UAE-based developer, Manazel Real Estate, reported a growth of 81% in its net profits in the first six months of 2017, to AED56.5mn as compared to AED31.2mn in H1 2016.
Consolidated revenues for the period were up 54% to AED412mn as compared to AED267mn in H1 2016. This strong performance underpins the success of the companys overarching diversification strategy with business lines now in residential and commercial real estate development, property and 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, Manazels chairman, HE Mohamed M Al Qubaisi, said: Our strong financial performance for H1, cumulating to an 81% increase in net profits, 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 also 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 projects such as the Ghantoot Waterfront Project, and its entry into the healthcare market with its project, The Manazel Medical City Complex.
Manazel Real Estates subsidiaries, Manazel Specialists, Census International, and Manazel Malls, made a significant contribution towards the companys H1 performance and this is expected to continue in the years ahead. This ongoing growth momentum has been further supported by Manazels advanced energy-efficient cooling plants, managed respectively by its subsidiaries Al Reef Cooling and Capital Cooling, and constructed for its Al Reef, Capital Mall, Prestige Towers and future developments.