Property News · February 2, 2017

The developer behind Dubai’s palm islands enjoys record profits


A clean slate for the formerly debt-ridden property giant
Aerial view of Palm Island in Dubai, UAE. Basar/Shutterstock
Nakheel, the real estate behemoth responsible for the palm-shaped islands dotting the Persian Gulf, announced yesterday its record takings in 2016.
Net profits for Nakheel reached AED4.96 billion (USD1.35 billion) last year, the highest ever for the Dubai-based developer. This is an increase of 13 percent from the AED4.38 billion (USD1.19 billion) posted by the company in 2015.
The company also reduced its debt pile, accumulated from Islamic sukuk bonds, by AED4.3 billion (USD1.2 billion).
“2016 was a momentous year in which we met and completed all of our restructuring obligations by repaying all AED4.3 billion of the trade creditors sukuk from our own resources – and recorded our highest-ever net profit since Nakheel’s inception,” said Ali Rashid Lootah, Nakheel’s chairman.
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Nakheel’s profits took off partly on the strength of its 18,000-unit residential leasing business. Occupancy rates for its residential leasing portolio has hovered at “almost 100 per cent,” the company reported.
Property handovers from Nakheel totalled more than 1,426 homes and land parcels last year, up 40 percent from 2015. Most of the units were in Palm Jumeirah, Jumeirah Park, Al Furjan, and International City.
Nakheel paid off its final trade creditor sukuk bond in August. It puts an end to a five-year restructuring process that saw the government of Dubai taking over Nakheel from its beleaguered parent company Dubai World.
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Source : property-report.com
Read more…The developer behind Dubai’s palm islands enjoys record profits

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