Built to inform

Sign up for the daily newsletters

No, Thank you

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

Gateway Residences is located in Ras Al Khaimah's Mina Al Arab community.
© Rak Properties
Gateway Residences is located in Ras Al Khaimah's Mina Al Arab community.

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.

FINANCIALS

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.”

Most popular

Awards

New category open for consultancies at CW Awards 2019 in Dubai
Sub-Consultancy of the Year to be crowned for the first time at the gala ceremony

Conferences

Leaders UAE 2019: Pinsent Masons confirmed as Gold Sponsor
Law firm is among the major construction industry players confirmed as sponsors for Leaders UAE's
Leaders in Construction UAE Summit returns in Sept 2019
Dubai conference to see top officials discuss the people, trends, and challenges that will power

Latest Issue

Construction Week - Issue 747
Aug 03, 2019