Tuesday, Oct 25, 2011
DUBAI (Zawya Dow Jones)--Abu Dhabi's Sorouh Real Estate Co. PJSC said Tuesday it signed a 30-year residential lease agreement for 287 units out of 1537 available units for rental in Alrayyana development at "prevailing market rates".
"When complete in 2012, Alrayyana will be a large scale residential leasing project, which will significantly strengthen Sorouh's recurring income portfolio," Sorouh's corporate secretary Donovan Joseph said in a statement on the Abu Dhabi Stock Exchange website.
Rental prices in Abu Dhabi, the largest of the emirates in the United Arab Emirates and home to most of the country's crude oil, have continued to decline this year after a global financial crisis dried up bank lending and hit developers across the U.A.E. two years ago.
Sharper price declines in neighbouring Dubai has also had a negative impact on demand in the emirate's market.
The developer made a second quarter net profit of 125 million U.A.E. dirhams ($34 million), a four-fold rise over the year earlier period.
Sorouh shares closed down 1% Monday at AED0.91.
-By Tahani Karrar-Lewsley, Dow Jones Newswires; +9714 446-1692; Tahani.Karrar@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
25-10-11 0603GMT
