Wednesday, May 25, 2011

Gulf News

Abu Dhabi Abu Dhabi-based real estate developer Aldar Properties is in a “stable condition” and won’t need any further financial help from the government, its chief executive officer Sami Asad said here yesterday.

Speaking to reporters on the sidelines of MEED-organised Arabian World Construction Summit, Asad said: “We are in a stable condition. Financially, we are quite good.”

In January, Aldar, the emirate’s biggest developer, agreed to sell real-estate assets including a Ferrari theme park and convertible bonds to the government for Dh19.2 billion to reduce its debt.

Back in black this year

The emirate will pay Dh10.9 billion for the theme park, roads and bridges on Yas Island and Dh5.5 billion for homes and land, Aldar said in a statement at the time.

The company said the Abu Dhabi government-owned Mubadala Development Company will buy a Dh2.8 billion convertible bond from Aldar.

Aldar reported its biggest quarterly loss last year after the global credit crisis drove down Abu Dhabi property prices by more than a third from their 2008 peak.

However, it reported a Dh189.1 million net profit for the first quarter of 2011, compared to a Dh314.2 million net loss in the corresponding period last year. Separately, Asad said Aldar will deliver over 2,500 residential units this year at its Al Muneera and Al Zeina projects on the Al Raha Beach Development. As well, it will deliver 150 showrooms next month at Motor World, and one commercial tower in Al Muneera, this year.

Aldar’s portfolio of projects in the emirate of Abu Dhabi is valued at more than $75 billion with the entire portfolio slated to be completed and delivered in this decade.

Shares

The stock of Aldar on the Abu Dhabi Securities Exchange fell 2.90 per cent yesterday to close at Dh1.35 on a declining market.

Earlier this year, Aldar’s chief financial officer Shafqat Malek said he expected the company to return to profit by the end of this year.

“In the coming year, you will see that the company will be in the black at net profit level for 2011 and 2012 as well,” Malek told investors at the time. “We don’t expect the market will remain like this — there is a future,” he added. Real estate companies in the UAE have been on the path of recovery as economic growth gains traction post global financial crisis.

By Himendra Mohan Kumar?Staff Reporter

Gulf News 2011. All rights reserved.