Dhs220m Payment to be Made by Nakheel on Sukuk Profit

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The payment based on profit will be given on the 15th of June, 2015 to all of sukuk’s holders in the amount of AED 4.4 billion.

Nakheel, a well-known developer in the UAE, has sent the paying agent, the registrar, and the Deutsche Bank specific instructions to have the payment given on the 15th of June to all of sukuk’s owners/holders.

Sukuk is expected to mature by the August of 2016.

Nakheel was bailed out in 2010 by the Dubai government following extreme debts after the crash in the property line in Dubai. After the bailout, Nakheel spent $11 billion in recreating the process in order to simplify operations and further cut down on the losses.

Once the conditions in the real estate sector improved in Dubai, the company has slowly gone into recovery over the last two years.

A profit of AED 1.35 billion was reported from Nakheel during the initial quarter of 2015. This is an increase of 115% compared to the AED 629 from the first quarter in 2014.

Debts have also been cleared gradually. In the latest financial report, the company stated that it has cut down its debts from AED 12.3 billion to the current standing of AED 4.4 billion.

Nakheel seems to be optimistic in regards to future prospects since it is looking to profit from Dubai’s expanding and developing real estate market.

During an interview back in April with Gulf Business, Lootah mentioned that the company expected to continue generating a steady yearly profit advance of 40% in the years 2015 and 2016 alone.

With the hopes of increasing revenues, Nakheel is also looking to enlarge its prominent residential properties and leases from the 17,000 units started in 2014 to up to 30,000 units by the year 2017, while its leasable marketing space zone during the same time period is projected to rise from 2 and a half million sq. ft. all the way to 10 million sq. ft.

To top it off, Nakheel has also invested in the hospitality unit, with plans of operating ten different resorts and hotels throughout its chief developments, such as the Ibn Battuta Mall, Palm Juneirah, and the International City by the year 2020, all of which are in Dubai.

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