Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Nakheel to prepay bank debt of AED4 billion in 2014  Join our daily free Newsletter

MENAFN Press - 07/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN Press) Nakheel plans to prepay in 2014 more than half of its bank debt of AED6.8 billion, due for repayment in September 2015, the company has announced.



The company will pay AED2.35 billion in Q1 2014, and plans an additional prepayment of approximately AED1.65 billion in Q3 2014.



The company also says that a robust financial performance that has significantly exceeded its revised business plan, has led to improvements of approximately AED22 billion to date over the plan period



At the time of restructuring, in August 2011, Nakheel had a total bank debt of AED7.9 billion, due for repayment in 2015, 2016 and 2018. The early repayments of AED4 billion in 2014 “ a major milestone in the company's history “ reflect the strength of the local real estate market, significantly improved economic conditions in the UAE and the growing trust and confidence among investors in Dubai and Nakheel.



Nakheel Chairman Ali Rashid Lootah said: "In 2011, Nakheel pledged to construct and deliver some 9,000 units over a five year period across a number of projects that had been stalled during the global financial crisis. We rose to this challenge and, thanks to the support of the Government of Dubai, Nakheel customers and other stakeholders, have been able to achieve this remarkable milestone.



Over the past 28 months, since the successful completion of the financial restructuring, Nakheel has continued its focus on delivering the revised business plan and creating a long term sustainable business. During this period, both revenues and net profits have doubled from FY11. Not only has the company returned to profitability, it has witnessed an almost threefold increase in cash flows generated in FY13 compared to FY11



"This strong financial performance is the result of Nakheel recommencing all 10 of its 'Near Term' projects, giving the required impetus to the local real estate market by providing opportunities for local contractors to restart construction activity in Dubai," said Ali Rashid Lootah



"The result of these efforts is borne out by the fact that by the end of FY13, Nakheel had handed over 7,000 units to customers and paid amounts aggregating to AED12.3 billion to various contractors, creditors and suppliers since the restructuring began in November 2009. Our financial performance has significantly exceeded the revised business plan, leading to improvements of approximately AED22 billion to date over the plan period."



Nakheel not only worked diligently to deliver its revised business plan, but also launched new development projects to revive its core business activity of property development. At 31 December 2013, Nakheel had more than 3,500 units with an estimated current sale value of AED10 billion in the development pipeline across various developments. The first handovers are due in 2014.



In addition, with the objective of increasing its portfolio of cash-generating assets, Nakheel has several retail and leasing units under construction which, when complete, will more than double the existing net retail leasable area from 2.5 million square feet to about 5.6 million sq ft.



The number of leasing units is also set to increase from the current 16,500 to about 17,000 when completed. In addition, the company is developing four hotels with a combined total of 1,200 rooms that will progressively come on stream this year, with more under evaluation.



Ali Rashid Lootah said: "Nakheel is well on its way to establishing its leading position in the local and regional real estate sector. We continue to successfully deliver on our revised business plan and to earn trust and confidence among investors. The prepayment of a significant portion of bank debt is another major Nakheel initiative taken in proactively managing its financial affairs and in laying the foundation for a long term sustainable business. We expect to further reduce our debt burden in subsequent years to further improve the financial health of our business.



"We thank the Government of Dubai and the various regulatory authorities for providing Nakheel with all their support and assistance to date without which it would not have been possible to achieve these results. We acknowledge and admire the commitment and hard work of each of the board members whose determination to overcome challenges was noteworthy and guided Nakheel to its accomplishments. Last but not the least, the management team of Nakheel which displayed tremendous team work blending youth with experience, particularly the young UAE Nationals who rose up to the challenge and worked diligently to ensure the objectives given to them were achieved.


About Nakheel
Nakheel is one of the world's leading developers and a key player in realising the vision of Dubai for the 21st century: creating a world class destination for living, business and tourism. Nakheel has delivered “ and continues to enhance “ an iconic portfolio of innovative landmark projects in Dubai across a range of sectors including residential, commercial and leisure.Nakheel's current portfolio of developments in Dubai includes Palm Jumeirah, The World, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Al Furjan and International City. Together, these span nearly 14,000 hectares and provide homes for more than 130,000 people. Retail developments include Dragon Mart, Ibn Battuta Mall, Nakheel Mall and Hotel, The Pointe at Palm Jumeirah and a growing number of neighbourhood malls. Nakheel is also developing hotels at Palm Jumeirah, Ibn Battuta and Dragon Mart.

 


MENAFN Press




  MENA News Headlines
 Sep 19 2014 - Gilas seeks to end Asiad gold droughtArab News
(MENAFN - Arab News) GILAS PILIPINAS leaves for Incheon in South Korea on Saturday to gun for the Philippines' first basketball gold medal in more than five decades in the Asian Games with the ...

 Sep 19 2014 - Aafia Siddiqui seeks to abandon her legal fight for freedomArab News
(MENAFN - Arab News) NEW YORK: A Pakistan-born neuroscientist has become a rallying cry for militant groups demanding her release from a US prison. But in a little-noticed move she is trying to ...

 Sep 19 2014 - Australia foils IS plot 'in largest ever anti-terror raids'Arab News
(MENAFN - Arab News) SYDNEY: Australia's largest ever counterterrorism raids on Thursday detained 15 people and foiled an alleged plot by Islamic State (IS) militants to conduct 'demonstration ...

 Sep 19 2014 - Iraq PM opposes foreign soldiersArab News
(MENAFN - Arab News) BAGHDAD: Iraq's prime minister strongly rejected the idea of the US or other nations sending ground forces to his country to help fight the Islamic State group saying Wednesday ...

 Sep 19 2014 - Armed Shiite rebels push into SanaaArab News
(MENAFN - Arab News) SANAA: Armed Shiite rebels pushed into Yemen's capital Sanaa after clashing with the army in the city's northwest outskirts on Thursday security sources and residents said in an ...

 Sep 19 2014 - US: Assad broke chemical arms agreementArab News
(MENAFN - Arab News) WASHINGTON: US Secretary of State John Kerry on Thursday accused Syrian President Bashar Assad of breaking the terms of a global pact on chemical weapons by unleashing chlorine ...

 Sep 19 2014 - Alpen Capital commences operationsArab News
(MENAFN - Arab News) Alpen Capital Saudi Arabia has been licensed by the Capital Markets Authority (CMA) to commence operations. The company has established its first office in Riyadh and hired a ...

 Sep 19 2014 - Renault claims to excel in aftersale servicesArab News
(MENAFN - Arab News) Renault described as the number one European brand in the Kingdom claims to deliver the best aftersale services maintenance and spare parts across Saudi Arabia.Renault says it ...

 Sep 19 2014 - Abuja: Emirates upgrades aircraftArab News
(MENAFN - Arab News) Only two months after launching its operations to Abuja Emirates a global connector of people and places announces it will upgrade the route's operating aircraft to a Boeing ...

 Sep 19 2014 - SABB Takaful backs school bag donation drive for low-income familiesArab News
(MENAFN - Arab News) SABB Takaful Company sponsored a charity campaign aiming to provide school bags to students from limited income families. The community service project was held on the first day ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help