Tag Archives: Consumer Property

Drake & Scull announces H1 2016 Financial Results

UAE, 15 August 2016 – Drake & Scull International PJSC (DSI), a regional leader in engineering, procurement, construction and commissioning, reported its financial results for the first half of the fiscal year ended 30 June 2016.

Operational progress in Q2 2016 continued to follow the trends observed in Q1 2016, with a noted improvement in revenue and operational performance on newly awarded projects within the core UAE market and a noticeable decline in the rest of the region. Furthermore, a growing order intake in the Rail & Infrastructure as well as Oil & Gas divisions in Qatar and Iraq has helped offset a slowdown in activity in key markets such as the Kingdom of Saudi Arabia (KSA).

H1 2016 Highlights

• Extended slowdown in the construction sector has impacted H1 2016 financials adversely
• Revenue of AED 1.83 billion in H1 2016
• Net loss for the period of AED 216 million mainly attributed to project cancellations and added one-off provisions
• Total backlog stands at AED 9.37 billion as of 30th June 2016
• New project wins in Rail & Infrastructure and Oil & Gas sectors amounting to AED 570 million
• Promising outlook for the company in the GCC rail sector
• Ongoing measures to strengthen the balance sheet, optimize the capital structure, boost working capital, reduce overheads and improve operational efficiency
• Continued progress in disposal of non-core assets
• Operational restructuring resulted in QoQ SG&A savings of AED 14.2 million

Q2 2016 Highlights

• Q2 2016 revenue of AED 805 million
• Q2 2016 net loss of AED 225 million
• Total impact of project cancellations, additional one-off provisions and adjustments taken in Q2 2016 amount to AED 192 million
• Total value of project awards secured in Q2 2016 is AED 227 million

DSI reported a year on year decline of 23 % in revenue, which stood at AED 1.83 billion in H1 2016 as compared to AED 2.39 billion achieved in H1 2015. The fall in revenue is due to the significant contraction and prolonged volatility in the regional construction sector, the slow progress on ongoing projects, a decline in new project awards and adjustments across key markets in the GCC.

The net loss for H1 2016 was AED 216 million as compared to a net profit of AED 34 million in H1 2015. The loss is specifically attributable to project cancellations and more one-off provisions taken in light of the challenges in the sector. A majority of these provisions emanate from Saudi Arabia, with the total impact on the bottom line amounting to AED 192 million. These cancellations were executed by clients on individual one-off projects with minimal bearing on DSI’s ability to continue operations in Saudi Arabia and other markets.

DSI’s ongoing projects order backlog stood at AED 9.37 billion as of 30 June 2016, as compared to AED 13.24 billion in H1 2015. The decline in the projects’ backlog reflects the adjustments carried out in Q2 2016 pertinent to project cancellations in KSA.

Despite the slowdown in the regional project awards, DSI managed to secure AED 570 million worth of new project awards year to date including the AED 343 million Doha Metro Depot and Stabilising Yards contract as well as the AED 227 million Zubair Oil Field project in Iraq. These key wins further reinforce the company’s strategic decision to concentrate on sector-specific, core engineering projects with high operating margins.

DSI has also remained on track with its cost-reduction programme which will improve operational efficiency and cut overheads. The company has implemented a number of measures and initiatives to optimize its capital structure, including the sale of non-core assets to generate cash and improve liquidity. The cost-reduction programme is progressing on schedule and is expected to realize significant cost savings by the end of 2016.

Commenting on the results, Khaldoun Tabari, CEO and Vice Chairman of Drake & Scull International PJSC, said: “Our financial results have been impacted due to the substantial provisions for project delays and cancellations over the last six months, brought on by clients principally based in Saudi Arabia. We believe that these developments show the considerable challenges we have faced across the region due to a very challenging macro-economic environment.

We are in the process of embarking on a new strategy to reposition ourselves as a leader in the market. We will also initiate fundamental changes to our group and leadership structure which will be supplemented by a reorganization and realignment of senior management roles as part of our efforts to enhance and streamline our operative framework.

Despite the challenges, our business remains operationally and financially robust. Due to our longstanding partnership with major international and local banks, we continue to retain strong lines of credit and secured access to funding to deliver our ongoing projects backlog. We remain committed and focused on running efficient, low-cost and sustainable and cash generating operations and are confident about the medium- and long-term prospects of the regional industry.”

