Aldar Properties plans to launch a new mega development in Abu Dhabi “very soon”, group chief financial and sustainability officer Faisal Falaknaz told reporters.
His comments came as the company reported a 24 per cent annual jump in its first-quarter profit after revenue rose during the period on the back of higher home sales.
Mr Falaknaz said the “big master plan” would be launching and “coming out to the market very soon”.
He did not provide further details but said the company would continue to launch new projects despite the recent war in the region. “We plan to continue launching … the plan has not changed,” he said.
The company also aims to unveil a new mega development in Dubai this year after buying two plots of land near Nad Al Sheba and Palm Jebel Ali in partnership with Dubai Holding, Mr Falaknaz added.
About 14,000 new homes are expected to be built at the two new developments in Dubai with a gross development value of more than Dh38 billion, Aldar said in February.
Abu Dhabi's biggest listed developer reported strong first-quarter financial results on Tuesday.
Net profit attributable to equity holders of the company for the three months to the end of March climbed to Dh2.04 billion ($555.1 million), the company said in a bourse filing on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue during the quarter increased by 12 per cent year-on-year to Dh8.7 billion, with the company recording total group sales of Dh6.7 billion for the period.
There was also sustained demand among international buyers, with UAE sales to overseas customers and residents reaching Dh5.3 billion in the first quarter, representing 88 per cent of total UAE sales.
However, total UAE sales decreased 30 per cent annually to Dh5.9 billion, reflecting “moderated launch activity”. Two projects, The Wilds Residences in Dubai and Baccarat Residences on Saadiyat Island in Abu Dhabi, were launched in the first quarter.
Development backlog revenue rose to Dh72.1 billion, including Dh62.2 billion in the UAE, providing “clear visibility on revenue recognition over the next three years,” according to the company.
Well-funded for investments
The company is also “well funded,” Mr Falaknaz said, with Dh38 billion of committed, untapped bank facilities and other modes of financing available to launch new projects.
“We are extremely liquid and are sitting on a good amount of cash to continue investing in our growth story,” he said.
Aldar launched new projects and announced new acquisitions recently. These include the purchase of Dh650 million worth of logistics assets from Khalifa Economic Zones Abu Dhabi (Kezad), and the acquisition of The Link at Masdar City for Dh654 million in partnership with Mubadala Investment Company.
The company also unveiled plans to build 9,000 new affordable homes for rent in Abu Dhabi, valued at Dh2.8 billion in Baniyas and MBZ City, to boost its portfolio.
“Underlying demand fundamentals remain robust, reaffirmed by the very successful recent launch at Yas Park Place,” said Aldar chief executive Talal Al Dhiyebi in a statement.
“This supports our view that demand remains resilient for the right product, underpinned by a structurally undersupplied market in Abu Dhabi and strong long-term economic fundamentals.”
Aldar sold 80 per cent of the homes released at Yas Park Place, its new mid-rise residential community at Yas Island, with the company recording more than Dh800 million in sales.
Last year, Abu Dhabi's property sector performed strongly, with the value and volume of real estate transactions rising due to continued economic growth and diversification strategies.
The total value of transactions rose 44 per cent on an annual basis to Dh142 billion, while the volume climbed 52 per cent to 42,814, the Abu Dhabi Real Estate Centre (Adrec) said earlier this year.
