Nakheel says upset investors must wait 5 years for cashback

Property developer says it plans to launch new projects worth AED6-8bn during this year

Dubai property developer Nakheel reported a 27.2 percent rise in full-year profit on Sunday, as the firm continued to benefit from the emirate's resurgent real estate market.

Nakheel made a net profit in 2013 of AED2.57 billion ($700 million), compared with AED2.02 billion in the previous year, it said in a statement.

Revenues also boomed in 2013, growing 20.5 percent to AED9.4 billion.

Nakheel plans to launch new projects worth between AED6-8 billion in 2014, Ali Rashid Lootah, the firm's chairman, said at a news conference.

About 80 percent of property buyers in Nakheel's stalled projects have now settled with the developer, with 20 percent of buyers still in dispute, said Lootah. These can get their cash back five years from the date of Nakheel signing its restructuring deal, he said.

The company has made interest and profit payments of around AED1.8 billion to lenders, issued a trade creditor sukuk of around AED4.4 billion, and made cash payments of about AED12.3 billion to various trade creditors and contractors since the start of its debt restructuring, a company statement said.

Lootah said Nakheel would consider an initial public offer of shares after the company settled its debts.

The firm handed over 3,150 units in 2013, although this is poised to drop to 1,600 units this year. Last year, it sold 3,500 properties.

Earlier this month, Nakheel said it would repay this year up to AED4 billion of bank debt due in 2015.

* Nakheel no longer responds to media enquiries from Arabian Business, nor does it grant Arabian Business access to any of its media events or announcements.

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Posted by: Red Snappa

To be perfectly frank, unless you can instigate a complete boycott on doing business with Nakheel, from Joe property/land buying investors and corporate public. Your comments will fall on deaf ears.

You're into what has become defacto delayed payment common practice, a precedent set when the first debt restructure agreement was signed by a majority of parties.

However, the whole bubble syndrome cycle appears to be happening all over again, justified by the Expo 2020.

Ask yourself this was it really the side effects of the global economic crisis that cause the property market collapse or the state of the industry itself?

Posted by: David Johnson

For years they've been saying investors would get refunded without interest (in clear violation of their contracts) by the end of 2015. Now they've added a further 4 years to that date arbitrarily and without contacting any of us. I can't believe how they are treating us. They have ruined many many lives.

Posted by: curious

Indeed TCG

Unusual for you not to be here and turn facts on their heads.
Where are you?
We miss your jauniced view of life.

Posted by: Telcoguy

Oh well, where is the pack and go brigade now? WHJ? anything to add here about the "corrupt" and "decrepit" economies in Europe maybe?

Posted by: Jake

Great, this article should be linked to all future announcements related to new projects and investment opportunities in the real estate sector here. I'm just glad that this is a private company and has no connection to the Dubai Government, which leads the way in all matters related to real estate regulations and investor safety.

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