Payments are four years ahead of schedule and will be funded from state-owned developer's own resources
Dubai property developer Nakheel will repay all its outstanding debt to banks by August this year, four years ahead of the schedule mandated by its restructuring plan, the state-run company's chairman said on Wednesday.
The repayments will total AED5.54bn ($1.5bn), and will be funded from Nakheel's own resources rather than support from the Dubai government, Ali Rashid Lootah told a news conference.
In February, Nakheel said it had initiated early repayment of AED2.35bn of bank debt 18 months ahead of maturity in September 2015.
Nakheel was a casualty of Dubai's 2008-2009 property market crash, pushing it close to default and forcing it to restructure its debt. But its prospects have improved over the past two years with a strong recovery of Dubai's real estate market.
In April, the company reported a 28 percent year-on-year increase in first-quarter net profit to AED629m, on revenues of AED1.37bn.
Calling Nakheel a 'casualty' is hardly a fitting description is it now? The contractors paid 40fils in the Dirham...now they were casualties...as were all the people who invested in Jebel Ali Palm. We hear nothing of that Jebel Ali Palm but we hear much about new construction in Palm Dierra...I wonder why?
I totally agree with Simon.
I Agree with both Simon & Amiro. If Nakheel has the reserves why are they not continuing with the Palm Jebel ALI PROJECT where hundred of investors have invested their savings ?