20 April 2010
Hydra Properties, an Abu Dhabi developer embroiled in disputes with investors for more than a year, is to buy apartments in buildings nearing completion to offer to customers who have suffered major delays.
Ali bin Sulayem, the chief executive of Hydra, said the Royal Group, Hydra's parent company, helped it purchase 50 apartments in Tamouh Investments' Marina Square development to transfer to customers who have seen their original projects significantly delayed. Royal Group, which owns both Hydra and Tamouh, is owned by Sheikh Tahnoon bin Zayed.
Hydra said it had made progress on its projects in the past year and was trying to resolve disputes with investors over contract changes, price rises on previously sold properties and demands for payments for homes that have been significantly delayed. The transfer of some customers into the new 50 apartments later this year would be part of those efforts.
Hydra Village, a collection of more than 2,500 villas, and Hydra Avenue on Reem Island were was progressing well, Mr bin Sulayem said.
Hydra Properties, an Abu Dhabi developer embroiled in disputes with investors for more than a year, is to buy apartments in buildings nearing completion to offer to customers who have suffered major delays.
Ali bin Sulayem, the chief executive of Hydra, said the Royal Group, Hydra's parent company, helped it purchase 50 apartments in Tamouh Investments' Marina Square development to transfer to customers who have seen their original projects significantly delayed. Royal Group, which owns both Hydra and Tamouh, is owned by Sheikh Tahnoon bin Zayed.
Hydra said it had made progress on its projects in the past year and was trying to resolve disputes with investors over contract changes, price rises on previously sold properties and demands for payments for homes that have been significantly delayed. The transfer of some customers into the new 50 apartments later this year would be part of those efforts.
Hydra Village, a collection of more than 2,500 villas, and Hydra Avenue on Reem Island were was progressing well, Mr bin Sulayem said.
During the past 18 months, Hydra has implemented a turn-around strategy that saw it reduce spending, improve cash flow and focus on delivery of buildings, he said. The company has also scaled back its portfolio of buildings.
"The financial crisis and its impact on investors has deterred us from continuing with some projects," said Ahmed Khalil, the commercial director of Hydra.
He added that the company was committed to building those projects for which customers were willing to pay. "When the dust settles, what we'll develop, what will come and what happens is up to the customer," Mr Khalil said.
By Bradley Hope
© The National 2010
