By Daniel Shane
Palm Jumeirah property developer says it has repaid total of AED923m to lenders since restructuring
Dubai's Nakheel, the developer behind the emirate's manmade Palm Jumeirah, said on Tuesday it had repaid an additional AED206m (US$56m) to creditors as part of its debt restructuring.
The property firm, which was badly impacted by Dubai's real estate crash in 2008-2009, said the funds were due to be repaid at the end of February in accordance with Nakheel's restructuring commitments. Nakheel said the sum brought the total amount it had paid back to lenders since its 2011 restructuring to AED923m.
“We remain focused on meeting our restructuring commitments to stakeholders, while continuing to work towards achieving our corporate objective of creating a long term, sustainable business that contributes to growth of Dubai’s real estate sector – and to the overall economy of Dubai and the UAE,” a spokesperson for Nakheel said in a statement.
Nakheel was one of the high-profile corporate casualties during Dubai’s debt crisis, which saw house prices in the emirate decline by over 60 percent. The developer agreed a US$16bn debt restructuring deal in 2011 and was forced to scale back its plans. The firm is reportedly currently in talks with lenders to extend a AED8bn (US$2.17bn) loan due in 2015.
The developer, which was brought under direct government control as part of the restructuring of its parent Dubai World, said last month it had delivered around 4,000 units to its customers since the start of its restructuring in August 2011.
The firm reported a 57 percent rise in annual profit for 2012 while revenues increased 91 percent to AED7.8bn. The developer awarded construction contracts valued at more than AED1.4bn for new projects, including Dragon Mart Phase 2 and Palma Residences, last year.
The developer expects to hand over around 3,000 units to customers in 2013.
Earlier this week, Nakheel said it would build 170 new apartments on its flagship development Palm Jumeirah as part of a new project called Azure ResidencesFor all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Always believed Dubai's return to a healthy economy would be linked to the return of Nakheel.
May God bless and guide Nakheel to prosperity and in turn bless the patient investors (and victims) who suffered the wrath a global financial crisis.
Dubai is truly back and in growth, mabrook all who held.
A very pertinent statistic, Telcoguy old chap, especially considering that the repayment term for the US$ 16.1 billion restructure finalised in 2011, is between 5 and 8 years. Presumably we starting counting on our fingers from 2011 in this respect! Plus all the new project expenditure now racking up supposedly over the next three years.
One might hazard that a shiver has just run down the collective spines of the international banking community.
and commiserations to all who went under awaiting their money!
@ Mhd, well, held is the operative word because they are still holding my money and the money of many hundreds of other buyers even though the project is cancelled.
To the best of my knowledge they are paying back a portion of the interest and penalties of which were past due. They are negotiating to delay paying back the actual amount and even the minimum payments due. I have a payment that I am supposed to collect on and I have not collected interest or any thing and it has been 10 years now.