The company behind Legoland Dubai expects to generate Dh2.4 billion in its first year of operations and create 5,000 new jobs.
Dubai Parks and Resorts is developing related theme parks in Jebel Ali which include Motiongate Dubai and Bollywood Parks Dubai that are expected to open in October 2016. The resorts are forecast to attract 6.7 million visits during the first full year of operations.
Dubai Parks and Resorts, a unit of Meraas Holdings, reported an annual loss of Dh21 million for 2014 on Thursday, compared with a loss of Dh13m for 2013. The company’s total asset base grew to Dh6.88bn at the end of December.
“Our project is well underway and making good progress against our plans,” said Dubai Parks and Resorts chief executive Raed Al Nuami. “By year end, we had completed over 50 per cent of the resort wide roads and utilities infrastructure and 100 per cent procurement of all theme park rides.”
The operator will invest Dh10.5bn in the resorts, which will occupy 25 million square feet of land located off Sheikh Zayed Road in Jebel Ali.
The resorts are part of Dubai’s 2020 vision, which seeks to attract 20 million tourists a year to the emirate by 2020.
Dubai Parks and Resorts last month announced that it had commenced construction for the Dreamworks’ zone, a 730,000 square foot area housing twelve attractions and rides, which will form part of Motiongate Dubai.
The company secured a Dh4.2 billion finance facility, arranged by Goldman Sachs, in November, and raised Dh2.5 billion via a share offering on the Dubai stock exchange in December.
Meraas has promised to fund any cost overruns for the park’s construction through interest-free shareholder loans.
Despite being six times over subscribed, Dubai Parks and Resorts shares suffered after debuting on the Dubai stock exchange during a major market sell-off, which saw the bourse’s headline index fall by 12 per cent in December. The company’s share price has lost about a quarter of its value since listing.
Its shares fell 2 per cent to 75.2 fils yesterday.
jeverington@thenational.ae
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