Dubai developer Nakheel confirmed that it has instructed the repayment of Dhs2.35 billion of bank debt, as announced in January this year.
The developer, one of the worst hit during Dubai’s property crash in 2009, was forced to undergo a restructuring in 2011, and has Dhs6.8 billion worth of debt due to be repaid to banks in September 2015.
It announced in January that Dhs4 billion of that amount would be repaid in 2014, much ahead of schedule thanks to better financial performance.
“The early payment has been made possible by delivering thousands of units to customers, ongoing cost savings achieved and the support of the government of Dubai, investors and business partners,” said Nakheel chairman Ali Rashid Lootah.
The move also highlights the strength of the growing local real estate market and improved economic conditions in the UAE, the company said in a statement.
“We continue to deliver on – and in some cases out-perform – the commitments set out in our post-restructuring business plan,” added Lootah.
Nakheel recently announced a 27 per cent hike in 2013 net profit to reach Dhs2.57 billion in 2013, with revenues up 20 per cent.
Since restructuring in 2011, Nakheel has paid around Dhs13 billion to contractors and suppliers, interest of Dhs1 billon to banks, profit payments of around Dhs1 billion to sukuk holders and saved approximately Dhs23 billion by out-performing the post-restructuring business plan, the statement said.
The company has also recommenced work on all 10 of its ‘near term’ projects, delivered around 8,000 units across various communities, expanded its retail offering and diversified into the hospitality and leisure sector, with the first hotel due to open this year.
It has also launched several new projects and currently has over 4000 units with an estimated sale value of Dhs13 billion in the development pipeline, the statement added.
The company recently revealed that it plans to launch new projects worth between Dhs6 to Dhs8 billion in 2014.