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Tue 26 Jan 2010 08:58 PM

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RAK Properties sees better 2010 on project deliveries

$150m dirham phase of Mina Al Arab project to be handed over in 2010's Q2.

RAK Properties sees better 2010 on project deliveries
BRIGHTER FUTURE: RAK Properties is set for a brighter 2010 as it looks to complete and hand over projects worth nearly $272.3m to customers. (Getty Images)

Abu Dhabi listed RAK Properties sees a brighter 2010 as it looks to complete and hand over projects worth nearly $272.3 million to customers, its chief executive said on Tuesday.

Speaking to Reuters, the chief executive at the UAE's sixth largest listed developer in the UAE, Mohammed Sultan al Qadi, said: "We have seen a light at the end of the tunnel."

He added: "We are optimistic that this year will be better financially than 2009," adding the firm was near to completing and handing over several projects.

He declined to specify whether actual profit for the year would be better than 2009.

RAK, which has yet to report its fourth quarter earnings, suffered a 45 percent fall in net profit for the first nine months of the year.

The firm's Julfar Towers project in the northern emirate of Ras al Khaimah, worth $136.1 million, and its $81.6 million RAK Tower project on Reem Island in Abu Dhabi, are expected to be completed and delivered in the first half of the year, Qadi said.

A 150 million dirham phase of the Mina Al Arab project will also be handed over in the second quarter of this year, he added.

The company is planning to build two five-star hotels in Ras al-Khaimah, the first of which is under tender with construction expected to start soon, with the second planned in six-months time.

He declined to give the projects' costs, but said they would be self-financed.

"We are seeing more demand. Clients are coming and enquiring about units," he said. "Most of our projects are under construction so there are no delays."

The developer, which in September borrowed $150 million for financing projects, has no current plans to tap debt markets, while plans to expand abroad still on hold, he said.

Rents in Ras al-Khaimah fell 17 percent during 2009, property services firm Asteco said earlier in January.

Ras al-Khaimah is one of seven emirates that comprise the UAE. (Reuters)

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