Records Dh1.47b built on residential deliveries and rental income
Nakheel has seen an 8 per cent increase in its first quarter net profits — totalling Dh1.47 billion — compared with a year ago. The gains were led again by its delivery portfolio and the steady accumulation of new rental assets to its portfolio, especially in retail and residential leasing.
Hospitality is proving another earner, with the opening of its first hotel project. The Q1-16 revenues have not been disclosed.
During the first quarter, Nakheel opened Dragon Mart 2, nearly doubling the size of the mall complex to 2.2 million square feet of leasable space. The new mall and hotel have received an “overwhelming response since opening: footfall at Dragon Mart now reaches 120,000 visitors a day at peak times, with the hotel achieving averaging 60 per cent occupancy during its first two months of operation,” Nakheel said in a statement.
“Our first quarter results are very encouraging and reflect investor confidence in Dubai and its real estate sector,” said Ali Rashid Lootah, Chairman, in a statement. “The figures set the benchmark for us to further improve and generate better results.
“Our strategy to create more cash-generating assets and strengthening Nakheel’s asset base to further boost our business and financial results in the coming years is beginning to yield results.”
In its core area of residential properties, Nakheel handed 536 units to customers during the first three months.
This quarter, the developer is on track to open the 300,000 square feet extension to Ibn Battuta Mall. Meanwhile, private developers keep adding to the residential stock on the Palm, with Azizi Developments launching one and soon to add another, and Ellington Properties coming out with a niche offering.
Seven Tides, a developer with an already substantial portfolio of Palm-based projects such as Dukes Dubai and Anantara Residences, confirmed that demand for its recent launches are on a solid footing. Nakheel itself has got a mall and high-rise development going at full tilt on the Palm.
Going forward, more investors could acquaint themselves with buying options on the Palm. “The prices on the Palm have indeed stabilised … this has led it to become a more affordable option for investors and end users,” said David Godchaux, CEO of Core, a consultancy.
Manoj Nair, Associate Editor
1 April 2016