Sorouh Real Estate, the second-largest property developer in Abu Dhabi, yesterday reported profits $34 million for the second quarter, a year-on-year growth of 525% from 2010 following the generation of more than $271 million in revenue from its landmark Sun & Sky Towers project.
Additionally, the developer generated earnings from numerous housing projects in the UAE, as well as rental income from its portfolio of property investments and revenue from subsidiary companies.
Talking about the company’s stronger than expected financial performance, managing director Aubaker Seddiq Al Khouri explained that “the increase in profitability has mainly been driven by us handing over Sun and Sky Towers, which is Al Reem Island’s first completed project.”
The handover, while far from complete, remains “very much on track”, with almost 150 families now already living in the Sun and Sky Towers, which was finally beginning to feel like a community, said Al Khouri.
“In addition, there has also been an encouraging demand for leasing and sales in the two towers, which we believe has been spurred by our rent-to-own innovation, which is the first offer of its type seen in Abu Dhabi,” he continued.
“By maintaining a strong delivery program and making efforts to boost our earnings we have ensured that we stay ahead of the field as the finest example of a robust business model. By continually strengthening and diversifying our streams of income, through expanding our recurring income portfolio and also engaging with the government more in housing projects, we are setting an example for others to follow.”
Al Khouri also said that, looking ahead to the final six months of 2011, the company expects to see more progress in its business profitability.
“In the long term, the case for investment in Abu Dhabi is very compelling, and we intend to continue doing so,” he revealed.