United Real Estate Company announces net profit of KD 3.5 million for the H1 of 2014
United Real Estate Company (URC), the MENA region’s leading real estate developer announced its results for the first half of 2014, achieving a net profit of KD 3.5 million and an operating profit of KD 8.2 million.
URC’s Chief Executive Officer, Engineer Mohammed Ahmed Al Saqqaf commented on these results saying, “We began the year with an aim of accomplishing the objectives outlined in our Strategy Report for 2014. Accordingly, we managed to eradicate any assets in our real estate portfolio without a real intrinsic value, as recently carried out in Qatar. Additionally, our total revenue increased by 11% to reach KD 22.8 million, for the first half of 2014, as opposed to the same period in the previous year. This was driven by a rise in our contracting and services revenue through the bids awarded to our subsidiaries in the project management, construction management and facilities management industries, UBC, KUCM and UFM, respectively. This result fulfills our other strategic objective for the year, which was to gain more independent third party contracts from our operational subsidiaries.”
Furthermore, during the second quarter of this year, URC distributed 8% in cash dividends, which were approved during the company’s annual general assembly meeting held in April, for a total amount of KD 8.6 million. In addition to achieving sound financial results, URC engaged in a number of sales and marketing projects and continued to develop its Corporate Social Responsibility (CSR) programs through several initiatives organized this year. The company participated in two real estate exhibitions on both a local and on an international level, including ‘MIPIM’, one of the most prominent international real estate events held annually in Cannes, France.
URC’s real estate development performance continued to be recognized this year by international publications such as MEED, where its latest retail and hospitality development in the Sultanate of Oman, “Salalah Gardens Mall & Residences”, was selected as the National and GCC “Leisure & Tourism Project of the Year”, at the 2014 MEED Quality Awards.
URC has several projects under development in the region, including ‘Abdali Mall’ in Amman, Jordan. The project is the retail and entertainment center of the 1.8 million square meter mixed-use development in Amman, known as the Abdali Urban Regeneration Project (AURP), or “Abdali”. Part of the master development is ‘Abdali Boulevard’, which was recently inaugurated under the patronage of His Majesty King Abdullah II Bin Al Hussein in June of this year. Abdali Mall is a unique shopping mall, which utilizes advanced technology and includes a variety of sustainability features such as facilitating the reduction of water and energy use. The mall also includes an eleven-screen cinema, local and international brands, a food court and supermarket, spread over five floors covering an area of over 227,000 square meters. The mall’s expected completion is in the third quarter of 2015.
‘Aswar Residences’ is another project currently under development by URC which consists of a gated residential community of 75 villas in the emerging area of New Cairo, Egypt. Each three-story villa includes a private garden and basement parking, where community amenities include landscaped gardens with walking paths, a gymnasium, tennis court, kids play areas and an outdoor swimming pool. The project is expected to be completed in the fourth quarter of 2014.
Demonstrating URC’s reach across the MENA region, “Raouche View 1090” is URC’s upscale residential building in Lebanon, located directly in front of the famous Raouche rocks. The development is expected to be completed in the fourth quarter of this year and utilizes modern technologies and an aesthetic design to create an exclusive, luxurious development. Lastly, despite being in its early stages of development, URC’s ‘Junoot’ project in Shuwaimiyah, Oman has won numerous international awards for its unique sustainability and earth architecture approach.