Sunday, July 12, 2009

ACI's Dubai waterfront towers on hold

The German-owned developer, Alternative Capital Invest (ACI) Real Estate, who is behind projects such as Michael Schumacher, Boris Becker and Niki Lauda towers, revealed that it plans to put on hold its developments on the Dubai Waterfront and shift investor holdings to other assets.

The affected projects are Ferretti and Pershing towers that are yet to begin construction. The company announced that it plans to shift clinet investments in these developments to towers in Business Bay, which includes the towers linked to prominent German sports figures.

The Lauda, Becker and Schumacher towers are now under construction, although they are behind schedule.

During the past couple of weeks, a group of German investors in ACI-linked funds, which financed the developments, had lodged complaint against the developer for having missed the payout deadlines. The Dubai Waterfront towers have been put on hold, as the developer is struggling to maintain investor funding, which is required for completion of current projects.

The Managing Director of ACI Dubai, Robin Lohmann, in his recent press meet, mentioned that the slowing payment left its impact on construction schedules.

"All our sites in Business Bay are under construction. But there are delays in people's payments, and we have slowed down to deal with it. When nobody pays, the construction stops, and that is the last thing we want," he said.

Out of the eleven projects underway by the company, seven were under construction, he pointed out.

No comments: