It was announced on the 21st of August that Nakheel, The Dubai government-owned developer, is now officially debt-free.
The company has a set of Sukuk-related payments on its book and has effectively been able to clear all of it. Now that the company is debt free, this draws a line under the restructuring programme that was launched in 2010.
The payment of the debt was routed through Deutsche Bank which was a total of Dh4.4 billion with an interest rate of 10 per cent. The bank will now start disbursals to all the Sukuk holders.
Nakheel had previously been able to successfully clear all other payments that were due in 2014 to banks and was able to do so four years prior to the original schedule of payment.
Many new projects are set by Nakheel as they are currently meeting with lenders in order to raise funds. Many lenders are interested in investing which gives the company the opportunity to attain funds are competitive rates.
the developers behind Dubai’s iconic Palm Islands and Dragon Mart, announced in February that they has a 19 per cent increase in net profits last year, which made a told of Dh4.38 billion compared to Dh3.68 billion made in 2014. The increase in profit is due to the core development activities and the company’s move towards creating long-term income generating assets, enabling the company to perform strongly.
The latter includes multiple hotel assets as the Ibis Styles at Dragon Mart was opened during this week. Another fortification is the large retail portfolio that brings in cash.
Owners at Nakheel’s communities were given 847 properties by the company in 2015. These communities include Palm Jumeirah, Al Furjan, International City, Jumeirah Village, Jumeirah Park and Jumeirah Heights. Around 9,700 units of deliveries have been inclusively tallied between 2010 and the end 2015.