Jul 11 2011 |
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TDIC Project Scale-Back, Delay Reduces 2011 Spending By 28% -Docs
Monday, Jul 11, 2011
(This story was originally published Sunday.)
DUBAI (Zawya Dow Jones)--Tourism Development and Investment Co., the Abu Dhabi government-owned real estate and resort developer, reduced by 28% its budgeted spending for the year by putting on hold, or scaling back, projects, according to a company bond prospectus.
A strategy approved in December 2010 by TDIC 's board on "selectively hibernating, delaying or scaling-back certain projects" has reduced the company's total budgeted capital expenditure for 2011 to 13.4 billion U.A.E. dirhams ($3.65 billion), from AED18.6 billion, the document dated June 29 says. "In light of the size and variety of the projects in its pipeline, it is impractical for TDIC to develop each of its projects simultaneously," the document says.
TDIC in late June hired BNP Paribas , HSBC , National Bank of Abu Dhabi , Royal Bank of Scotland , and Standard Chartered Bank to arrange a series of fixed income meetings, which began in the U.A.E. on Sunday. The company, which has 69 projects under various stages of design and development, has a $3 billion Global Medium Term Note Program.
TDIC made a net loss of AED1.15 billion in 2010, roughly double its loss of AED551 million in 2009, according to an income statement in the prospectus. Revenues last year, however, rose to AED347.2 million from AED235.1 million in the previous year as hospitality revenues from one of its resorts increased.
TDIC hasn't yet recognized any revenue from selling residential projects, even those which have been pre-sold, as it only recognizes revenue when an individual property is completed and handed over.
-By Nour Malas, Dow Jones Newswires; +971502890223, nour.malas@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
11-07-11 0349GMT
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