Monday, June 25, 2018 2:10 PM

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Manazel reports 81% increase in Net Profit recording to Dh56.5 million for H1 2017

Manazel Real Estate, an Abu Dhabi-based property developer, reported an 81 per cent jump in net profits to Dh56.5million in the first six months of 2017, compared to Dh31.2 million in H1 2016.

Consolidated revenues for the period were up 54 per cent to Dh412million, compared to Dh267 million in H1 2016.

During 2017 the company focused on its Al Reef 2 project, which consists of 860 villas located in Samha, near Kizad and Khalifa Port in Abu Dhabi. The construction of the Al Reef 2 project has been accelerated and Manazel expects to deliver the first phase of this development in Q4 2017. Manazel continued its strategy of diversifying into high growth sectors which is highlighted by its undertaking of unique projects, such as the Ghantoot Waterfront Project, and its entry into the healthcare market with its project The Manazel Medical City Complex (MMC).

Spread over approximately 73,000 square meters the MMC is the first fully integrated, state-of-the-art medical city in the United Arab Emirates designed to UAE and International healthcare standards. The complex will comprise of a range of specialized healthcare facilities and will leverage off the growing demand for quality healthcare services underpinned by the roll out of mandatory health insurance across the UAE.

Manazel has also been very successful in growing recurring rental income which the company attributes to its portfolio of malls, retail units and district cooling assets generating stable and recurring revenue streams which will support the on-going  growth of the business over the medium and longer term.

This strong performance underpins the success of the company’s overarching diversification strategy with business lines now in residential & commercial real estate development, property & facility management, commercial retail management, as well as the provision of district cooling services to key Manazel developments in Abu Dhabi.

Manazel’s Chairman H.E Mohamed M. Al Qubaisi said: “Our strong financial performance for H1 is driven by the successful execution of our business strategy to create additional revenue streams through growing our core and  allied business lines. This expansion complements our well established real estate development business, which has a very successful track record of servicing the middle income segment. Driven by the steady demand for domestic and regional high quality residential real estate and affordable-housing, this business is also uniquely well positioned to continue its growth momentum.    

“We now have a proven business model in place, which is delivering profitable growth and we will continue to grow the Manazel brand into closely aligned sectors.  Our successful diversification strategy combined with our entry into vibrant new markets and unique projects such as the Ghantoot Waterfront Project, via our existing and new subsidiaries has contributed to the growth of high and recurring revenues streams.”

Manazel Real Estate’s diversification strategy and investment in high demand projects, positions the business to deliver steady and sustained growth in the years ahead.