Manazel Real Estate, a leading UAE developer, said its net profit rose 5.6 per cent to Dh206.5 million ($56 million) from Dh195 million the previous year mainly driven by its successful restructuring and diversification strategy.

Announcing its results for the 12 months ended December 31, 2016, Manazel said it delivered higher consolidated revenues for the period at Dh749 million compared to Dh740 million in 2015 driven by the construction progress and successful sales of 90 per cent of the Al Reef 2 project.

This success underpins the company’s business and growth strategy and with accelerated construction under way, the project is expected to deliver its first phase in 2017, stated the developer.

Diversity in the company’s projects, the support of subsidiaries’ revenues, and commercial and residential properties, have all contributed to revenue stability as part of Manazel’s long-term strategy to diversify income streams, it added.

Commenting on the results, chairman Mohamed Al Qubaisi said: "Manazel Real Estate delivered a strong performance for 2016, driven by its focused business strategy to diversify its income resources while growing revenues and effectively managing costs."

In pursuit of sustaining and optimising significant shareholder value, Manazel continues to enrich and diversify its portfolio through the development of real estate and tourism projects with Manazel recently announcing its new coastal project in Ghantoot, noted Al Qubaisi.

Also, the company has started developing its 'Manazel Medical City' project during 2017 which will have a positive impact on the company’s future performance, he stated.   

Following the successful handover of Manazel’s Al Reef development, the company focused on its Al Reef 2 project during 2016, which consists of 860 villas located in Samha, near Kizad and Khalifa Port in Abu Dhabi.

As of the end of December 2016, Manazel had sold 90 per cent its villas, demonstrating the appeal for affordable, quality homes in the UAE.

Construction work is progressing well on the project with Manazel opening its Al Reef 2 showcase villas to reveal the interior and exterior design to potential buyers.

The company has also continued fulfilling its strategy to diversify into closely aligned growth sectors with its entry into the healthcare market with its project The Manazel Medical City. The city will comprise specialised healthcare facilities leveraging the growing opportunity for quality healthcare with the roll-out of mandatory health insurance across the UAE, said Al Qubaisi.

Manazel also focused through the year in growing the recurring rental streams from its portfolio of malls/retail areas through its subsidiary and district cooling assets to ensure revenue stability for future growth, he stated.

Its subsidiaries Manazel Specialists Census International and Manazel Malls too contribute to the company’s strong financial performance over both the short and long term, he added.-TradeArabia News Service