Unit deliveries underpin Nakheel's biggest financial performance

Unit deliveries underpin Nakheel's biggest financial performanceImage Credit: Supplied

Nakheel announced a net profit of Dh3.68 billion for the financial year ending December 31, representing a 43 per cent increase on last year's net profit of Dh2.57 billion. The company said the strong financial performance is driven mostly by the continued delivery of residential units and plot sales.

Nakheel handed over 1,117 units last year, including 132 homes at Palma Residences and Palm Views on the Palm Jumeirah, the first new projects to be launched by Nakheel post-restructuring. Other handovers took place at Al Furjan, International City, Jumeirah Village, Jumeirah Park and Jumeirah Heights. Nakheel has now delivered 8,837 units to customers since its restructuring began in 2010.

''Last year was our biggest year yet in terms of financial performance and achievements,'' said Ali Rashid Lootah, Chairman of Nakheel. ''Not only did we clear all Dh7.9 billion of our bank debt four years ahead of time, we also delivered our first new project, Palma Residences, since restructuring.

''Our results are further evidence of the ongoing support from the Government of Dubai and Nakheel's Board of Directors to implement a sustainable, realistic long-term business strategy. They also highlight continued growth in investor trust in Nakheel and Dubai real estate.''

Interest in Nakheel's expanding number of retail projects swelled last year, with almost 7,000 units at Deira Islands Night Souk and Warsan Souk pre-leased within a week of their launch. The developer said there was also a large demand for space at Nakheel Mall and The Pointe at Palm Jumeirah and at various other retail projects.

''We will continue to build on the success of last year by releasing more units for lease, both on the residential and retail side,'' said Lootah. ''Our aim is to reach Dh7.5 billion in recurrent rental income—via a portfolio of 10 million sq ft of retail space and 30,000 residential units — within three years.''

Nakheel expects to award around Dh7 billion worth of construction contracts this year. Projects include Deira Islands Mall, The Circle Mall and Al Khail Avenue at Jumeirah Village, The Palm Tower, Ibn Battuta expansion and several other residential, retail and hospitality projects across Dubai.

Meanwhile, Nakheel has launched 1.5 million sq ft of shopping, dining and entertainment space at Al Khail Avenue. Located at Nakheel's Jumeirah Village Triangle community, the mall will have 350 shops including a supermarket, department stores and speciality outlets, a multi-screen cinema, an entertainment zone and cafés and restaurants.

British upmarket grocery chain Waitrose is the first tenant at Al Khail Avenue. Waitrose will occupy 35,000 sq ft. Nakheel expects to issue a construction tender for the mall within the first quarter this year, with project completion anticipated in 2018.

Source: Property Weekly


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