First Dubai, owned by Al Mazaya, profits surge by 493%

The company reported a profit of Dhs207.66m, an impressive growth of 493% as compared to the figures posted for the corresponding period a year ago.

Earnings per share increased to 93.38 fils, up from 15.85 fils last year.

Profits for the second quarter of 2008 were up 678% from Dhs19.94m reported in the second quarter of 2007 to Dhs155.1m.

Eng. Khalid Esbaitah, Deputy Chairman of the company addressed the attendees during the board meeting, which was held at the company's headquarter and attended by board members Mr Siraj Al Baker, Eng. Salwa Melhas, Mr Abdullah Al Ruwdan and Mr Mohammed Al Babteen, saying that the significant growth in profits reflects the mega projects being executed by the company, some of which have already been completed, such as the residential Sky Gardens and the Morina Residence, situated near the Gate of Shams, Abu Dhabi, on Al Reem Island.

Esbaitah clarified that the First Dubai's outstanding success in selling out the remaining stake of DIFC-based Sky Gardens to UAE firm Amlak Finance for Dhs1.65bn, has significantly contributed to the giant strides made by the company in terms of profit for the current and coming year.

Esbaitah underlined the importance of the prestigious Sky Gardens as a state-of-the-art project strategically situated in the heart of the DIFC, overlooking most of the landmarks in Dubai.

It is the DIFC's first residential tower that is ready for residents to move in, and features luxurious designs and Fendi Casa interior touches.

Aside from the substantial profits earned from the Sky Gardens sale deal, there were other projects that achieved profits, Esbaitah pointed out, and a small portion of these profits was included in the financial results of the second quarter 2008.

The remaining profits will be included throughout the current year and in the first half of next year, as these projects are being developed in accordance with a schedule and a rate of progress that will be fulfilled in the coming periods, including the five residential plots under development in Queue-Point, which have been completely sold out.

Speaking of the future projects, Esbaitah said that the company has acquired two residential plots in a prime location in Dubailand at a value of Dhs27.9m, to develop residential buildings for middle income groups, and they are expecting a Dhs69.7m ROI as a result of selling and executing the project.

According to Esbaitah's estimate, the volume of the company's real estate investment is approximately Dhs3.48bn, and it is studying new projects in order to expand, following the capital raise from Dhs307m to Dhs1.4bn, which was to fund the acquisition of plots in First Waterfront.

The Board of Directors discussed the strategy of buying these plots either through the UAE market or by acquiring a strategic stake in First Waterfront Real Estate Company, as investment in these plots will reach Dhs920m.

Esbaitah concluded by saying that First Dubai Real Estate Development Company is a new success story to be added to the series of successes achieved by Al Mazaya Holding, which has proved excellent ability in managing its subsidiary and providing the necessary training to the employees, to be qualified to shoulder the responsibilities and do the tasks assigned to them, to efficiently lead the company from strength to strength.