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
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By Reuters
Sun 19 Jan 2014 12:49 PM

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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