Dubai: Deyaar, Dubai's second biggest developer, announced a net profit of Dh44.4 million for the first six months ending June 30.

The results come as a positive boost after the loss of Dh243 million during the same period last year, which the company put it to the writedown on the value of select assets and investments.

Gross revenues for the period grew 48 per cent to Dh480 million compared with Dh325 million in the same period last year.

"The main reason for these profits would be the completion of their projects and the hand-over of their units as payments of 10 to 20 per cent are made when they are completed.

"The best way to manage liquidity is to complete projects," Craig Plumb, head of research at Jones Lang Lasalle, told Gulf News. Deyaar handed over a small portion of the units of properties in the five projects completed during the first quarter.

In April, Deyaar handed over its residential projects Mayfair Tower, Mayfair Residency, Clayton Residency and its commercial property, Metropolis Offices.

Commitments

"With the handover of Mayfair Tower, Mayfair Residency and Clayton Residency, in addition to Metropolis Offices, Deyaar will have successfully fulfilled its handover commitments for the first half of 2011," said Saeed Al Qatami, Chief Executive Officer, in a previous statement.

Deyaar aims to complete two more projects before the end of the year, bringing the total number of projects completed this year to seven.

"It is encouraging to see that projects are being completed and delivered and that means they can reinvest that cash into other projects and the building of the land bank.

"Developers are not starting new projects because the market is in oversupply. They are using the cash to improve their overall position or acquire land for future developments. But very few developers are starting new projects," said Plumb.

To manage its liquidity, Deyaar was also able to restructure its existing Islamic financing obligations with an extended repayment period and a substantial reduction in profit rates.

"Safeguarding the interests of our customers and maximising value for our shareholders, remain at the heart of our business strategy, to which we remain fully committed.

"Accordingly, we look forward to delivering another two projects over the course of this year," said Al Qatami.