Construction

Nakheel confirms $52.5m in profit payments

Developer swung to profit in the first quarter of this year after registering a loss in the year earlier period, on the back of property handovers and reducing costs

Nakheel, the Dubai based property developer, confirmed on Thursday the on time profit payment of $52.5m to all holders of its $1.03bn sukuk, with the due date falling on June 15, 2012.

The developer swung to profit in the first quarter of this year and said that had made the necessary arrangements for Deutsche Bank, the registrar and paying agent for the trade creditor sukuk, to make the second profit payment of 10% which was due on June 15.

The payment includes the profit on the original sukuk of $1.03bn that was issued in August 2011, as well as the first tap issuance of $606.3m in 2012,” the developer said in a statement.

Nakheel’s Islamic bond is part its $16bn debt restructuring deal, which will repay trade creditors 40% in cash and 60% via the bond. The company completed its financial restructuring in August 2011, while in December of the same year; it announced a net profit of $143.2m for the first half of the financial year, ending 31 December 2011.

It added that revenues were $408.3m, which were driven mainly by the handover of development properties in a number of Nakheel projects.

For 2012, the developer said that it had made a profit of $98.5m in the three months to March 31, 2012, in comparison to the $8.7m loss in the year earlier period. This was due to the developer handing over more properties and reducing costs.

Earlier this year, Nakheel launched a new mixed used development on Palm Jumeirah which include a 192 studio units and retail space for restaurants and selected shops on the ground floors.

In January the developer negotiated $272.2m in contractor claims and said it would be delivering 7,000 units in 2012. It said that it is also tendering new contracts in its retail segments.

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