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Sat 2 Apr 2016 12:53 PM

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$1bn Reem Mall developer says 2015 net profit up 47%

National Real Estate Company says construction of Abu Dhabi mall will continue to 'exceed expectations'

$1bn Reem Mall developer says 2015 net profit up 47%

The developer behind Abu Dhabi's $1 billion Reem Mall project has announced a 47.2 percent rise in net profit in 2015 compared to the previous year.

Kuwait-based National Real Estate Company (NREC) said in a statement that it recorded KD15.4 million in net profit for the year. 

NREC CEO Samuel Sidiqi said, “We are pleased to report to our shareholders that the company recorded its highest profitability in five years and progress across geographies."

In January, the Reem Mall project was granted detailed planning approval by the Abu Dhabi Urban Planning Council.

Reem Mall is being built on Reem Island and is expected to open in 2018. The mall will be home to the world's biggest indoor snow play centre and is set to include 450 stores including 85 food and beverage outlets.

Sidiqi said that in Kuwait, NREC's commercial and retail portfolio continued to be a strong source of recurring revenue with rental income growing 4.6 percent in 2015 to KD10.4 million.

In Egypt, its 3.8 million square metre Grand Heights project generated KD11.0 million in sales in 2015 and the handover of Phase 1 units commenced this month with the project scheduled for completion between 2020 and 2021, he added.

Sidiqi said: “Our outlook for 2016 is positive. We forecast that our core business will continue to provide a strong cash flow for the company through our operations in Kuwait and Jordan. We expect our top line to grow, driven by continued strong sales in Egypt. Reem Mall progress will continue to exceed expectations.”

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