Abu Dhabi: Sorouh Real Estate PJSC, the Abu Dhabi-based real estate developer announced on Thursday its consolidated fourth quarter results and full year results for the full year ended 31 December 2009.
Revenues for the fourth quarter were Dh438 million (Q4 2008: Dh532 million), principally driven by the sale of land at alghadeer into a new joint venture company and recurring rental income from Sas Al Nakhl, Khalidiya Village and Al Oyoun.
Operating profit for the quarter was Dh333 million, up 60 per cent (Q4 2008: Dh208 million)
Following the successful restructuring of alghadeer and as part of Sorouh’s ongoing strategy to attract third-party investors into selected projects, Sorouh sold the 643,000 square metres of land on which the first phase of alghadeer will be built to Al Sdeirah Real Estate Investment LLC (Al Sdeirah).
Sorouh retains a 30 per cent shareholding in Al Sdeirah. As a result of this land sale, Sorouh realised a profit of Dh293 million. Sorouh has been appointed the development manager for the alghadeer project.
Sorouh retains the title to the remaining 51.8 million square metres of land in Seih Sdeirah, held at nominal value.
During the year, Sorouh continued to focus on improving the quality of its earnings by increasing the amount of recurring income from leasing and rental properties.
Sas Al Nakhl, Khalidiya Village and Al Oyoun Village are now all fully leased, resulting in their annual revaluation adding Dh53 million to the income statement.
Further rental income will be derived in 2010 from the investment portfolios in Sun and Sky Towers including the retail podium on Shams Abu Dhabi and in 2011 from Al Rayyana (previously known as Golf Gardens 2)
