Construction progress for Rak Properties as net profit declines 21%
Developer says $24m Gateway Residences to be handed over in 2019 despite 'unusual drop in sales and leasing' deals last year
UAE-based real estate developer Rak Properties said its $24m (AED88m) Gateway Residences in Ras Al Khaimah’s Mina Al Arab community will be handed over in 2019, despite facing a 'sluggish' 2018 market led to the company's annual net profits declining by 21.4%.
The developer’s short-term milestones also include the handover of Abu Dhabi’s Julphar Residence – under-construction on Reem Island – in 2019. The 46-floor twin-tower project will comprise 266 apartments.
Construction progress is also being made on Rak Properties' Bay Residences, a mixed-use development with four towers, comprising 569 apartments and 16 townhouses. In its 2018 financial report, the company said that building works Bay Residences will begin in H1 2019.
The sales launch of Rak Properties’ Marbella Villas within Hayat Island took place in Q4 2018, and construction work on the 205-unit project will also start this year.
Among the company’s ongoing hospitality projects is Anantara Hotel & Resort, which will include Ras Al Khaimah’s first Maldivian outwater villas, and Intercontinental Hotel & Resorts, which is being built in Mina Al Arab.
The developer's net profits dropped to $41.1m (AED151m) in 2018 from $52.3m (AED192m) in 2017. In its 2018 financial results document, Rak Properties attributed the 21.4% decline to an "unusual drop in sales and leasing transactions".
However, the developer's asset value increased by 3.5% over 2017 figures to $1.4bn (AED5.3bn) in 2018.
Commenting on the financial results, HE Mohammad Hasan Omran, chairman of Rak Properties, said: “Our financial results for 2018 reflected the significant progress made on residential projects – both under construction and scheduled to be launched in 2019.
“We expect a significant boost in our recurring revenue portfolio in future once the Anantara and Intercontinental hotels in Mina Al Arab are operational.”