Manazel Real Estate PJSC (”Manazel”), a leading UAE developer, today announced the creation of a new subsidiary called Manazel Malls, which will take operational and managerial control of Capital Mall and all retail areas in Al Reef Community and Al Reef 2 in Abu Dhabi in addition to future retail projects. The new subsidiary ensures that a dedicated professional and experienced team is now responsible for all of Manazel’s retail operations and will drive operational efficiencies and improve performance across this line of business.
The establishment of this new subsidiary supports Manazel’s business strategy with a focus on, not only capitalizing on its expertise in the property space, but also growing non-cyclical revenues through diversification into closely aligned growth sectors. Manazel Malls also strategically provides Manazel with the potential to manage retail assets on behalf of third parties within the UAE and across the wider region, and presents it with the opportunity to potentially seek a listing for this business.
Capital Mall is strategically located in Mohamed Bin Zayed City in Abu Dhabi and consists of 3 stories of premium retail space spanning more than 60,000 sqm of Gross Leasable Area (GLA). The mall is tenanted by several well-known brands, including Lulu Hypermarket, Al Manara Pharmacy, UAE exchange, Popeyes, BinSina Pharmacy, Malabar Gold & Diamonds, Axiom Telecom, McDonald’s, Ilforno, and Baskin Robins, among others. Capital Mall has also recently signed new leases with Action Zone to open a 3,000 sqm kids’ entertainment center with additional new stores in the pipeline, including Etisalat and Al Jaber Optical.
Within Al Reef Community thriving with close to 17,000 residents, the retail element of the project consists of 8,778 square meters of GLA. The existing retail offering covers a wide range of services including food and beverage and neighborhood services such as laundry, barbers, and pharmacies. Among the already operational well-known retailers are Select Market, 800 Pizza, Just Kabab, and Il Forno, and other distinguished retailers will arrive shortly, including Royal Orchid, Costa Coffee, lbn Sina Medical Center and Al Manara pharmacy.
Endorsing the success of Manazel’s diversification strategy to date, for the period ended 30 June 2015, Manazel delivered net profit of AED 45 million, up by 179% from AED 16.1 million in first half 2014, largely driven by improved margins from the sale of properties, reductions in financing costs and the appreciation of the value of investment properties.
Waleid Gamal Eldien, Manazel’s Chief Investment & Commercial Officer said:
“In line with our strategy, we are capitalizing on our expertise in the residential and commercial real estate sectors by launching Manazel Malls to manage all of our retail assets. We have built an experienced team of executives to run this subsidiary and to ensure optimal performance while driving recurring revenue streams across our real estate assets.
“We continue our steady growth by building on the momentum of our success to-date, and will remain focused on the significant growth opportunities in the new and dynamic market sectors that Manazel continues to pursue. We look forward to reporting on further developments in due course.”
About Manazel
Manazel Real Estate (MRE) is one of the UAE’s leading developers of quality homes for the country’s middle income segment of the population. Manazel with a paid-in-capital of AED 2.5 billion is a sharia complaint real estate company listed on Abu Dhabi Securities Exchange (ADX) within the segment of Private Joint Stock Company. Through strategic investments spanning residential and commercial developments, Manazel has succeeded in striking a balance between creating thriving, sustainable communities while providing the highest returns for shareholders and investors.
For further information please visit our website www.manazel-re.com.
For further information please contact:
Enquiries:
Waleid Gamal Eldien
Chief Investment & Commercial Officer
Manazel Real Estate
Tel: +971 2 4141909
Email: investorrelations@manazel-re.ae
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