Abu Dhabi-based property firm Sorouh Real Estate has recorded a surge in 2011 income, driven in part by the handover of its Sun and Sky Towers on Reem Island.
The firm’s net profit hit AED383.3m ($104.3m) last year, up from AED16.2m ($4.4m) in 2010. The delivery of Sun and Sky Towers is said to have generated AED2.2bn. Revenues for the period were AED3.8bn, compared with AED1.2bn for the previous year.
“Revenues were driven by the handover of Sun and Sky, construction income from national housing projects, revenue from subsidiary companies, a significant land transaction and rental income from investment properties,” the company said.
“The mix of revenue contributors has helped strengthen the earnings profile of the business.”
The handover of residential units at Sun and Sky Towers started at the beginning of May, with over 95 percent of those sold handed over by the end of 2011.
Commercial properties in the Sky Tower also began transfer to owners in March. More than 90 percent of the units sold were delivered by the close of the year.
The handovers had a particularly strong impact on the firm’s fourth quarter results, where net profit was AED98.1m compared with a net loss of AED198.6m for 2010. Revenue for Q4 was up from AED197m to AED1.2bn.
Over the 12 month-period, the company delivered a total of 1,700 units. Net assets for the year amounted to AED6.6bn, against AED6.1bn in 2010.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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