Development of the Middle East’s largest multi-themed leisure and entertainment destination on track for launch in October 2016
As at 31 December 2014, the Company had not started its commercial operations; consequently there is no operating revenue during the period.
H.E. Abdulla Al Habbai, Chairman, Dubai Parks and Resorts, said, “Dubai Parks and Resorts will capture the significant growth opportunity represented by creating the Middle East’s first premiere year-round leisure and entertainment destination. Strong demographic growth and favourable economic conditions within the UAE and the wider region will drive strong local demand for Dubai Parks and Resorts. In addition, Dubai’s location and world class tourist infrastructure will support the project’s growth strategy. We are pleased with the progress achieved by the leadership team since announcing the project in September 2014 and look forward to the year ahead.”
Raed Al Nuami, CEO, Dubai Parks and Resorts, commented, “We have made considerable progress since officially announcing our plans to create Dubai Parks and Resorts. We have secured the financing to fund the construction of what will become the Middle East’s largest multi-themed leisure and entertainment destination through an AED 4.2 billion finance facility and AED 2.5 billion of equity raised in our December 2014 DFM listing.”
“Our project is well underway and making good progress against our plans. We have signed agreements with some of the world’s leading leisure and entertainment brands which will enable us to bring world-class experiences to our visitors. We also signed operator agreements with Parque Reunidos Servicios Centrales, Merlin Entertainments plc and the Marriott Group. By year end, we had completed over 50% of the resort wide roads and utilities infrastructure and 100% procurement of all theme park rides.”
“We are excited about the potential growth opportunity of Dubai Parks and Resorts. As the Middle East’s premiere year-round leisure and entertainment destination, we will meet the growing domestic and international demand for a differentiated, multi-themed park destination experience. We will have considerable opportunity to capture value through ticketing, hotels, retail and sophisticated destination management by our experienced team of leisure park management experts. Projected revenue in the first full year of operation is estimated at AED 2.4 billion with over 5000 jobs generated across the sector”.
“Our 2014 financial results are in line with our plans. During the year our total assets grew to AED 6.9 billion and of which the cost of project under construction and land acquired amounted to AED 2.6 billion, an increase from AED 340 million. There were no operating revenues during the year and the accumulated loss was AED 38 million as at the end of 2014. The first revenues are expected towards the end of 2016 following the opening of the parks to the public.”
“We expect to report our audited financial results for the twelve months to 31 December 2014 in the first week of March 2015 following the planned Board of Directors’ meeting which is scheduled for 1 March 2015”.
For further information please contact:
Marwa Gouda, Head of Investor Relations, Dubai Parks and Resorts
Jon Earl, Managing Director, FTI Consulting
About Dubai Parks and Resorts PJSC
Dubai Parks and Resorts PJSC (DFM: DUBAIPARKS), will become the Middle East’s largest multi-themed leisure and entertainment destination comprising three separate theme parks: motiongate™ Dubai, a Hollywood movie inspired theme park concept; LEGOLAND® Dubai, the first LEGOLAND® theme park in the Middle East; and Bollywood Parks™ Dubai, a first-of-its-kind entertainment destination that will showcase the authentic Bollywood movie experience.
The development will also host Lapita™ Hotel, a four star themed hotel which will be managed by the Marriott Group, and Riverland™ Dubai (formerly Riverpark), a 220,000 square feet complementary and centrally located retail, dining and entertainment district connecting the three theme parks and hotel.
Set to open in October 2016, the large-scale AED 10.5 billion project is spread across 25 million square feet of land strategically located on Sheikh Zayed Road close to the Palm Jebel Ali between Dubai and Abu Dhabi. 6.7 million ticketed visits are expected in 2017, the first full year of operation.