Nakheel climbs its way back up with double profit

Nakheel climbs its way back up with double profit

Nakheel, whose developments at the height of Dubai's property boom contributed to the emirate's debt woes, has been slowly recovering from the crippling real estate collapse.

October 22, 2012 8:47 by Reuters

Dubai’s indebted property developer Nakheel said on Sunday that net profit for the first nine months of the year nearly doubled, helped by property handovers and growing business in its retail and leasing segment.

Nakheel, whose developments at the height of Dubai’s property boom contributed to the emirate’s debt woes, has been slowly recovering from the crippling real estate collapse.

Net profit for the nine months ended Sept. 30 was 1.1 billion dirhams ($299.5 million), up from 600 million dirhams in the year-ago period, Nakheel said in a statement sent by email. The company did not provide any quarterly numbers.

Revenue for the nine months rose to 4.5 billion dirhams from 2.0 billion dirhams in the prior-year period.

Nakheel, builder of man-made islands in the shape of palms and a map of the world, said about 4,000 units had been delivered to customers since the start of its restructuring in August 2011.

The company, brought under direct government control as part of the restructuring of its parent Dubai World, said it had made cash payments of about 9.4 billion dirhams to trade creditors as part of a $16 billion debt restructuring plan agreed last year.