Nakheel Properties

Nakheel

Type	Government owned
Industry	Real Estate
Founded	2000
Headquarters	Dubai, United Arab Emirates
Area served	87 countries
Key people	Ali Rashid Ahmad Lootah (Executive Chairman) Sanjay Manchanda (Chief Executive Officer)
Number of employees	2000
Website	www.nakheel.com

Nakheel (Arabic: نخيل‎ palms or palm trees) is a real estate developer in Dubai and creator of several land reclamation projects, including the Palm Islands, the Dubai Waterfront, The World and The Universe Islands. Its residential projects include The Gardens, International City, Jumeirah Islands and Jumeirah Lake Towers. Its shopping projects include The Dragon Mart (at International City) and Ibn Battuta Mall. Its main competitor in residential development in Dubai is Emaar Properties.

Nakheel's flagship properties are the three man-made palm tree shaped islands on the coast of Dubai. Nakheel operates under the umbrella of Dubai World, which manages various businesses on behalf of the Dubai government. The executive chairman of Al Nakheel is Sheikh Ahmed bin Saeed Al Maktoum.

Portfolio

Nakheel's portfolio of real estate include the Palm Islands (Palm Jumeirah, Palm Jebel Ali, Palm Deira), The World Islands, The Universe Islands, Dubai Waterfront, The Gardens, Jumeirah Lake Towers, Discovery Gardens, Lost City, Jumeirah Islands, Jumeirah Heights (a residential complex within Jumeirah Islands), Jumeirah Village, Jumeirah Park, Al Furjan, International City, Jewel of the Palm, The Golden Mile (which is in the trunk of the Palm Jumeirah), Nakheel International Hotel and Tower, another project on the trunk of the Palm Jumeirah, and Ibn Battuta Mall.

In 2008, Nakheel announced plans for the Nakheel Tower, which, if built, would be the world's tallest skyscraper, standing over two thirds of a mile high. The tower would take over ten years to complete and be the center of a larger development, the Nakheel Harbour and Tower. In early 2009 the tower was suspended due to the effects of the worldwide credit crunch.

The company also owned the retired ocean liner, Queen Elizabeth 2, which it acquired for $100 million and planned to convert into a luxury hotel, that was to have been moored at the Palm Jumeirah.^[1] However in January 2013 it was announced a consortium known as QE2 Shipping had been formed to own and operate the ship as a five star 400-room hotel at an unknown location in Asia.^[2]

Ownership

On July 6, 2011, Dubai World’s board of directors announced that Nakheel's legal ownership would be transferred to the Government of Dubai upon completion of the company's financial restructuring.^[3]

Financial performance

The company reported a profit for 2012 of 2.02 billion dirhams (USD 550 million) in line with a significant improvement in the Dubai property market. The profit result was a 57% improvement on the previous year. In 2013, Nakheel says it will complete 3,000 residential and retail units.^[4]

In January 2014, Nakheel announced that it would repay more than half of its’ bank debt in 2014. The Financial Times reported Chairman Ali Rashid Lootah as saying that early repayment of Dh4bn (US$1.1bn) had been made possible by "reducing claims from contractors and customers and rebounding cash collection, which has tripled over the past three years to Dh7.1bn." ^[5]

New projects

Nakheel Property Developments Near Nakheel Metro Station, Dubai

In February 2013 it was announced Nakheel would build two new projects on Palm Jumeirah at a combined cost of 3.3 billion dirhams ($902 million). The Pointe, a retail, and dining complex will be built in a bay opposite Atlantis, The Palm on the waterfront and adjacent to a new marina. Nakheel Mall will be constructed on the beach at the trunk of Palm Jumeirah.^[6] One Of Nakheel's new retail, dining and entertainment projects, The Golden Mile is said to open in April 2015, according to a statement issued by Nakheel. It will have around 70 outlets, including department stores, restaurants, cafes, medical centers and a supermarket.^[7]

In April 2013 it was disclosed Nakheel was building what it calls the Discovery Gardens Community Centre, which at that time was 35% completed. Expected to open in early 2014, the centre is effectively a shopping mall which will house 20 retail shops and 11 dining outlets. A Geant hypermarket operated by Géant Casino will occupy 40% of the centre which will service Nakheel’s Al Furjan, Discovery Gardens and The Gardens communities' 24,000 homes.^[8]

The Kleindienst group, the developers behind The Heart of Europe, a cluster of 6 islands which is a part of Nakheel's The World Islands project, revealed that they would be able to make it rain and snow using special snow machines in select streets and plazas in The Heart of Europe. This technology comes from the Frauhofer Institute in Germany, where the scientists claim it is possible to control the air outside so that it sits at 'ideal' outdoor temperature of 27 degrees.^[9]

On June 2, 2013 the company sold 350 villas in its proposed 350-hectare Jumeirah Park master community for 1.4 billion dirhams (USD 385 million) in five hours. Demand was so unprecedented, Nakheel increased the number of villas it planned to sell on the day from 226 to 350. The company announced construction tenders were yet to be finalized. The 350 villas will be completed in 2015. The Jumeirah Park master community, says the company, will eventually house 2,000 homes.^[10]

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