Nakheel said to sell Palm plot for $109m

Dubai developer says sale indicates 'clear signs of renewed confidence' - report
Nakheel said to sell Palm plot for $109m
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By Andy Sambidge
Sun 12 Aug 2012 04:20 PM

Dubai developer Nakheel said on Sunday it had sold a plot of land on Palm Jumeirah for AED400m ($109m).

The 305,704 sq ft plot was bought by a local investor the company didn’t identify, Bloomberg reported.

Nakheel said the sale showed there were "clear signs of renewed investor confidence in Dubai real estate and in particular for unique products such as those offered on Palm Jumeirah".

“We have seen a very healthy demand in the first half of 2012, and this looks set to continue for the year,” said the developer in a statement cited by Bloomberg.

Last month, the state-owned developer said its first-half profits jumped 36 percent, buoyed by property handovers on several projects.

The developer reported net profit was AED767m ($208.82m) in the first six months of the year, up from AED562m in the year-ago period.

Revenues rose to AED3.1bn in the first half, up 112 percent from the corresponding period a year ago, it said in a statement.

It said in August 2011 it was restructuring some AED59bn of liabilities, including AED32bn to Dubai government, AED19bn to trade creditors and AED8bn to banks.

As part of the restructuring, the company, which was previously the property arm of Dubai World, is now controlled by the Dubai government, along with another debt-ridden property firm Limitless.

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