By Gavin Gibbon
Developer cites increased occupancy rates and strong rental yields for improved performance
Al Mazaya Holding Group profits for the first half of 2014 were AED40.3m ($10.9m), an increase of 631 percent on the corresponding period a year earlier.
The improved results were attributed to increased occupancy rates in recently completed Al Mazaya Holding residential developments, and strong rental yields.
Revenue generated through rents during the first half increased from AED23.4m in 2013 to AED32.5m in 2014, a rise of 39 percent.
Occupancy levels in the company's Gulf residential developments, which include the Sky Gardens towers in Dubai's International Financial Centre district and the Al Mazaya Towers in Kuwait, were between 80 and 100 percent.
The sale of completed residential and commercial developments, such as The Villa and Q-Point projects in Dubai and the Mazaya Business Avenue in Kuwait, boosted group revenues by AED82m.
Total company assets at the end of the first half of 2014 stood at AED2,949.6m, compared to AED2,868.9m a year previously.
Al Mazaya Group CEO Eng. Ibrahim Al Saq'abi said: "We have enjoyed a good start to 2014, marked by strong demand for residential and commercial premises.
"Al Mazaya does not compromise on quality, and today we see there is healthy appetite in the market for developments that are built to last and to offer comfort and luxury affordably.
"The Gulf economies have emerged from the downturn caused by the global financial crisis and today we see opportunities for developers prepared to invest in their markets to achieve excellence.
"In the first half of 2014, we have made considerable progress in expanding our operations, launching Mazaya Turkey in order to focus on opportunities presented by the buoyant Turkish residential sector.
"We look forward to the second half of the year and to continued strong financial performance, in line with our long-term strategic planning."
The financial results were presented at a meeting of the Al Mazaya Holding Group board, chaired by Rashid Al Nafisi, chairman of the board of directors.
Mazaya have increased the rent in Sky Gardens by an additional 100% for some tenants. The claim they could do this because apparently the building is not under Dubai's Ejari but comes under DIFC jurisdiction. They are trying to force some tenants to leave.
They also have mega inflated "chiller" fees of around Dhs 1000 - 2400 per month depending upon the apartment size. This is not including the DEWA bill !?!
No wonder profits are high!
The rents at Sky Gardens have increased exorbitantly - with some tenants claiming more than a 100% increase in their rents. The rent they charge does not include chiller fees. Tenants had no say in this ridiculous rent hike matter and were told to take it or leave it.
Chiller fees were incredibly high as well and completely disproportionate to its use throughout the year! The Chiller usage statement explained nothing about the charges and when tenants asked to clarify these statements, they were not able to provide an explanation except that the charges had to be paid!
Oh yes, with all this considered, I'm sure they're doing fantastically well!