Flat profit in first quarter for Nakheel

Nakheel reported first-quarter profit of Dh1.48 billion, flat on a year earlier, as handovers slowed.

The Dubai government-owned property developer reported a profit of Dh1.47bn in the same period last year.

Nakheel said that it delivered 412 units to customers during the quarter, compared with 536 a year earlier.

The developer said that its profits were in line with company forecasts, and that its retail, hospitality and residential leasing businesses continued to perform “solidly”.

“We continue to execute our long-term business plan, in turn contributing positively to Dubai’s real estate sector,” said the Nakheel chairman, Ali Rashid Lootah.

The developer did not provide figures for its turnover during the period or any detailed breakdown of how its profit was achieved.

Nakheel said that it awarded construction contracts worth Dh5bn during the first quarter of the year, and was set to award a further Dh4bn in the three months to the end of June.

The developer said that it ­currently has 4 million square feet of retail space in operation with another 13 million sq ft under development, including Ibn Battuta Mall, Dragon Mart 1 and 2 and Golden Mile ­Galleria.

The developer began work in February on the second expansion of Dubai’s Ibn Battuta mall, comprising 279 apartments, a 16-screen cinema and 53,000 sq ft of retail space.

Nakheel earlier this week broke ground on a new Dh240m 375-room hotel at Ibn Battuta mall, which is expected to be completed by 2019.

Two Nakheel hotels are currently in operation with 16 more under development. The company plans to double its residential leasing portfolio to more than 37,000 units under ongoing expansion plans.

jeverington@thenational.ae

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