Aldar Q2 net profit triples to $113.8m

Abu Dhabi, August 9, 2012

Abu Dhabi developer Aldar Properties reported a three-fold rise in its net profit of Dh417.9 million ($113.8 million) for the second quarter, compared with Dh127.3 million last year, a report said.

Aldar, currently in merger talks with rival Sorouh Real Estate, saw the revenue for the quarter at Dh4.6 billion, compared with Dh775.7 million last year, said the report in our sister publication, the Gulf Daily News.

The builder of the Yas Marina Formula One Circuit, in which state fund Mubadala has a near-majority position, said revenue was boosted by the handover of 1,058 units on Al Raha beach in the quarter, the report said.

Land on Al Raha beach, along with the Ferrari World Theme Park and other key assets, was sold to the government last year as Aldar struggled to manage its liquidity needs. The government handed a rescue fund of $10 billion in return.

Aldar said it is yet to receive Dh12 billion for three main asset sale agreements with the government made between 2009 and 2011. This includes Dh3.6 billion of revenue relating to land sales at Al Raha Beach.

"These contracted sales provide the foundation for Aldar's strong ongoing revenue and cash flow visibility over the coming quarters," the statement said.

The indebted developer announced earlier this year that it may merge with Sorouh in a state-backed tie-up that could create a company worth about $15 billion in assets.

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