Property News · November 6, 2016

RAK Properties to build homes in central business district of Abu Dhabi


RAK Properties, backed by the Ras Al Khaimah Government, has become the second major developer to announce plans to build homes in Abu Dhabi’s long-awaited new central business district.On Thursday, RAK Properties announced that it had committed to building 205 apartments in the new Madinat Zayed city development close to the airport.The Abu Dhabi-listed group said that the apartments would range from studio to two-bedroom apartments.Last month Abu Dhabi private developer Bloom Holding announced plans for a first 2,000 flats which it hoped to rent out for as little as Dh40,000 a year each in the new district located in a triangle between Khalifa City A, Khalifa City B and Mohammed bin Zayed City.Both developers’ plans come after the Abu Dhabi Executive Council announcement in October that it had approved a Dh1 billion infrastructure construction package to start in the district among approvals for nearly Dh6bn worth of development projects in Abu Dhabi emirate aimed at stimulating the economy.According to the Executive Council statement, the Madinat Zayed project will include the implementation of infrastructure works, such as roads, facilities networks and power supply to 704 commercial lots. The area will include a “multi-modal” public transport system, the statement said without elaborating.Originally known as Abu Dhabi’s Capital District and later New Khalifa City, Madinat Zayed will house 300,000 people and 325,000 workers.Plans for the district were originally drawn up between February 2008 and March 2009 and included a central Federal Precinct to serve as the UAE’s national seat of government, and a central space hosting seven grand boulevards that represent the seven emirates.On Thursday RAK Properties reported that third-quarter profit rose to Dh40.4 million from Dh4.79m a year earlier.It said that revenue for the three-month period to the end of September 2016 increased to Dh158m from Dh41.7m a year earlier.Profit for the first nine months of the year increased to Dh79.1m from Dh27.4m a year earlier on the back of revenues which shot up to Dh305.4m from Dh133.7m in 2015.RAK Properties put the profit increase down to the handover of completed villas at the Flamingo Villas project in its Mina Al Arab master-planned development.In a statement accompanying the accounts, Mohammed Sultan Al Qadi, RAK Properties’ managing director and chief executive, said that phase two of the Flamingo Villas project was currently in the process of handing over.RAK Properties shares rose 0.1 per cent yesterday to close at 63 fils.lbarnard@thenational.aeFollow The National’s Business section on Twitter

Source : thenational.ae
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