17 March 2009
Tanmiyat, the developer behind the Living Legends project in Dubailand, has announced its compliance with the directives of Dubai's Real Estate Regulatory Agency (Rera) that it would suspending the collection of all payments and instalments for the Living Legends until a revised payment schedule is finalised.
According to the directive, new developers in Dubai will have to pay 100 per cent of the land price to start selling properties "off plan" and will have to inject a minimum of 20 per cent of the project value to commence construction. In addition, developers will have to link payments to construction status.
Tanmiyat has already fully paid the land price of the Living Legends project and has injected more than the required minimum percentage of the project value prior to commencing construction. And it continues to maintain complete compliance with relevant legislation by now revising the payment schedule of the Living Legends to fulfil the latter condition.
"Tanmiyat is committed to remaining in compliance with all applicable laws. We already own the land for the Living Legends, and we have paid the land price in full to Dubailand. Therefore, this new legislation does not significantly affect us. What we have decided to do is to revise our payment schedule to reflect the project construction plan," said Firas Al Attili, Tanmiyat Group Financial Director.
"We believe this new directive, like the Escrow Account Law (Law No 8 of 2007), is an important step in building a solid foundation for the future of the UAE property market, which will ensure its continued growth and shore it up against fluctuations in the global economy," he said. "We have already informed clients of our decision, asking them to stop making payments until end-April 2009, and we will work to finalise the revised payment schedule as soon as possible. We will inform our clients as soon as the revised schedule is ready," he said.
The Dh2.7 billion Living Legends is a multi-purpose development located in the Dubailand complex on Emirates Road. Once completed, it will extend over an area of 1,340m sqm.
Tanmiyat, the developer behind the Living Legends project in Dubailand, has announced its compliance with the directives of Dubai's Real Estate Regulatory Agency (Rera) that it would suspending the collection of all payments and instalments for the Living Legends until a revised payment schedule is finalised.
According to the directive, new developers in Dubai will have to pay 100 per cent of the land price to start selling properties "off plan" and will have to inject a minimum of 20 per cent of the project value to commence construction. In addition, developers will have to link payments to construction status.
Tanmiyat has already fully paid the land price of the Living Legends project and has injected more than the required minimum percentage of the project value prior to commencing construction. And it continues to maintain complete compliance with relevant legislation by now revising the payment schedule of the Living Legends to fulfil the latter condition.
"Tanmiyat is committed to remaining in compliance with all applicable laws. We already own the land for the Living Legends, and we have paid the land price in full to Dubailand. Therefore, this new legislation does not significantly affect us. What we have decided to do is to revise our payment schedule to reflect the project construction plan," said Firas Al Attili, Tanmiyat Group Financial Director.
"We believe this new directive, like the Escrow Account Law (Law No 8 of 2007), is an important step in building a solid foundation for the future of the UAE property market, which will ensure its continued growth and shore it up against fluctuations in the global economy," he said. "We have already informed clients of our decision, asking them to stop making payments until end-April 2009, and we will work to finalise the revised payment schedule as soon as possible. We will inform our clients as soon as the revised schedule is ready," he said.
The Dh2.7 billion Living Legends is a multi-purpose development located in the Dubailand complex on Emirates Road. Once completed, it will extend over an area of 1,340m sqm.
By Staff Writer
© Emirates Business 24/7 2009
