Dubai's Nakheel posts 57% rise in H1 net profit

Real estate developer says results demonstrate 'return of investor confidence and trust'
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By Andrew Sambidge
Tue 09 Jul 2013 02:49 PM

Dubai real estate developer Nakheel on Tuesday said it made a first-half net profit of AED1.2bn ($327m), up 57 percent on the same period last year.

Revenues for the first half of the year stood at AED4.23bn, up 36 percent, the company said in a statement.

It added that the results "demonstrate the continuing growth and strengthening of the real estate market in Dubai and the return of investor confidence and trust".

Nakheel said it continues to complete its near term projects and has now delivered around 6,000 properties, including around 1,400 in H1 alone, since completing its restructuring in August 2011.

Handovers have been predominantly in the residential developments in Palm Jumeirah, Al Furjan, International City, Jumeirah Village, Jumeirah Park and Jumeirah Heights communities.

The developer added that it is on course to deliver an estimated 3,000 units in 2013.

"There is a strong pipeline of Nakheel projects under development across the residential, retail leisure and hospitality sector with an objective of developing assets that are in demand and increasing the pool of cash generating assets," the statement said.

Among them are Nakheel Mall and Hotel, The Pointe at Palm Jumeirah, the extension of Dragon Mart and Ibn Battuta Mall, and residential projects including Palma Residences, Palm Views, Jumeirah Park, Jumeirah Islands, Jumeirah Village and community centres at Discovery Gardens and Jumeirah Park.

Nakheel said it is also currently evaluating a number of additional projects without giving further details.

Since restructuring in August 2011, Nakheel has paid over AED1.3bn in loan interest and sukuk profit payments.

The company has also made cash payments of around AED11.3bn to trade creditors and contractors since the restructuring began.

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