Dubai
A stringent cash management programme is at the heart of Nakheel’s turnaround, helping the developer effect savings of nearly Dh23 billion. This was attained through a combination of cash received from property handovers, sales proceeds from new projects that were not there in the original plan, as well as steady income from leasing and retail activities.
Another huge advantage was derived from being able to reach colonies on nearly 90 per cent of the claims against it from trade creditors.
“Post-August, with the ban debts cleared, there will be new opportunities to generate more revenues,” said Sanjay Manchanda, CEO of Nakheel.
A sizeable portion of mid-to long-term proceeds could derive from Deira Islands, now taking gradual shape off the coastline. Sale of plots — numbering 90 plus, to third-party developers to build hotels is going according to Nakheel’s projections, said Manchanda.
“It’s a process that will take time given that for a sub-developer acquiring the plot represents a significant initial step,” the CEO said.
Another major investment, this one direct from Nakheel, on Deira Islands will take the form of a mall. Manchanda declined to give a specific schedule for the project’s launch, but confirmed that the various design elements were being put in place.