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Dubai real estate B2B conference eyes a big push

By Anitha Lakshminarayanan

Dubai’s real estate industry is poised to attract more growth in the next few years, with industry experts saying that the emirate’s property market fundamentals remain stronger than ever. Looking to play a crucial role in the continuing growth of the industry, Real Events, the newest and fastest-growing events management firm operating throughout the UAE and the greater Gulf region, will be hosting the first edition of ‘Dubai Real Estate B2B,’ a conference that aims to connect potential investors with the emirate’s industry leaders, which will be held on October 15 to October 16, 2014 at The Ritz-Carlton Dubai Marina. The event is being organized under the theme, ‘All questions answered’ and will serve as a strategic platform that will help these potential investors make a smooth entry into Dubai’s thriving real estate market.

According to Real Events, the event will be graced by senior level government officials and will feature 15 presenters from the United Arab Emirates and 30 exhibition stands from industry representatives like mortgage advisers, local bank officers, real estate developers, property consultants, real estate attorneys, tax specialists & auditors, private-equity fund manager and, management consultants. Aside from its move to bind international investors with Dubai-based real estate experts, the exciting two-day event will also include key discussions and round tables focusing on important industry issues and topics like newly implemented regulatory measures, issues on brokerage, lease contracts, registration and certification, duties and compliance; assessment of the Dubai Real Estate Market for 2015 and Beyond; buying properties off-plan; Wealth management and zero taxation.

“These are truly exciting times for Dubai’s real estate industry, which continues to show its vibrancy in the large number of projects that are currently ongoing and the even larger projects that are in the pipeline,” said Julia Zajak, General Manager, Real Events. “As industry experts are forecasting continuous growth and have placed high-confidence in the projects present today, we are proud to organize the first edition of Dubai Real Estate B2B, a conference that aims to give potential investors the necessary information they need to enter the emirate’s real estate market. This event will serve as a key venue to help international and local brokers and their clients meet mortgage providers and banks for non-residents investors.”

Dubai Real Estate B2B Conference will host more than 250 participants from Russia, United Kingdom, India, Kazakhstan, United States of America, Pakistan and Africa; and a thoughtfully planned out a series of activities that aims to live up to its chief goal of providing foreign investors with the essential information and guidance on pursuing real estate opportunities in Dubai. One of the highlights of the event will be a guided tour of some of the emirate’s current development projects—complete with an opportunity to meet face-to-face with project developers, which will allow them to develop a comfortable feel of the area and the guarantee that all their questions will be answered.

“This event is just the first of the many initiatives that we are set to organize in order to drive in more potential foreign investors in Dubai, particularly across the rapidly thriving real estate segment. Rest assured that we will remain steadfast in our commitment to encourage growth and diversity, while at the same time look towards consolidating our ties with other companies in the international real estate community. We look forward to seeing you all at Dubai Real Estate B2B Conference, “concluded Zajak.

Please contact Anitha Lakshminarayanan-freelance writer (writer for Gulf News), Freelance Journalist at anithaideas@gmail.com for covering an event, public relations writing, conducting interviews or advertising on this blog or to know more about my writing-visit http://anithaideas.com/

Tanmiyat Group fast track their living legend project in Dubai land.

BY Anitha Lakshminarayanan
Tanmiyat Group, a Saudi investment company and property developer fast track their AED 4 billion living legends project in Dubai land that was launched in 2006 before the global economic crisis that hit in 2008. And Plan to handover villas in the middle of this year.

Mr.Mohammed Bin Odah,CEO of Tanmiyat Group
Mr.Mohammed Bin Odah,CEO of Tanmiyat Group

“About 60-75% of the project is over and in the middle of this year, will hand over our villas. Phase-I concrete work is completed, and the infrastructure including the street lights are already done” said Eng. Mohammed Bin Odah, CEO of Tanmiyat group to Emirates Property-what’s your property cravings.

Located in Dubai land with a built up area of 6 million square feet, the project comprises of 500 villas,12 towers with 2200 apartments, three office buildings, a mall, three schools and a hotel overlooking the golf course.

He added “we will be attaching solar heaters to every villa of living legend and recently made an agreement with a district cooling company”.

IMG_0731
Tanmiyat showcasing their living legend project at a consumer property event in Dubai

As Dubai continues to recover with soaring property prices over the last two years, several stalled projects are back on track since then. Another cause for the spike in the real estate prices could be Dubai’s win of the expo 2020 bid.

