Aldar sees return to profit this year
Abu Dhabi, January 18, 2011
Indebted property developer Aldar Properties expects to return to profit in 2011, a spokesman for the company said on Tuesday confirming guidance given to investors by its chief financial officer.
'Aldar confirms the guidance given by Shafqat Malik, Aldar CFO, on an investor briefing call that took place yesterday evening,' a spokesman for the company said in an emailed statement.
The CFO mentioned in the call that the company, part-owned by Abu Dhabi government, will post profits this year and going forward.
Abu Dhabi stepped in with $5.2 billion of support for the struggling developer on Thursday, including buying some of its key assets and subscribing to a bond sale.
Malik also told investors that the company would get paid in cash in 2011 for most of its assets sold to the government and for the convertible bond sale, an investor who was on the call told Reuters.
This would allow Aldar to repay about 13 billion dirhams ($3.54 billion) in debt over the next three years, Malik told investors.
Aldar said last week that it would sell assets worth $1.49 billion to the government to meet looming debt obligations. It will also raise $2.97 billion through sales and reimbursements for some of its key assets including its Ferrari World theme park.
A government rescue for Aldar has been seen as a likely option by analysts since the property crash left the market with few private players willing to buy the developer's assets. - Reuters