Abu Dhabi- Aldar profit jumps 200%

(MENAFN- Khaleej Times) Abu Dhabi's real estate major Aldar Properties' net profit jumped 200 per cent to Dh1.25 billion in the second quarter on its merger with Sorouh and handover of properties. The handover of land plots and residential units, steady growth from recurring revenue assets were the factors for surge in earnings along with a one-time gain on the acquisition of Sorouh's assets offset by certain asset impairments. Net profit for the half year was Dh1.41 billion up 57 per cent. Revenues in the quarter were generated from the on-going handover of serviced land at Al Raha Beach East, the start of residential unit handovers at Tala Tower, revenues from national housing projects and recurring income from the investment properties portfolio. The landmark merger with Sorouh boosted assets to Dh43.7 billion, growing 36 per cent in the period. The property developer reported good progress on the integration of the two businesses, which is on track to be substantially complete by year end. The company saved two per annum of interest on an outstanding loan secured by Sorouh real estate. Abubaker Seddiq Al Khoori, Chairman of Aldar Properties, said: "The merger of the two companies is already delivering significant benefits. This includes a strengthened financial position as shareholders equity has almost doubled, gearing has more than halved and the business has a more balanced and diversified portfolio." "We will be handing over more than 7,400 units to customers over the next 12 months, reflecting the exciting growth ahead. This strong pipeline, supported by our steadily growing recurring revenues, leaves us well placed to generate sustainable returns," Al Khoori said. Handover has started on 577 units in two towers on Al Reem Island. Tala Tower, the 375 apartment residential tower, was 70 per cent handed over to owners during the second quarter. "We also expect handover of a further 202 units in the tower adjacent to Tala Tower in the next quarter," the real estate firm said, in a statement. Building completion certificates have been issued to three residential towers at The Gate Towers, the 3,533-unit development on Al Reem Island and the handover will begin handover in the last quarter of this year. The first phase of the 2,130-unit alghadeer development in the eastern region of Abu Dhabi is now ready to be handed over to owners. At alrayyana, tenants will be able to move into the development in the coming months. Leasing activity will commence towards the end of the year and there is already significant interest for bulk leases at the development. The construction of Yas Mall, Aldar's 233,000 square meters flagship retail development on Yas Island, is progressing well and is 80 per cent complete. At World Trade Center Abu Dhabi, managed by Aldar, final preparations are being made for the opening of The Mall by the end of this year. Seventeen plots of land were handed over as part of the on-going programme of delivery of serviced land at Al Raha Beach East, which will continue into 2014. The developer's office portfolio has expanded following the merger with Sorouh and now consists of 263,000 square meters of high-grade commercial premises, while residential leasing portfolio will be strengthened further with the handover of alrayyana and The Gate. By Haseeb Haider