Monday, September 07, 2009

Nakheel offers consolidation option to investors on deferred projects

Nakheel, the real estate arm of Dubai World, has offered an investor with an option of consolidating his investments in The World, for plots in Jumeirah Village, Palm Jumeirah, or the Marina Residence Properties.

The Dubai-based developer and broker, Silver Heights, revealed that Nakheel has offered replacement properties, worth about Dh.26million, in exchange for its investment in The World Island.

The Managing Director of Silver Heights, Samir Ahmed Munshi, said after purchasing the Dh.153m worth Island 86 in The World, by paying an initial 15 percent down payment on the land, which totally amounts to Dh.23million, the company then decided to withdraw its investment, due to the real estate sector slump.

But, Nakheel asked Silver Heights to pay an additional Dh.3mn and offered plots on Jumeirah Village, Palm Jumeirah or the Marina Residence, Samir Munshi said.

Munshi revealed that he has decided to take over four plots on the Palm Jumeirah as replacement.

Silver Heights had initially planned construction of 150 residential apartments, and water homes on the island spreading across 460,000 square feet in area.

The World comprises 300 islands shaped in the form of world's continents, created off the coast of Dubai hoped to add another 232kms along the Dubai coastline.

According to Nakheel, land reclamation on The World, has been completed in 2008. Reclamation of the original 300 islands on The World was completed last January, after which, the masterplan was revised to include the concept design of individual projects that seek to merge islands. About 33 islands have been handed over so far, and initial ground works have commenced.

Nakheel confirmed to the press that it is offering the investors a consolidation on their projects that have been deferred by Nakheel. The investors in deferred projects are given the option of consolidation, if they own other properties within the Nakheel portfolio. The consolidation option is only open to owners, and is non-transferable and non-transactional. Those agreeing to this, will have to sign a new contract with Nakheel. The investors therefore can gain ownership of the property more quickly than in a deferred project, while also getting their financial burden reduced.

Nakheel also agreed that customers can resell their properties, under the condition that all outstanding payments due to Nakheel as per the contract are settled completely.

Nakheel also clarified that the Dubai Waterfront development has not been cancelled and work is continuing at good pace and that the first phase of Badrah and Vento will be handed over next year.

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