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R Holding and the Real Estate Investment Corporation (Reic) of Ajman have launched a new construction-linked payment schedule to ensure delivery of ‘Paradise Lakes Towers’ project by end of 2011.

“The move reflects our determination to complete the project by the new deadline, which has been approved by Arra,” said Fahad Sattar Dero, CEO, Sweet Homes Holdings.

The newly introduced payment plan will ensure that payments of installments will be made based on construction progress, which will be monitored by Arra.

Under the terms of the new payment scheme, investors of ‘Paradise Lake Towers’ will be required to continue paying the remaining construction-linked installments, which would be channeled by Sweet Homes into the project's escrow account. The remaining 10 per cent would have to be paid on handover, upon which the transfer of title deed and registration will be affected in the names of the investor or Sweet Homes Holding.

To further ensure the speedy progress on the project, the developer has now undertaken the construction and infrastructure works on eight buildings within ‘Paradise Lake Towers’, including B2, B3, B4, B5, B6, B7, B8 and B9.

‘Paradise Lakes Towers’ is a 20-minute drive from the Dubai Airport, and boasts of a 15,274 sq ft entertainment zone, and a five-story built-in parking, four high-speed elevators, a full floor of exercise facilities, a swimming pool and game area, central air conditioning, and satellite TV in all the towers.

The project is part of Emirates City, a development comprised of 92 residential and commercial towers.-TradeArabia News Service

Abu Dhabi's Sorouh Real Estate net profit edged up one percent in the first quarter from the same period a year ago, driven by the sale of its Shams Abu Dhabi plot and a rise in lease income.   

Net profit in the three months to March 31 rose to 131.6 million dirhams ($35.83 million), the developer said in a statement on Thursday, from a net profit of 130.4 million dirhams in the first quarter of 2009.

"We expect significant revenues to come through as we recognize income from the handover of units in Sun, Sky and Tala Towers during this year," said managing director Abubaker Al Khouri in the statement, referring to some of the company's projects in the pipeline.

He added that the company's earnings in the year will also benefit from a new contract with the Abu Dhabi Urban Planning Council as well as increased rental income over the next two years.

Developers across the UAE have suffered the impact of the global financial crisis which put an end to a six-year construction boom.

While Dubai has suffered the most, Abu Dhabi, home to most of the country's oil, has fared better.

In a statement, the company said the contribution of its investment portfolio to gross profit is expected to double in the short to medium term, as more rental income is derived from its developments.

Sorouh made a profit of 28.1 million dirhams in the fourth quarter and booked provisions and saw losses linked to its associates.

In January, the firm's chief financial officer Richard Amos told Reuters he was "cautiously optimistic" that 2010 will better than 2009 on land sales, and does not expect to take more provisions this year.

In March, HC Research downgraded Sorouh to "hold" from "buy" citing a strong share-price performance, as the company's under-development projects have already been priced in. -Reuters

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