Build-to-sell property development business registers $223m in net profit, up $85m Y-o-Y
Emaar Development, the UAE-based build-to-sell property development business that is majority-owned by Emaar Properties, has recorded a 62% growth in net profit to $223 million during Q1 2018, as compared to the $138 million registered in the corresponding period in 2017.
In a statement announcing the results, Emaar Development said that revenue grew by 95% to $890 million, compared to the $455 million posted in 2017, which was reflective of a strong construction process that is focused on timely delivery, it said.
Furthermore, the company said that it has recorded sales of $1.06 billion in the first three months of the year and has a total backlog of $11 billion. It asserted that this highlighted its strong fundamentals and robust delivery pipeline for more than 27,200 residential units over the next four or five years.
In Q1 2018, Emaar Development launched the sale of 2,500 residential units across its mega-developments, with the company highlighting an overwhelming response from investors – both from within the UAE and international markets.
“With the listing of Emaar Development, our focus was to unlock its true potential and create added value for our shareholders. This is demonstrated by the growth of the business and focus on delivering high quality projects and service with our customer-first approach,” said Mohamed Alabbar, chairman.
“With our new developments, we are bringing exceptional lifestyle choices that meet the aspirations of our new generation through future city hubs that add value to the economy,” he noted.
Amongst the developer’s key launches during Q1 2018 was the Emaar Beachfront, which is a private gated island destination in the Arabian Gulf, which claims to offer residents the opportunity to experience ‘Miami beach style living’ in Dubai.
The launch of the first project – Beach Vista – was a sell-out success, with strong investor response for subsequent project, Sunrise Bay, together recording total sales of more than $368 million.
There has also been continued demand for residences in Dubai Creek Harbour, with the massive development nearly two-and-a-half times the size of Downtown Dubai. Here, Emaar Development has launched The Grand, a collection of high-end, ultra-luxury apartments, penthouses and podium-level townhouses, it said in its statement.
Emaar also highlighted significant progress in the construction of Dubai Creek Tower, which is at the heart of the mega-development. As of now, 90% of the pile cap work has been completed, the company said.
At Emaar South, a joint venture with Dubai South, Emaar Development has launched Saffron, its first garden townhouse community. Emaar South offers a mix of tiered townhomes, townhouses, villas and apartments.
Emaar Development has also launched a concept for co-living with Socio and Collective in Dubai Hills Estate, next-door to the upcoming Dubai Hills Mall. It said that Socio recorded sell-out response and that Collective has witnessed strong customer demand. The functional spaces in these projects encourage a connected and collaborative environment that appeals to entrepreneurs, creatives, professionals and families.
Strengthening partnerships to leverage the real estate development opportunities, Emaar and Aldar announced their joint venture to develop destinations that will ‘shape the UAE’s ever-evolving skyline’.
The JV has a targeted $8.16 billion development pipeline with an initial focus on two projects in Abu Dhabi and Dubai, the statement said.
Emaar Development has over 10 mega-developments in its portfolio, and its strategy is to maintain its leadership role in prime residential real estate in Dubai, draw on its significant land bank and partner with leading entities to create sustained value for its shareholders, it added.