Al Mazaya posts profit after exiting Dubailand

The Kuwaiti developer and investment company Al Mazaya Holding was back in the black last year after exiting some of its most troubled Dubai property holdings.

The company, which lists its shares in Dubai and Kuwait, yesterday announced a 290,000 Kuwaiti dinars (Dh3.72 million) net profit for last year - its first since 2009 following losses of 15.8m dinars in 2011 and 9.6m dinars in 2010.

Revenues at the company increased to US$135.1m (Dh496.2m).

Al Mazaya, which invested heavily in the stalled Dubailand district before the global financial crisis, said that it had sold its stake in its Dubailand fund, which held 492 residential units last year, for Dh49m. It added that it had also sold the flats it had developed in its AA1 Tower in Jumeirah Lake Towers for Dh51m and was looking to sell the office element of 11,231 square feet.

Al Mazaya added that it had acquired a 28 per cent share in a fund holding a 6,378 square metre plot of land in Muscat for $2.4m.

At a board meeting in Kuwait City, the Al Mazaya Holding chairman, Rashid Al Nafisi, said the company had succeeded in meeting "a large part of its financial obligations towards companies, investors and individuals", as debts to local banks fell from $175.4m and total assets rose to $784.6 m.

The company said that its property portfolio was worth $597.2m including $72.5m in empty plots and $91.5m worth of properties that were intended to be launched for sale or rent purpose.

It added that 40 per cent of its portfolio - $239.8m - was generating income with rental revenues rising from $5.7m in 2011 to $10.1m last year.

Mr Al Nafisi said the company was exploring regional investment opportunities. He added that the company was conducting feasibility studies on developments "through real estate alliances and different investment structures".