UAE's Aldar reports 5% growth in gross profit for H1 2017

Aldar Properties' gross profit for H1 2017 reached $351.2m, up by 5% compared to figures from the same period last year, which stood at $334.9m

The Bridges on Reem Island is Aldar's most recent residential development.
The Bridges on Reem Island is Aldar's most recent residential development.

Abu Dhabi-headquartered developer, Aldaar Properties, has released its financial results for the first half of 2017.

The company announced that its gross profit for H1 2017 reached $351.2m (AED1.29bn), up by 5% compared to figures from the same period last year, which stood at $334.9m (AED1.23bn).

Mohamed Khalifa Al Mubarak, CEO of Aldar Properties, commented: "Aldar has delivered a solid set of results for the first half of the year.

“Robust occupancy across our portfolio of investments demonstrates our resilience as an asset manager and the success of our most recent residential development, The Bridges, clearly shows there is strength in the Abu Dhabi property market. The unprecedented response to The Bridges, which sold out in a matter of weeks, showcases the opportunities presented by the mid-market and supports our strategy to continue to focus on this segment.”

He added: "The Abu Dhabi government’s unveiling of a $3.3bn (AED12bn) development plan for Yas Island will accelerate its transformation into a global urban, entertainment, and business hub.

“Aldar is pleased to have been chosen to develop the $272.3m (AED1bn) media and entertainment zone in the project, set to become home to thousands of working professionals, who will further enrich the Yas Island destination.”

In April, Aldar launched The Bridges, a 1,272-unit, $353.9m (AED1.3bn) mid-market residential development on Reem Island.

In its financial report, Aldar noted that three towers of The Bridges sold out, contributing to the company’s development sales for H1 2017, valued at $490.1m (AED1.8bn).

During the period, Aldar was also appointed to develop a 3.2 million-square-feet campus, which will serve as the new home of the Abu Dhabi Media Zone Authority, twofour54, as part of a $3.3bn (AED12bn) development on Yas Island.

The project is expected to attract 5,000 working professional from the media sector.

The developer also revealed that the year-to-date value of the construction contracts awarded for its Yas Acres and Mayan projects stands at $599m (AED2.2bn). Moreover, it committed to four new investments during the period, completing its $817m (AED3bn) investment programme.

Meanwhile, three of its developments – Ansam, Al Hadeel, and Nareel Island – are reportedly on track for a Q4 2017 handover, with construction entering the final stages.

Aldar added that occupancy across its residential and office portfolio, as well as in Yas Mall, remained stable at above 90%, while its hospitality portfolio recorded 78% occupancy, against the Abu Dhabi market average occupancy of 70%.

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