Local developer Nakheel made a net profit of AED362m ($97m) during the first quarter of this year compared to a loss of AED36m during the same period last year.

Revenues were AED1.352bn, up by 159 per cent when compared with revenues of AED522m during the first quarter last year. They were mainly driven by the handover of properties. Other business segments including retail and leasing also contributed positively to the results.

Cost control resulted in overheads decreasing by AED22m compared to the corresponding period in 2011. Net assets of the group increased by about AED 1bn to AED 24.5bn mainly due to the achieved profit and additional equity funds received during the quarter.

Nakheel, which restructured billions of dollars of debt in 2010, says its financial performance is “…reflective of the commitment made by the board of directors of Nakheel to implement a sustainable business strategy for the medium to long term and largely due to better cost and cash management.”

As its financial position improves, Nakheel has been able to launch new projects. In early May, it launched the Palm Views  on the Palm Jumeirah. The development will consist of two buildings, one on each side of the marina. Each building will feature 96 residential units.

In April, the developer appointed the local Dubai Civil Engineering (DCE) to build the Palma Residences, which is also on the Palm Jumeirah. The Palma Residences is a gated community comprising 104 town houses on 61,000 square metres of land off the eastern side of the island’s trunk.