Dubai: Lifted by strong numbers generated by its real estate, hospitality and telecom subsidiaries, Dubai Holding’s Commercial Operations Group recorded a 42 per cent year-on-year gain in net profits to total Dh4.7 billion. It was Dh3.3 billion in 2013.
In a statement, the holding company — which comprises the likes of Dubai Properties Group, Tecom Investments, the Jumeirah hotel chain as well as Mall of the World — said gains were made in gross profits and margins, while revenues were up 14 per cent to Dh13.2 billion (Dh11.6 billion in 2013). In another plus, it also brought down its debt-equity ratio to 0.52 against the previous year’s 0.61.
“We have a number of programmes already running and our Dh4.5 billion bundle of initiatives will help drive Dubai’s agenda to become the innovation capital for more than 2 billion people who live in the region around us,” said Mohammad Abdullah Al Gergawi, Chairman of Dubai Holding, which has completed 10 years of operations.
The forecasts for this year take on an even bigger scale — “Just a few of the many [projects] include the first phase of Mall of the World — a project that has captured the imagination of people both here and abroad — the official opening of d3 (the Dubai Design District) as well Jumeirah expansion projects,” said Ahmad Bin Byat, CEO, in a statement. [D3 is expected to add more ‘business partners shortly’]. Apart from these, there will be “the execution of the recently announced “innovation strategy”, a multi-year project that will … support the development of Dubai’s economy for generations to come.”
Last year, property sales — at already established locations such as Business Bay upcoming ones such as Villa Lantana, Mudon and Culture Village — fetched Dh5.6 billion to the total revenues. Turnover from hospitality, leasing and property management lines added Dh7.6 billion. “With more infrastructure additions taking place, Business Bay should see more plots fronting Shaikh Zayed Road being developed by investors through joint ventures or via structured investments,” said Simon Townsend, regional Head of Capital Markets at DTZ.
Occupancy
The business parks in the Tecom portfolio recorded occupancy of 89.1 per cent, while that at Dubai Industrial City was 88.6 per cent. The cluster of internet City, Media City and Knowledge Village has crossed the 95 per cent mark in occupancy and “way ahead of the wider commercial market occupancy of around 76 per cent”.
“Such occupancy levels along with gradual price increases allowed office rental revenue to grow by 8 per cent’, the statement said. ‘DI also signed a significant number of new land leases pushing revenues to grow in excess of 30 per cent”.
On the residential side, “The Mudon villas have cornered the market with the first phase handovers proving quite successful, while the second phase is ongoing,” said Chandrakant Whabi, CEO of Acrohouse Properties. “The other big take up in the last two quarters was achieved by the Bay Square development in Business Bay.”
The current Dubai Properties’ portfolio also includes the Dubai Wharf and Manazel Al Khor in Culture Village. The DPG leasing portfolio totals 25,000 residential units while commercial adds up to 2.8 million square feet.
