Staff Report
Dubai, UAE;
RAK Properties, a UAE real estate developer based in Ras Al Khaimah, reported a 46 percent jump net profits to US$11 million (Dh44.60 million) in the first quarter of 2023, compared to Dh30.48 million in the corresponding period last year.
The developer also reported a 141 percent jump in Q1 2023 revenues to Dh258.58 million up from Dh107.25 million due to the launch of new projects that were selling well due to strong investor demand and handover of residential developments to owners. The company’s hospitality assets have also added significant value to revenue streams, strengthened the balance sheet and driven the appeal of Mina Al Arab as a lifestyle destination in Ras Al Khaimah.
The company succeeded in rapidly selling-out all of the released units in its Julphar Residence apartment building located on Reem Island in Abu Dhabi and has also commenced the hand-over to end users.
“Strong demand for beachfront properties in Ras Al Khaimah reflects positive investor and end-user demand for Bay Residences, located on Hayat Island, Mina Al Arab. The apartment buildings launched as part of Bay Residences Phase 1 have been fully sold out and their construction is currently underway and on schedule according to the development plan. Bay Residences Phase 2 launch received a similar response with two apartment buildings consisting of 324 apartments and 226 units has been sold so far. The piling work is completed and the recently appointed Gulf Asia main contractor has mobilized on site,” a company statement said.
Construction is ongoing for Gateway Residence 2, a 146-apartment residential building located on Hayat Island and the sales are in process. The sales programme for Marbella Villa Phase 2 comprising of 89 villas and townhouses was launched during the quarter. Construction has begun and is progressing well on schedule.
The developer successfully opened the 351-key 5-star Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA during 2022 and continues to achieve high occupancy and financials. The construction of a second 5-star Resort on Hayat Island, Anantara Mina Al Arab Hotel and Resort is on-track. The 174 key exclusive luxury resort with Maldivian style overwater villas is scheduled to open in late 2023.
Sameh Al Muhtadi, CEO of RAK Properties commented: “This set of results signals the beginning of a new phase of growth driven by our re-envisioned development pipeline. Sales from our launch of 679 units in Q1 have been driven by enthusiastic demand from end-users locally and international investors.
“We have a very exciting period coming up, with further new launches in Q2 and the second half of the year. Our primary focus is on introducing new residential developments, forging partnerships that enrich our communities and focus on transformation projects within existing locations throughout the Emirate of RAK. We remain committed to pursuing growth opportunities and investing in strategic acquisitions. With a robust liquidity position supporting us, we are strongly placed to successfully execute our long-term growth strategy.
“We are dedicated to RAK’s vision 2030 and the real estate mandate by developing destinations that feed into the economic, societal, and environmental pillars of the emirate. Against this backdrop, we will continue to deploy capital in an efficient manner across platforms to drive our transformational growth agenda.”
