Property developer Nakheel said on Sunday that its net profit for the first nine months of the year nearly doubled to Dh1.1 billion due to property handovers and growing business in its retail and leasing segment. The profit surged 97 per cent during January-September 2012 period compared to a net profit of Dh600 million as of 30 September 2011, the developer said in a statement. The company, builder of man-made islands in the shape of palms and a map of the world, did not provide any quarterly numbers. Revenue for the nine months rose to Dh4.5 billion from Dh2.0 billion in the prior-year period. Nakheel said it delivered about 4,000 units 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 Dh9.4 billion to trade creditors as part of a $16 billion debt restructuring plan agreed last year. "These robust results are a reflection of the buoyant market conditions in Dubai and the ability of Nakheel to leverage of the assets it has developed. Prices in the flagship development of Palm Jumeirah have crossed the pre-crisis levels, a definite sign of customer confidence and trust returning to the market. Further, the delivery of completed units and the near 100 per cent occupancy of the retail and leasing asset portfolio have augmented the profitability of the business for the current period," the statement said. "Given the robust financial performance and the improved market outlook, Nakheel continues to proactively evaluate and assess various development projects, including retail that are expected to be implemented in the subsequent periods in order to deliver sustainable communities and quality assets," it said. The company has embarked upon a number of development projects such as the Palma Residences and Palm Views on Palm Jumeirah and the most sought for residential development of Jumeirah Park. More such projects are in the pipeline to cater to the growing demand for a quality product offering in the right location. Nakheel said it has started work on the expansion of the existing Dragon Mart and is planning an expansion of the existing Ibn Battuta Mall where there is surging demand from retailers to cater to the growing neighbourhood community. Nakheel recently completed an interest and profit payment of Dh211 million to its lenders in August of 2012. Cash payments to Nakheel 's trade creditors have reached Dh9.4 billion since the commencement of the restructuring. Long-term customer liabilities have reduced amicably by Dh7.2 billion through various consolidation and swap schemes offered to its customers. "The financial performance is reflective of the continuous support and commitment made by the Government of Dubai and the Board of Directors of Nakheel to implement a sustainable business strategy for the medium to long term as per the revised operating business plan," the statement said. Khaleej Times
