Dubai: Nakheel posts $803m net profit in H1 2016

Nakheel handed over 1,177 units to customers during the first six months of the year

Nakheel reached a number of milestones during the first half of 2016.
Nakheel reached a number of milestones during the first half of 2016.

Dubai-based developer Nakheel announced a net profit of $803m (AED2.95bn) for the the first six months of 2016, representing a 4% increase, from the net profit of $770m (AED2.83bn) in the same period in 2015.

Nakheel handed over 1,177 units to customers during the first six months of the year, with its retail, residential leasing and hospitality businesses all performing strongly and contributing to the results, which are in line with the company’s forecast.

The company reached a number of milestones during the first half of 2016, including the opening of Dragon Mart 2 and the first of a series of expansions at Ibn Battuta Mall, a statement said.

Combined, these increased Nakheel’s existing retail portfolio by 35%, bringing the current operational total to 39ha.

Nakheel also opened its first hotel – a 251-room property attached to Dragon Mart 2 and managed by Accor – during H1 2016.

Nakheel is on target to officially open new neighbourhood community centres – known as Nakheel Pavilions – at International City, Al Furjan and Jumeirah Islands in the second half of 2016.

The company continues to grow its portfolio of retail and residential leasing assets - around 111ha of leasable retail space and 19,000 residential leasing units are currently under development at various locations across Dubai including Palm Jumeirah, Deira Islands, Jumeirah Village and Warsan Village, it said.

Nakheel is set to hand over more residential units to customers during H2 2016, starting at Azure Residences on Palm Jumeirah, with handovers at Jumeirah Park, Jumeirah Islands, Al Furjan and Warsan Village to follow.

Nakheel chairman Ali Rashid Lootah said: “Our encouraging half year results reflect investor confidence in Dubai and its real estate sector. Over the next six months we will build on these positive figures with further improvements and better results as we continue with our strategy of creating more cash-generating assets and strengthening our asset base.

“As ever, we thank our investors and the Government of Dubai for their ongoing trust and support as we continue to execute our business plan, in turn contributing positively to Dubai’s real estate sector in line with the Government’s 2021 vision.”

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