Dubai's Nakheel repays more cash to lenders

Palm Jumeirah property developer says it has repaid total of AED923m to lenders since restructuring
Nakheel chairman Ali Rashid Lootah.
By Daniel Shane
Tue 26 Feb 2013 05:06 PM

Dubai's Nakheel, the developer behind the emirate's manmade Palm Jumeirah, said on Tuesday it had repaid an additional AED206m (US$56m) to creditors as part of its debt restructuring.

The property firm, which was badly impacted by Dubai's real estate crash in 2008-2009, said the funds were due to be repaid at the end of February in accordance with Nakheel's restructuring commitments. Nakheel said the sum brought the total amount it had paid back to lenders since its 2011 restructuring to AED923m.

“We remain focused on meeting our restructuring commitments to stakeholders, while continuing to work towards achieving our corporate objective of creating a long term, sustainable business that contributes to growth of Dubai’s real estate sector – and to the overall economy of Dubai and the UAE,” a spokesperson for Nakheel said in a statement.

Nakheel was one of the high-profile corporate casualties during Dubai’s debt crisis, which saw house prices in the emirate decline by over 60 percent. The developer agreed a US$16bn debt restructuring deal in 2011 and was forced to scale back its plans. The firm is reportedly currently in talks with lenders to extend a AED8bn (US$2.17bn) loan due in 2015.

The developer, which was brought under direct government control as part of the restructuring of its parent Dubai World, said last month it had delivered around 4,000 units to its customers since the start of its restructuring in August 2011.

The firm reported a 57 percent rise in annual profit for 2012 while revenues increased 91 percent to AED7.8bn. The developer awarded construction contracts valued at more than AED1.4bn for new projects, including Dragon Mart Phase 2 and Palma Residences, last year.

The developer expects to hand over around 3,000 units to customers in 2013. 

Earlier this week, Nakheel said it would build 170 new apartments on its flagship development Palm Jumeirah as part of a new project called Azure Residences

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