Manazel profit up 81% to AED56.5mn

ABU DHABI / Emirates Business

Manazel Real Estate PJSC (“Manazel”), a leading UAE developer, announced its financial results for the six months ended June 30, 2017.
Manazel has continued to deliver a robust financial performance with net profit up 81% to AED56.5 million, compared to AED 31.2 million in H1 2016. Consolidated revenues for the period were up 54% to AED412 million, compared to AED267 million in H1 2016.
This strong performance underpins the success of the Company’s overarching diversification strategy with business lines now in residential & commercial real estate development, property & facility management, commercial retail management, as well as the provision of district cooling services to key Manazel developments in Abu Dhabi. Commenting on the results, Manazel’s Chairman HE Mohamed M. Al Qubaisi said: “Our strong financial performance for H1, cumulating to an 81% increase in net profits of AED 56.5 million, 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. Driven by the steady demand for domestic and regional high quality residential real estate and affordable-housing, this business is uniquely well positioned to continue its growth momentum.
We now have a proven business model in place, which is delivering profitable growth and we will continue to grow the Manazel brand into closely aligned sectors. Our successful diversification strategy combined with our entry into vibrant new markets and unique projects such as the Ghantoot Waterfront Project, via our existing and new subsidiaries has contributed to the growth of high and recurring revenues streams.
As a well-capitalised business with accelerating growth prospects, we are uniquely well positioned to diversify and build our revenue streams, delivering significant shareholder value in the years ahead”.
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 its project The Manazel Medical City Complex. Spread over approximately 73,000 sq. meters the MMC is the first fully integrated, state-of-the-art medical city in the United Arab Emirates designed to UAE and International healthcare standards. The complex will comprise of a range of specialized healthcare facilities and will leverage off the growing demand for quality healthcare services underpinned by the roll out of mandatory health insurance across the UAE.
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 which will support the on-going growth of the business over the medium and longer term.
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. Manazel Real Estate’s diversification strategy and investment in high demand projects, positions the business to deliver steady and sustained growth in the years ahead.