Sorouh Real Estate P.J.S.C. has today announced operational net profits of AED113.7m for the first quarter of 2007. This result was built upon the strong base established in 2006 and driven by the company’s operations.
During the quarter, Sorouh achieved sales of land, villas and apartments of AED1.6 billion. This figure resulted from increased investment in sales and marketing as well as landmark deals with leading financial institutions to offer finance for purchase of Sorouh properties. One of these deals offers 97% finance for the first time in Abu Dhabi. These sales levels helped Sorouh to maintain its strong cashflow position during the quarter and will also boost profits in the future.
Assets grew by 10% over the December 2006 level indicating the continued investment by Sorouh into its various projects and the excellent progress being made towards delivery. The net cash position remained relatively unchanged at AED1.3 billion despite the investment into projects
During the quarter Sorouh awarded construction contracts valued at over AED3.3 billion. These included the main construction contract at Golf Gardens – the Emirate’s first commercial project to combine golf and real estate – and the Sky Tower, which will be Abu Dhabi’s highest tower once completed, as well as major contracts for bridge construction and for the marina and sea wall at Shams Abu Dhabi on the company’s AED 25bn flagship Reem Island project.
Construction work on all key projects continued on schedule. The tender process for the main roads and utilities package on Shams Abu Dhabi is well underway, while project work on the company’s rental villages in Khalidiya, Sas Al Nakhl (Phase1) and Al Ain were completed on schedule and very good occupation levels have been achieved.
The company remains confident that projects such as Sky Tower, Golf Gardens and Shams Abu Dhabi will be completed on time “We have chosen to work with partners who share our commitment to quality and to timely delivery’ said Chief Executive Mounir Haidar. “ This gives us great confidence that we’ll meet our commitments.”
The Chairman of Sorouh, Mr. Saeed Al Ghafly, expressed great satisfaction in Sorouh’s performance. He identified Sorouh’s strong sales performance and strong cashflow generation as key reasons behind Sorouh’s excellent results and is confident that Sorouh financial results and operational delivery will continue to strengthen into the future.
About Sorouh Real Estate
Abu Dhabi based Sorouh was established on June 26, 2005 with a capital of AED 2.5 billion. Today it is one of the largest real estate developers listed on the Abu Dhabi Securities Market with a market cap close to AED 9.7 billion. It is one of the most widely held issues with approximately 55,000 shareholders.
Sorouh's corporate vision is to "bring communities to life in perfect balance". Its real estate projects are master-planned and designed to meet the four core needs of human wellbeing: physical, intellectual, social and spiritual. SOROUH employs in excess of 120 highly qualified professionals operating in the field of master-planning and master-development.
Sorouh’s now has around AED 50Bn of projects under development. These include:
Shams Abu Dhabi, Sorouh’s flagship project is an AED 25Bn landmark development on Reem Island. A complete new city of 60,000, Shams Abu Dhabi will be self sustaining city of Canals and Parks which integrates world-class master planning practices and extends the lush green of Abu Dhabi’s landscape.
The Gate District on Shams Abu Dhabi is a cluster of 8 towers located at the entrance to Shams, Abu Dhabi. Now architecturally renowned worldwide the AED 11Bn residential, office and retail development is designed as a Gateway to the Peninsula from Reem Island. The Gate District also includes the AD 2.2Bn 74 storey Sky Tower which will be a pinnacle of luxury for its residential and commercial occupants as well as Abu Dhabi’s tallest building when completed.
Lulu Island opposite the Abu Dhabi Corniche will be the City’s most prestigious and sought after district. Housing 45 – 50,000 residents 85% of whom will have sea views this AED 14.5Bn development will be one of the most beautiful places in the entire region
Sorouh has also the Golf Gardens overlooking the Abu Dhabi Championship Course, the Abu Dhabi Aviation Authority residential project, Al-Shamkha national housing project, the Tala Tower and Saraya on the Abu Dhabi Corniche. In its first venture outside the UAE Sorouh will also be involved in developing the 7,000,000 m Sq ft Bab Al-Bahr project in Morocco.
