Nakheel Sold Palm Jumeirah Plot For AED 400mMonday, August 13, 2012
Nakheel reveals on Sunday that it has sold a plot in Palm for $109 m (AED 400 m). The piece of land had an area of 305,704 sq foot and has been bought by some local investor. Nakheel also says that this sale indicates quality products such as property on Palm are more in demand. This sale also indicates the renewed signs of investor confidence on Dubai property sector.
Nakheel says that since it observed quite healthy demand of property in the first six months of the year, it is expecting the same trend to continue in other half of the year. Nakheel also revealed in the last month that due to property handovers on several projects, its profits during the first half of the year jumped by 36%.
Nakheel reported that in the first six months of the year, its net profit was AED 767 m as compared to AED 562 m reported a year earlier. The revenues of Nakheel grew by 112% to AED 3.1 bn in the first half of the year compared with the same period last year. Last year during August, it was restructuring its liabilities of AED 59 bn. The liabilities also included AED 19 bn to trade creditors, AED 32 bn to Dubai Government and AED 8 bn to banks.
Nakheel was previously the property arm of Dubai World but is now controlled by the Government of Dubai. It is also being controlled by Limitless, which is a debt-ridden property firm in Dubai.