RAK Properties targets Dh300m in 2020 revenue as it plans new projects
Exclusive: The firm is eyeing new developments worth Dh350m in Ras Al Khaimah and Abu Dhabi
RAK Properties, the Abu Dhabi-listed developer, expects to reap Dh300 million in 2020 revenue and plans to start new projects in Ras Al Khaimah and Abu Dhabi to boost growth, a top executive of the firm said.
“We have two towers, which are nearing completion,” Mohamed Sultan Al Qadi, managing director of RAK Properties told The National in an interview.
“One in Ras Al Khaimah, which will be handed over in March and in Abu Dhabi in June. With these projects, we expect our revenue to almost double. We also have villas and other units to be sold.”
The developer behind the Dh10 billion master development, Mina Al Arab in Ras Al Khaimah, earlier this month said 2019 revenue climbed 90 per cent to Dh192m. However, its annual net profit slipped 33 per cent to Dh101m as land and property valuations fell.
The two properties it plans to hand over this year are Gateway Residence in Ras Al Khaimah and Julphar Residence on Reem Island in Abu Dhabi, Mr Al Qadi said.
The company aims to start the construction of two new buildings in Ras Al Khaimah this year with a total investment of about Dh200m. The company is currently in the process of tendering the project, he said.
In Abu Dhabi, the developer plans to launch a new development in the fourth quarter of this year at Mohammed bin Zayed City with an investment of Dh150m. It is also looking to construct more villas in Ras Al Khaimah as it expands its portfolio in the emirate.
“There is still demand for property in Ras Al Khaimah,” he said. “We don’t have that much of supply available [in the emirate], and the situation is much easier [there]."
The UAE property market slowed in the wake of a drop in oil prices that began in 2014 and due to an oversupply in the market. Analysts, however, forecast a recovery on the back of new government measures such as a long-term visa for investors, the Dh50 billion Ghadan 21 initiative, Expo 2020 and changes to the freehold property law in Abu Dhabi with the market rebounding in 2021.
“We came into this sort of crisis several times," he said. "I am optimistic there will be demand [on the back of government measures]. Expo 2020 will also have a positive impact,” he added.
RAK Properties is also pushing to complete hospitality projects - the Intercontinental Hotel and Resort and the Anantara Mina Al Arab Hotel and Resort. The two projects are expected to start operations next year and will add to the company portfolio that generates recurring revenue.
RAK Properties, he said, is registering demand for its properties from a wide pool of investors, especially from the UAE nationals and buyers from several Asian markets.
“We always have our own way of marketing and branding our product. We have something in the affordable housing, as well in the middle class and high-end classes," he said. "All three options are available to investors.”
Updated: February 19, 2020 02:57 PM