24 April 2008 - Abu Dhabi, UAE: Sorouh Real Estate PJSC, the leading Abu Dhabi-based real estate developer, today announced a 218 per cent growth in net profits to AED 361 million (2007: AED 114 million) for the first quarter of 2008. The improved profits performance, representing 14 fils per share (4 fils in Q1 2007), came on the back of income from land sales at Shams Abu Dhabi, which was converted during 2007 from leasehold to freehold sales, as well as the good performance of the company's asset portfolio.
The profit generated in the first quarter was derived from operating activities with no asset revaluations. The changes at Shams Abu Dhabi also meant revenue grew strongly, from AED 280 million in Q1 2007 to AED 624 million.
Abubaker Siddiq Al Khouri, Managing Director for Sorouh, said: "We are pleased to report another good financial performance of the company for the first quarter. This was mainly due to the Shams Abu Dhabi freehold sales and the other income producing assets which all performed well."
Market capitalisation was estimated at AED 20.7 billion at 31 March 2008, and total assets grew 12 per cent to AED 8.1 billion, compared to AED 7.2 billion at 31 December 2007. In addition, the company retained strong cash reserves, with liquid funds increasing from AED 1.4 billion to AED 1.7 billion.
During the first quarter of 2008, Sorouh's initiatives and achievements included:
- The signing of an agreement with Metro-Goldwyn-Mayer Studios Inc. (MGM) and Rubicon, Inc. (Rubicon) to explore the development of entertainment opportunities within Sorouh's real estate portfolio.
- The opening of a new sales centre in Abu Dhabi, show-casing the company's main developments to potential customers.
- The forming of a Joint Venture Company with Tabreed to provide district cooling to sectors of Shams Abu Dhabi.
- The forming of a Joint Venture Company with the international leading integrated property group Goodman for the exclusive development and management of Business and Logistics Parks in the GCC.
Mounir Haidar, Sorouh's Chief Executive Officer, stated: "We were particularly pleased to announce partnerships with regional and international leaders such as MGM, Rubicon, Tabreed and Goodman. Their partnership is a strong endorsement of Sorouh's position as a leading real estate development company in Abu Dhabi and the UAE as a whole."
Note: All historical figures are for the comparable period in 2007 unless otherwise noted.
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About Sorouh Real Estate P.J.S.C.
Abu-Dhabi based Sorouh was established on 26 June 2005, with a capital of AED 2.5 billion. Today, it is one of the largest real estate developers listed on the Abu Dhabi Securities Market with a market cap close to AED 20.7 billion. It is one of the most widely-held issues with approximately 40,000 shareholders. Sorouh employs in excess of 200 highly qualified professionals operating in the field of master-planning and master-development.
Sorouh now has more than AED 45 billion of projects under development. These include:
SHAMS Abu Dhabi, Sorouh's flagship project - a AED 25Bn landmark development on Al Reem Island. A complete new city for 45,000 residents, SHAMS Abu Dhabi will be a self sustaining city of canals and parks which integrates world-class master planning practices and extends the lush green of Abu Dhabi's landscape.
The Gate District at SHAMS Abu Dhabi - the AED 11Bn residential, office and retail development is a cluster of eight towers located at the entrance to SHAMS Abu Dhabi and is architecturally renowned worldwide. The Gate District also includes the 74 storey Sky Tower which will be a pinnacle of luxury for its residential and commercial occupants when completed. Located next to the Sky Tower, the 65-storey Sun Tower is home to elegant residential spaces with captivating views of the Gulf and Abu Dhabi skyline.
Alghadeer - a development located in Saih As Sidairah between Abu Dhabi and Dubai. Expected to be home to over 18,000 people, the 3 million sq m site is a complete community offering easy access to the UAE's commercial centers airports and ports. Sorouh is also developing the Golf Gardens overlooking the Abu Dhabi Golf Club course, the Tala Tower on Al Reem Island, Saraya development on the Abu Dhabi Corniche as well as the Abu Dhabi Aviation Authority residential project.
In addition to other achievements, Sorouh was awarded three prestigious accolades during 2007. It won the "Best New Business" category at the Middle East Business Achievements Awards, the "Abu Dhabi Cityscape Best Commercial Project" for the Gate District, and also won the "CNBC Arabian Property Award" for Best development for Central Park at Shams Abu Dhabi. In 2008, Sorouh was awarded the "Best Customer Service Company - Real Estate category" by the Middle East Excellence Awards Institute. The award recognizes Sorouh for its unmatched customer care and for the innovative services provided to its customers.
For more information, please contact:
Shaza Albein
Assistant Marketing Manager
Sorouh Real Estate P.J.S.C.
Tel: +971 2 6978956
salbein@sorouh.com
Darren Milner
Account Director
Four Communications Group Abu Dhabi
Tel: +971 55 985 3378
darren.milner@fourcommunications.com
© Press Release 2008