Dubai developer Nakheel has announced that it has made a profit payment of Dhs220 million on its Dhs 4.4 bn trade creditor sukuk.
The company has sent instructions to Deutsche Bank, the registrar and the paying agent, to make the payment on June 15 to all sukuk holders.
The sukuk is due to mature in August 2016.
State-owned Nakheel had to be bailed out by the Dubai government in 2010 after it was pushed into debts following the property crash in Dubai. Following the bailout, Nakheel underwent an $11 bn restructuring process as it looked to streamline its operations and cut losses.
Improved conditions in Dubai’s real estate market helped the company recover in the last two years.
The developer posted a net profit of Dhs 1.35 bn in the first quarter of 2015, up 115 per cent from the Dhs 629 m it earned in Q1 2014.
Nakheel has also cleared off its debts gradually. In its recently issued financial statement, the company said that it has reduced its debt from the initial amount of Dhs 12.3 bn to Dhs 4.4 bn.
Nakheel is also optimistic about its future prospects as it looks to cash in on Dubai’s maturing but growing property market.
In an interview with Gulf Business in April, Lootah said that the developer expected to continue posting a steady annual profit growth of 40 per cent in 2015 and 2016.
In order to boost revenues, the company is looking to expand its residential leasing portfolio from 17,000 units in 2014 to 30,000 units by 2017, while its leasable retail space area during the same period is estimated to grow from 2.5 million square feet to 10 million square feet.
Nakheel also forayed into hospitality in 2014 and plans to open 10 hotels and resorts across its master developments such as Palm Jumeirah, Ibn Battuta Mall and International City in Dubai by 2020.
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