Tuesday, March 15, 2011

Nakheel allows swapping of plots in short-term projects

Nakheel has permitted the plot owners of its projects to swap plots in exchange of plots for short-term projects, with the plots being offered at market price.

According to a Nakheel spokesperson, owners in long-term projects, will however be offered only plots in short-term projects as exchange.

Few investors have expressed keenness in swapping their plots for completed or near completion properties, as the projects that they have purchased have been put on hold.

But this new option offered by Nakheel implies that plot owners cannot exchange their investments for completed or near completed properties such as villas and apartments at Discovery Gardens, and International City of Jumeirah Village.

Nakheel agreed that it has been offering a re-fund option, as a part of overall re-structuring plan by the company. Therefore, customers in long-term project are welcome to swap their funds into available inventory or choose consolidation of their funds. A long-term re-fund option is also open to them.

Earlier, Nakheel had offered consolidation option to investors in Palm Jebel Ali projects, offering them three alternatives – a credit note for money paid for a plot, exchanging it for a plot in Palm Jumeirah, The World, or Jumeirah Village, and a full re-imbursement on 31st December 2015.

Last year, Nakheel agreed that it will continue to offer customers in long-term projects, the option to receive credit equivalent to 100% of their installment payments, and exchange for projects nearing completion at current market value.

At present, Nakheel is in the process of completing short-term projects, phases or certain components of master developments, including Al Furjan, Jumeirah Park, Veneto, Jumeirah Heights, Jumeirah Village South, Badrah, Jumeirah Island, and Palm Jumeirah, where construction progressed considerably.

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