Nakheel announces 57% profit rise

Debt-ridden developer Nakheel has announced a 57 per cent profit surge to AED2.017bn for the year ending December 31 2012. The company also saw  revenues come in at  AED7.8 billion, up 91 per cent over the same period.

The company said it  handed over approximately 4,600 units since the start of its restructure until December 2012, predominantly in Palm Jumeirah, Al Furjan, International City, Jumeirah Village, Jumeirah Park, and Jumeirah Heights residential developments. Of these, 2857 were handed over in 2012.

It also said that  construction contracts worth more than AED1.4 billion were awarded for new projects including Dragon Mart Phase 2, Palma Residences, Palm Views, Jumeirah Park Legacy Villas and community/retail centres at Jumeirah Park and Discovery Gardens.

Nakheel said it completed interest and profit payments of around AED800 million to all lenders in 2012, and has made cash payments of around AED10 billion to various trade creditors and contractors since the start of its restructure. Long term customer liabilities have been significantly reduced - amicably - by around AED7.3 billion through consolidation and swap schemes offered to a large number of customers.

Nakheel Chairman Ali Rashid Lootah said: "2012 has been a hugely successful year for Nakheel , building on the momentum achieved in 2011. Our financial performance reflects the continuous support and commitment by the Government of Dubai and Nakheel 's Board of Directors to implement a sustainable, realistic long term business strategy. It is also proof that investor confidence is back, and that Nakheel is firmly moving forward and delivering.

"Our development initiatives to date are aligned with our corporate objective of creating a long term sustainable business as well as contributing to the growth of Dubai's real estate sector. We are diversifying our portfolio by seizing on growth opportunities in every sector of the market, and are recruiting in line with our expansion.”

Nakheel 's plans for 2013 include the handover of around 3,000 units to customers, investment of AED6.5 billion 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.