Eshraq Properties is the latest Abu Dhabi property developer to post net profits for 2011, despite ongoing pressures in the capital’s real-estate market.
The developer said it made AED 7.92m after tax, reversing an AED 12m loss for the same nine months the previous year. Revenue from the sale of land for the period was AED 65m, the company stated to investors, without giving comparative figures for 2010.
Eshraq is a private shareholding company covering development, sales and construction, with a capitalisation of around AED 1bn.
Its major projects include Marina Rise, an AED 7.45bn mixed use development over almost 100ha on Al Reem Island, comprising residential and office towers along with leisure facilities. Khatib & Alami has been the consultant on the project since 2007.
The company is also developing Gateway Towers, a complex of hotels and shopping centres. The company’s financial statement indicates payments have been rolling in, as the level of receivables at 30 September is roughly half that of the previous year.
The results follow the AED144m net profit for the third quarter posted by Aldar Properties, a profit of AED460m for the nine months, and an AED83.5m profit in the third quarter for Sorouh Real Estate, developer of Sun Tower.
The Abu Dhabi construction market has witnessed a significant slowdown in activity in the last year, contractors say, with extensions to deadlines for numeours projects including the Louvre and Guggenheim Abu Dhabi museums.
Aldar and Sorouh have this year launched ‘rent-to-buy’ schemes to ease the ability for renters to own their homes as the property market continues to struggle in the wake of the financial crisis.
However, research by CB Richard Ellis earlier this year indicated that demand has been growing in the commercial requirements of the corporate sector.
“2011 is set to be a more positive year for occupier demand in the capital, although actual completion timings of key projects will go some way to determining just how good the performance can be,” a first quarter report stated.