It is with a great degree of satisfaction that I can share Manazel Real Estate’s successful business story of the past year with you, as our journey has been characterised by growth in profitability, brand value and operational excellence. Despite the generally challenging year and changing market dynamics, Manazel continued its strong performance as we recorded full-year net profit of AED 220.6 million, marking a 6.8% increase compared to the previous year. Our successful overarching diversification strategy, combined with our entry into vibrant new markets and unique projects, have all contributed to the solid growth of recurring revenues streams and earnings.
Following the success of Al Reef 1, which now houses 17,000 residents, Manazel continued to cater for the increasing demand for middle income housing through the development of residential communities such as Al Reef 2; which has been very popular amongst property investors with 95% of all units now sold. Manazel also continued to diversify into high growth sectors by undertaking unique developments, such as the Ghantoot Waterfront Project, which was recently launched as one of the biggest real estate projects in the tourism sector in the country.
Manazel Real Estate’s subsidiaries and retail operating arm, Manazel Specialists, Census International and Manazel Malls, made a significant contribution towards the Company’s robust performance; and this is expected to continue in the years ahead. Added to this during the period, the Company also entered into a strategic partnership with McARTHUR + COMPANY to lease and manage “Capital Mall” on behalf of Manazel Real Estate in Abu Dhabi, reinforcing Manazel’s long-term strategy of developing recurring revenues.
Recently, Manazel Real Estate signed a co-development agreement with Tasameem Real Estate to develop three new projects in Yas Island, Dubai Silicon Oasis and Jumeirah Village Triangle (JVT). With a cumulative investment exceeding AED 500 mn .the projects are expected to positively contribute to the firm’s existing portfolio, currently comprised of residential, commercial, retail and district cooling assets, to name a few, while also driving its strategy of growing the core development business line. This move is part of a series of discussions being held with other investors for co-development projects in the UAE, South Africa and the Region.
Over the past year, we have also announced our strategic entry into new sectors such as healthcare through the planned “Medical City” announcement. This is part of our strategy to diversify the company’s real estate projects and revenue streams the “Medical City” development will allow us to expand our presence into the UAE’s healthcare sector. We also plan to build schools across our residential developments in the UAE, in order to utilise the land we own more strategically and offer fully integrated residential environments whilst investing in the country’s education sector.
We are also actively exploring a range of opportunities to expand our business into markets outside of the UAE. In this context, “Manazel Amman” in Jordan has been progressing very well and we plan to expand further into the wider Middle East and North African markets. We have taken this decision given the significant demand for middle income housing segment in countries that have a high population density in particular Saudi Arabia, which Manazel plans to enter through targeted developments in due course. Entering into such markets will allow us to capitalise on untapped value and support the growth of our real estate portfolio, which in turn will broaden our revenue base and ensure that we deliver returns to investors.
On behalf of the Board and management, we would like to thank you for your continued support of Manazel Real Estate. For 2018, we remain committed to delivering significant shareholder value and this is underpinned by an ongoing strategy, which involves looking into value enhancing investment opportunities.
Our current business model, strategy and increasing market opportunities, all indicates that the Company is uniquely well positioned to deliver steady long term growth in the years ahead and I look forward to reporting on further success.
Mohamed M. Al Qubaisi