Fire-ravaged Address Downtown to reopen by end 2017

February 15, 2017 10:30 am


Dubai’s Emaar Properties intends to reopen its landmark Address Downtown hotel by the end of the year, some two years after the skyscraper was gutted by fire following an electrical fault, its chairman told Al-Arabiya TV on Tuesday.

Mohammed Alabbar was speaking after the developer reported a 56 percent rise in fourth-quarter net profits, boosted by higher revenue from property developments as well as the performance of its malls and hospitality businesses.

In a statement detailing its earnings, the company didn’t mention the impact on its results of the 1.22 billion dirhams ($332 million) it was due to receive from an insurance claim for the Address Downtown fire.

ALSO READ: Dubai’s Emaar to recover $332mn for hotel fire insurance claim

The firm said on Feb. 6 the insurance payout would result in a writeback of the 301 million-dirham provision it made in its 2015 results against the costs of the fire and would be recorded as income in the quarter ending Dec. 31 2016.

On Tuesday the company, in which Dubai’s government owns a minority stake, reported a net profit of 1.61 billion dirhams for the quarter, up from 1.03 billion dirhams in the same period of 2015, while revenues were up 16 percent at 4.44 billion dirhams.

SICO Bahrain forecast Emaar would make a quarterly profit of 1.32 billion dirhams while EFG Hermes had forecast 1.64 billion dirhams.

Last year the developer started construction work on The Tower at Dubai Creek Harbour, which when complete in 2020 is set to be the world’s tallest tower. The project is a joint venture between Emaar and Dubai Holding, the investment vehicle of the emirate’s ruler, Sheikh Mohammed bin Rashid Al Maktoum.

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Reuters
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