Living Legends Project
Tanmiyat showcasing their living legend project at a consumer property event in Dubai

Eng.Odah said “After Dubai’s win of the expo 2020 bid, the response has been very good, and customers take initiatives to do their bookings and pay money. Now is the best time for those who have invested during the crisis, and now they can benefit from the yield as the appreciation is more”.

Dubai has a mixed bag of investors from all over the world and is well-known for its multicultural background. Now the market has matured to help the end-user and the regulations are in place. RERA(Real Estate Regulatory Agency of Dubai) has addressed the key issues such as the credibility of the developer, flipping, and with the wake of registration fees from 2% to 4% this year; this sector is easier to operate especially to end-users.

Mr.Odah urged “About 108 nationalities have invested in our project. Now it’s a regulated business wherein you cannot start selling if you do not give a bank guarantee of 25% .It builds confidence and Benefits the consumer”

“After central bank had approved, we signed an agreement with Al Noor Bank and two more banks are there in the pipeline. The funding from the banks helps us a lot as they collect money from the consumers once we start delivering the units to them”.

He concluded “At the moment,we are focusing on delivering the units this year and the project is 70% complete”

Anitha Lakshminarayanan

Please contact Anitha Lakshminarayanan-Freelance  Journalist at anithaideas@gmail.com for covering an event,conducting interviews or advertising on this blog or to know more about my writing-visit  http://anithaideas.wordpress.com/

Pacific Ventures begin sale of Phase-II of their signature apartments project ‘Burj Pacific’

IMG_0699Face to face with Mr.Miguel Guadalupe, Chief Operating Officer at Pacific Ventures

By Anitha Lakshminarayan

Burj Pacific sold its lower floor at the time of the announcement of the Phase-I launch last year and the higher floors are ready to be sold after Phase-II launch.

Dubai, UAE: Pacific Ventures, Indian Real Estate Company begin sale of their signature apartments Burj Pacific in downtown, Dubai after a formal launch of Phase-II at Emirates Towers  on the 8th and 9th of March.

“We recorded DHS 79 million worth of sales during the pre-launch of Phase-I of Burj Pacific,” says Mr. Miguel Guadalupe, Chief Operating Officer of Pacific Ventures to Emirates Property-what’s your property craving in an Interview.

He added “Within two months the ground floor will be ready; we have approved the contractor and will officially announce the name of our contractor for Burj Pacific after we get the approvals from Rera for our Pacific Village project in Dubai land located along the city of Arabia theme park”.

Real estate in Dubai is moving forward, and the trend is likely to continue this year and apartments dominate the demand in the property market of Dubai; however, there is a slight shift in focus as there is an increase of  20%  in the supply  of villas  this year.

Mr. Guadalupe  said “Pacific Ventures earlier projects include: Jumeirah village triangle and Jumeirah village circle which we bought from other developers are partly sold though we don’t advertise about them since they are easy to sell especially studio, and one bedroom move faster  in Dubai  although high-rises or 22 storey buildings like the Burj Pacific with more than 160 apartments or big communities need attention of how we can make the public aware about new concepts.As a business, we run in a very customer-friendly way and take our consumers to the site, update them about the progress of the project and  the marketing team sends them pictures of the development on a regular basis”.

As per Jones Lang La Salle,the property company there is more development towards central as well as in the south of Dubai and Jebel Ali.

Mr.Migeuel also said “ Many of the people working in Downtown, Dubai,plan to move into other areas such as Sport city, Studio city, Jumeirah Village triangle, Arabian Ranches and nearby locations which are also beautiful to live and they take a nice hike,by driving to work”  .

Indians top as  Property Investors of UAE

“It’s been more of an end-user business this time around and helps us as a more regulated market; the government is more involved and for the end-user, it’s more real now”.

“As everybody knows Indian community is the number one investors in the UAE closely followed by the Pakistani community and Russians are third. Indian community is big in the UK, Ireland and other parts of the world; they buy a property for investing as well as to gift homes for their kids”.

He concluded “we are going to stay residential now while we build quality, good size units and make it affordable which start from 1.3 million for 1 bedroom, 2 bedrooms is 2.4 million depending on the size.1 bedroom size are usually 1000 square feet; 2 bedrooms are 2000 square feet, and 3 bedrooms are close to 3000 square feet and  maybe 4 or 5 years later, we might look into mixed-units”.

Anitha Lakshminarayanan

Please contact Anitha Lakshminarayanan-Freelance  Journalist at anithaideas@gmail.com for covering an event,conducting interviews or advertising on this blog or to know more about my writing-visit  http://anithaideas.wordpress.com/