Nakheel sells $15m Dubai villa plots in 2 hours

By Andy Sambidge
  • Wednesday, 12 December 2012 5:04 PM
  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Nakheel said on Wednesday that it sold more than AED55.4m ($15m) worth of villa plots at Jumeirah Islands, with all available plots snapped up in two hours.

The plots were sold at auction for higher-than-expected prices, hitting AED513 per square foot, the Dubai developer said in a statement.

"The sales are yet more proof of renewed investor confidence in Dubai's real estate market," the developer added.

On Thursday, Nakheel will begin sales of 90 villas at Jumeirah Village Circle. Prices for the four bedroom, 3,700 sq ft homes start at just under AED3m.

A Nakheel spokesman said: "Today's auction was a resounding success, and we are confident of high-levels of interest in the Jumeirah Village Circle villas tomorrow.

"Recently we sold two plots of land at Palm Jumeirah for a combined price of AED419m and 122 residential villa plots in Jumeirah Village Circle for a total AED113 million. There is no doubt that investor confidence is back."

Nakheel also cited a recent report by CBRE on increases in property rents as further evidence that Palm Jumeirah, its flagship development, is one of Dubai's most highly sought-after locations to live.

"This report confirms what we have been saying for some time - Palm Jumeirah prices continue to rise," the spokesman added.

Earlier on Wednesday, Nakheel Properties said it had made a AED210m ($57m) payment to sukuk holders as part of its debt restructuring deal which repays trade creditors 40 percent in cash and 60 percent via the Islamic bond.

The sum takes the total amount paid to trade creditors to AED9.6bn ($2.6bn) since November 2009, the developer said.

In October, Nakheel said net profit for the first nine months of the year nearly doubled, helped by property handovers and growing business in its retail and leasing segment.

Net profit for the nine months ended September 30 was AED1.1bn ($299.5m), up from AED600m in the year-ago period.

Revenue for the nine months rose to AED4.5bn from AED2bn in the prior-year period.

Related:

Stories

Nakheel set to award Legacy Villas contracts

Nakheel says new Dubai retail centre fully leased

Nakheel's nine-month net profit almost doubles

Nakheel awards Palm beach profiling contract

Nakheel makes $57m sukuk payment

Galleries
REVEALED: How the crash hit Palm property prices

REVEALED: How the crash hit Palm property prices

REVEALED: Dubai’s 20 priciest properties

REVEALED: Dubai’s 20 priciest properties

Videos

Stunning aerial video charts Dubai’s staggering growth

Stunning aerial video charts Dubai’s staggering growth

Companies

Nakheel - UAE

Also in Real Estate

Most influential Brit expats in property

UAE Brit List 2013 revealed

Also in UAE

UAE overtakes Saudi as top Gulf construction market

UAE is top MidEast performer for tourism receipts

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: LA B Sunday, 16 December 2012 9:37 AM[UAE] - UAE

Why are the old projects that are on hold not being revived and completed? Only new projects announced to show all is fine. I hope that the money gained from these sales will also be used to complete old projects that were looked up to during boom times

Reply to this comment.

Posted by: Distraught Resident Friday, 14 December 2012 12:23 AM[UAE] - Canada

It is so sad, Nakheel is destroying our beautiful Jumeirah Islands, they completed the villas 7 years ago n delayed the delivery of Mansions 'forced construction' for 3 years, destroying our quite atmosphere then, now this new sale, out of the box, never ever known to the residents is a big blow.
It is worth to note that after 7 years, yet they could not fix the security gates.

Reply to this comment.

Posted by: Andy Thursday, 13 December 2012 9:46 AM[UAE] - USA

Key words here are "SAYS" lol.. In courts this is described as Heresay.

Reply to this comment.

Posted by: Red Snappa Thursday, 13 December 2012 9:45 AM[UAE] - Ireland

Fifteen million dollars, could hardly be construed as a major indication of recovery. It pales into insignificance compared witha restructured debt of US$ 16.1 billion along with the hundreds of millions Nakheel will have to shell out on the construction contract relative to 400 Legacy Villas recently resurrected.

In fact, I would question whether a previously financially burned contractor would be prepared to take the latter development on, given the deferred payment risk analysis. As an aside, whatever happened to the Government guarantee, through the Land Department, known as Tayseer qualified projects, do Legacy Villas fall under this umbrella, or has that scheme been abandoned, reached its financial boundaries etc, etc?

Anyway, these incoming amounts from land sales are frighteningly small, including the US$ 114 million received for a plot on the Palm Jumeirah in the not too distant past, when compared to the combination of ongoing operating costs and financial liabilities.

Reply to this comment.

Posted by: RBH Thursday, 13 December 2012 9:44 AM[UAE] - Lebanon

I would like to know who were the buyers. Were they Nakheel or Dubai World executives?! Hehehehe...

Reply to this comment.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearingTerms and conditions

Further reading

Get E-Mail Alerts
Get E-Mail Alerts

Arabian Business Power 500 2013 - Top 5 from Qatar »

Ahmad Al Sayed  Akbar Al Baker  Nasser Al Khelaifi  Naseer Homoud  Bader Al Darwish 
View complete list
Features & Analysis
The waiting game

The waiting game

With Dubai’s property market seemingly on the cusp of a new boom...

3
Dubai gears up for next, more modest boom

Dubai gears up for next, more modest boom

The next boom is likely to be more gradual, partly because financing...

5
The world's most influential Arabs: Power defined

The world's most influential Arabs: Power defined

Putting together a list of the world’s most powerful Arabs is...

Most Popular
Most Discussed
  • 10
    Kuwait to start medical care segregation on June 1

    It is so sad to see Kuwait deteriorate in this way...can it not learn for its neighboring countries such as UAE and Qatar. So what are the values that... more

    Saturday, 18 May 2013 8:47 PM - Mike
  • 4
    Dubai's Atlantis said to raise $850m loan

    Yes - you're missing something. There was already at least one loan on the property of $700m plus Kerzner's 50% stake of $250m and Istithmar's $250m stake... more

    Saturday, 18 May 2013 7:18 PM - Jerry Yamate
  • 3
    Ex-DIFC chief launches Dubai crowdfunding firm

    Enough with the startup/SME bandwagon jumping already! SME's need startup capital and loans, not some sharks dying to be the middle man and be cut in for... more

    Saturday, 18 May 2013 10:24 PM - Hisham
Read all user comments »
Read all user comments »
Read all user comments »