Abu Dhabi’s Sorouh to complete $3.5bn projects by 2014

State-linked company has projects worth AED5bn close to completion, says CFO
Abu Dhabi’s Sorouh to complete $3.5bn projects by 2014
Real estate UAE
By Reuters
Mon 18 Apr 2011 11:37 AM

Sorouh Real Estate expects to complete projects worth AED13bn ($3.54bn) with delivery of some 7,000 units by 2014, its chief financial officer said.

Sorouh, Abu Dhabi's second largest developer, has also stalled its mixed-use projects in Egypt and Morocco after the unrest in the North African countries, CFO Richard Amos told reporters on the sidelines of a conference in Abu Dhabi.

Most of Abu Dhabi's developers are focusing on completion and delivery of existing projects after suffering big losses during the global financial crisis which put an end to a six-year construction boom.

"We have AED5bn of projects very close to completion and another AED8bn of projects that will be ready in the next few years," Amos told reporters.

"In 2011-12, about 3,500 units will be delivered and by 2013-14, another 3,500 units will be delivered," he said, adding these exclude national housing projects.

Separately, Sorouh will deliver about 1,200 units from projects it is developing as part of the national housing scheme, Amos said.

Projects scheduled for completion in the short-term include the Sorouh Tower at Danet Abu Dhabi, Tala Tower, Al Rayanna, Al Ghadeer and The Gate.

"We are focusing on delivery and execution and stabilizing the business. 2011 and beyond are years of delivery," said Abubaker Seddiq al Khoori, managing director of Sorouh.

With those deliveries, Sorouh expects to triple its recurring income in two to three years, he said.

Sorouh had launched a 1,500 acres mixed use project in Egypt and another 500 acres project in Morocco but these have been "put on hold" due to the crisis that shook the north African region, said Al Khoori.

"Until there's clarity in the market, we will not go ahead with the projects," he said, declining to give the development value of the projects.

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