(MENAFN-Khaleej Times) The developer said the early repayment ? part of Dh6
Leading developer Nakheel confirmed on Sunday that it has instructed the repayment of Dh2.35 billion of bank debt € more than a year-and-a-half ahead of time.
The developer said the early repayment € part of Dh6.8 billion due to be repaid to banks in September 2015 € reflected the strong financial performance of the company post-restructuring.
The move also underscores the underlying strength of the growing local real estate market as well as the significantly-improved economic conditions in the UAE and increased trust and confidence among investors in Dubai and Nakheel, the company said in a statement.
Nakheel, one of the world€™s leading developers, has unveiled several new projects in the wake of a strong recovery of Dubai€™s property market.
It said the early payment was possible as it could deliver thousands of units to customers as investor confidence in Dubai reality returned.
Nakheel chairman Ali Rashid Lootah said the company continued to deliver on € and in some cases, outperform € the commitments set out in our post-restructuring business plan.
€œOur prepayment is a major milestone in Nakheel€™s history, and further proof of our robust financial performance since we completed our restructuring in August 2011.€
€œThe early payment has been made possible by delivering thousands of units to customers, ongoing cost savings achieved and the support of the Government of Dubai, investors and business partners, all of whom I thank again for their patience, understanding and trust and confidence in Nakheel,€ said Lootah.
Nakheel pointed out that since restructuring in 2011, it has recommenced work on all 10 of its €œnear-term€ projects, and delivered around 8,000 units to customers.
The developer had delivered 8,000 units, paid around Dh13 billion to contractors and suppliers, paid interest of Dh1 billon to banks and made profit payments of around Dh1 billion to sukuk holders.
The developer claimed it had saved around Dh23 billion by outperforming the post-restructuring business plan.
Currently, there are more than 4,000 units with an estimated current sale value of Dh13 billion in the company€™s development pipeline, with the first handovers of completed units due later this year.
€œWe continue to successfully deliver on our business plan and to earn trust and confidence of our investors and customers. The early payment of a significant proportion of bank debt is a key Nakheel initiative taken in proactively managing its financial affairs and in laying the foundation for a long-term sustainable business. We expect to further improve the financial health of our business,€ said Lootah.
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