Manazel posts 81pc increase in H1 net profit

Manazel Real Estate, a leading UAE developer, today reported a net profit increase of 81 per cent to Dh56.5 million ($15.38 million) for the first half of this year, compared to Dh31.2 million ($31.2 million) in H1 2016. Consolidated revenues for the period were up 54 per cent to Dh412 million ($112.17 million), compared to Dh267 million ($72.68 million) in H1 2016. This strong performance underpins the success of the company’s overarching diversification strategy with business lines now in residential and commercial real estate development, property and facility management, commercial retail management, as well as the provision of district cooling services to key Manazel developments in Abu Dhabi, said a statement. Manazel chairman 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," he said. 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 the Manazel Medical City Complex (MMC). Spread over approximately 73,000 sq m, the MMC is the first fully integrated, state-of-the-art medical city in the UAE designed to the UAE and international healthcare standards. The complex will comprise a range of specialised healthcare facilities. 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. Manazel Real Estate’s subsidiaries Manazel Specialists, Census International and Manazel Malls, made a significant contribution towards the company’s H1 performance and this is expected to continue in the years ahead, the company said. This ongoing growth momentum has been further supported by Manazel’s advanced energy-efficient cooling plants, managed by its subsidiaries Al Reef Cooling and Capital Cooling, it said