Aldar H1 results boost confidence in Abu Dhabi market
Abu Dhabi's construction sector may have partially side-stepped the economic slowdown that has decimated neighbouring Dubai's housing market, but it has witnessed slowdown and cancellations. Which makes Aldar's results for the first half of 2009 encouraging. The local developer, which is currently delivering a number of key anchor projects for the emirate including Al-Raha beach, Yas Island and F1 City, has announced a net profit of Dhs1.14bn.
United Arab Emirates: 2009-08-17 13:33:50
Net assets value grew by 5% to Dhs16.8bn during the past six months, whereas gross revenue for the period was Dhs1.1bn.
Despite the seemingly positive results, Aldar did allude to the challenging market conditions.
While developments under construction have increased by 44.8% to Dhs33bn, during the first half of 2009 no land sales have been achieved.
The report states that Aldar 'is in negotiations relating to the sale of land plots but the challenging market conditions have extended the negotiation period.' However it stresses that the firm is confident in Abu Dhabi's real estate market. This, it claims, is 'further demonstrated by not rushing to complete any sale that undervalues its assets.'
Ahmed Ali Al Sayegh, chairman of the board of directors of Aldar, said, 'These figures present a financial picture showcasing the resilience and underlying financial strength of the Aldar business model. All shareholders and stakeholders can have confidence in the progress that has been made and the successful bond issue during the period is testament to the ongoing support for our vision.
Aldar milestones
'I would particularly like to applaud the huge effort that has gone into the first half of the year. It will be rewarded in the second half when a number of major milestones will be reached. This will include the completion of the Yas Marina Circuit for the first Formula 1 Etihad Abu Dhabi'.
Other operational highlights include the launch of the Yas Hotel, the first hotel to be operated by Aldar Hotels and Hospitality and one of seven hotels operating on Yas Island for the Abu Dhabi Grand Prix in November. Four buildings in the Abraj Towers project were also handed over to the tenant during the period, and 381 villas in Al-Raha Gardens project were also completed and handed over.
It has not just been economic forces that have caused difficulties. Just last month, Aldar announced it had appointed US-based Turner Construction International to replace its joint venture partner Aldar Laing O'Rourke as the project manager on the Dhs52bn Al-Raha Beach project. An Aldar spokesman said the agreement was ended by mutual consent.
The development was launched earlier this year at the Cityscape Abu Dhabi exhibition and is to provide 5,000 homes for UAE families, as part of the Abu Dhabi Government's housing initiative.
Key cultural projects
Elsewhere in Abu Dhabi, work continues to progress, albeit slowly, on the iconic projects. Abu Dhabi Tourism Development & Investment Corporation (TDIC) has announced that it plans to finalise the prequalification list for the contract to build the Louvre Abu Dhabi museum on Saadiyat Island by late August.
The Louvre is one of five cultural institutions planned for Saadiyat Island's cultural district. The others are the Sheikh Zayed National Museum, the Guggenheim Abu Dhabi Museum, a performing arts centre and a maritime museum.
TDIC selected Germany's Bauer to carry out enabling works on the project in mid-July. The UK's Buro Happold is the engineer, France's Jean Nouvel is the architect.
Earlier this month, TDIC awarded a Dhs1bn contract to Australia's Multiplex to build the Eastern Mangrove resort in Abu Dhabi. TDIC is developing the 223-room resort, which also has a five-star hotel with conference facilities, shops and 29 apartments. The resort is expected to open in the first quarter of 2011.
