Dubai: Nakheel continues to reap benefits from its portfolio of developed projects in realising a 115 per cent gain in net profits for the first quarter to total a substantial Dh1.35 billion. A year earlier, this was Dh629 million. For 2014, the developer recorded Dh3.68 billion as net.
Its projects on the Palm continue to add clout to the financials, such as the imminent launch of the retail portfolio at the Golden Mile. Elsewhere too, Nakheel has started to hits its strides in generating leasing income from its retail assets. Palm remains a firm favourite with private developers too, with A.A. Properties launching a limited edition set of five villas (with price tags of Dh70 million) last week and another developer all set to announce a venture with one of the world’s top architects early next week. According to the Nakheel Chairman, Ali Rashid Lootah, “We expect to build upon these impressive first quarter results throughout 2015.”
The developer last year had brought forward the repayment of its bank debts, clearing Dh7.9 billion a full four years ahead of requirement. A trade creditor sukuk of Dh4.4 billion is what is left on the books and need to be paid in August 2016.
“With our significantly reduced level of debt, we are well positioned to pursue our strategy of creating more cash generating assets,” said Lootah.
And there is a lot of that happening in the coming years. Earlier this month, the go-ahead was given on multiple projects, which will include creating the many components of the mixed-use Deira Islands. This will include a 16-tower cluster and a signature mall.
It will also leverage the Dragon Mart and Ibn Battuta Mall brands through expansions. In all, 24 million square feet of new retail, residential and leisure stock will be created by the developer, which is aiming for Dh7.5 billion a year in recurrent income in the medium term.
On Deira Islands, ‘The residential projects are still in different stages of development/launch,” said Robin Teh, Country Manager at Chestertons Mena. “But the developer has already indicated all 5,300 shops and 96 cafés/restaurants at the Night Souk have been leased, reflecting strong demand for retail.
“But Palm remains the top performer for Nakheel, enjoying high value transactions and retaining its popularity with expats and locals alike.”
