Dubai’s Nakheel mulls financing for $900m Palm retail projects

The indebted developer recently green light work on the Nakheel Mall and The Pointe

Debt-ridden developer Nakheel is “evaluating finance options” in a bid to raise nearly US$900m needed to fund its latest Palm Jumeirah retail developments, a spokesperson told the Bloomberg news wire on Sunday.

The government-owned developer, which last month reported 2012 profits were up 57 percent to AED2.017bn (US$549m) and revenue for the same period was up 91 percent to AED7.8bn, needs to raise AED3.3bn to finance its latest high profile projects.

At the weekend, Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum ordered work to start on two major Nakheel projects on the Palm Jumeirah.

Sheikh Mohammed, also vice president and prime minister of the UAE, gave the directive after being briefed on plans to build the Nakheel Mall and the Pointe.

The Nakheel Mall project will be built on the beachfront at the bottom of the trunk of the Palm Jumeirah at a cost of AED2.5bn.

Ali Rashid Lootah, chairman of Nakheel, briefed Sheikh Mohammed about components of The Nakheel Mall, which stretches over a land area of one million square feet.

Sheikh Mohammed also ordered the commencement of The Pointe project, overlooking the Jumeirah Beach hotel and the Atlantis resort at a cost of AED800m.

The Pointe will include shops, computer-controlled fountains, a marina and a public walk on the tip of the palm-shaped island.

Nakheel's plans for 2013 also include the handover of around 3,000 units to customers, investment of AED6.5bn in new projects to be completed over a three year period, expansion of Ibn Battuta Mall and continued enhancement of existing communities with local facilities including shopping centres and parks.

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Posted by: Sol

Nakheel we love you (not).
True to form, with the "Under New Management" sign on the door meaning less than it seemed, the attitude remains "Announce it first, think about how to pay for it second " or, come to think of it, third, as the second stage is to sell the plots ... paying for it comes after that... and of course you can also later choose to only pay your contractors a small percentage of what you owe them a few years later too .... so that makes the sums add up nicely.

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