Thursday, September 23, 2010

Nakheel re-starts all its short-term projects

Nakheel has announced that it is in the process of re-starting all its short-term projects, as per the re-structuring plan to be finalized by year-end.

The CEO of Nakheel, Chris O'Donnell, has instructed that all deals with contractors should be ready by end of next month, so as to begin construction of all eight short-term projects.

Nakheel has already held talks with the banks, and consolidations, and re-structuring will be almost completed by end of the year, he said.

Located off the Emirates Roads in Dubai, Al Furjan said that it is the first project in which Nakheel has signed deal with its contractor, to work on 300 villas, the work on which began two years back

The Managing Partner at Al Shafar Transport and Contracting, Tarent Zoabi, confirmed that work was underway on 63 villas, to be handed over in the first quarter of 2011. The remaining 237, is also 60 percent complete, and will be delivered by fourth quarter of next year.

Although, there was a short delay owing to economic conditions, the company got paid for first phase, inline with the re-structuring plan, and therefore hope that the rest of the payment will be released by the year-end, said Zoaibi.

Meanwhile, Arabtec is likely to commence work on the rest 500 villas in this phase of Al Furjan, and is considered to be one of the short-term projects by Nakheel, which is still pending. The developer hopes to reach a deal with Arabtec by the end of next-month.

Arabtec and other contractors will resume the work on this and other sites. This phase of Al Furjan has already been sold out. The Phase Tw0 is a long-term project, said Mohammad Rashed Bin Dhabeah, the Managing Director, Nakheel Construction.

We are also working on creating a park adjacent to Golden Mile on Pam Jumeirah, said Chris O-Donnell.

Nakheel is yet to reveal how many of its long-term projects will finally go ahead. The first focus is to finish the re-structuring and the eight projects in next two years, said O-Donnell said.

Short-term projects are phases or certain components of master developments, where construction has progressed considerably. These include initial phases of Jumeirah Park, Al Furjan, Veneto and Badrah, Madinat Al Arab, Jumeirah Heights, Jumeirah Village South, Jumeirah Island and finishing bits and pieces on Palm Jumeirah.

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