The multi-million euro Palm City luxury residential village in Libya, part owned by the Corinthia, registered a €742,000 profit in its first year of operation, project managing director Reuben Xuereb said.

The finishing touches to the €150 million gated village have only been made in the past few months, yet over half the fully-furnished 413 residential units have already been rented out - most for a five-year period.

These 282 units alone will generate an annual rental value of €15.2 million.

Palm City residences are owned by Mediterranean Investments Holdings, which is a joint venture between the Corinthia Palace Hotel Company and the Kuwait National Real Estate Company.

The residential units, located close to Tripoli, range from apartments and maisonettes to villas and bungalows and are being rented out for between €2,500 and €9,500 monthly.

"We expect 95 per cent of the units at Palm City to be occupied by the end of this year," Mr Xuereb said during a press conference to inform the public about the project's performance.

Mr Xuereb outlined that construction on Palm City, located on a 171,000-square metre seaside site, started in 2006 and the first tenants moved in last June when the development was still under construction. The village offers wealthy businessmen a home away from home while in Libya, which was why it was targeted for long leases. Although residences were not up for sale, he said, there was no excluding they could be in future.

Mr Xuereb explained that most tenants were from oil and gas production companies while others were from construction and financial firms.

"In the past we had a situation where men would come and work in Libya and leave their families behind. This project caters for whole families as it contains all necessary amenities," he said.

Apart from the residential units, Palm City includes a supermarket, laundry, bank, health clinic and sports facilities.

www.palmcityresidences.com