More out-of-court settlements close to finalisation, total recovery of Dh807m
More companies are favouring an out-of-court settlement with Nakheel, a Dubai-based master developer, particularly when it comes to The World development.
The developer said on Tuesday that The World LLC, its subsidiary, has signed two new settlement agreements worth Dh185 million with investors in The World, thus bringing total settlement to date to Dh807 million for the project.
"The World is back on the map. Investors are coming forward to settle their dues and we are receiving an increasing number of designs and proposals for development at this unique project," a Nakheel spokesperson said.
The settlement for The World project accounts for 45 per cent of Nakheel's Dh1.8 billion - total settlements of land purchasers' obligations - in the first six months of 2013.
According to the master developer, the latest settlements on The World indicate that the investors will now continue with their individual island developments.
The agreements, the terms of which include investors settling their outstanding principal amounts in full, are with Sao Paulo Development for Sao Paulo Island and a GCC investor for the purchase of Nord Island.
The new settlement follow The World signing an out-of-court agreement for Dh622 million with Kleindienst Properties, which owns six islands at The World.
Last month, Emirates 24|7 reported that a number of developers were submitting their development with Nakheel for approval on The World project.
"An increasing number of investors and owners are currently focusing on development on The World, as is evident from the growing number who are submitting their development plans for approval," a company spokesperson had said.
So far, Lebanon Island and one other private island have been developed. Among the investors planning for development are Kleindienst Properties, who own six islands and are developing a project called Heart of Europe, and a consortium of investors in the island of Taiwan.
A company spokesperson ha said they were open to investor inquires on the development.
"The renewed customer interest in this world class project is a symbol of investor trust and confidence in Dubai and its real estate market. Investor enquiries on this project are welcome."
The World, master developer of the iconic project, has completed development of the 300 islands and 27 kilometre of breakwater.
The islands range from 150,000 to 450,000 square feet in size. The project is divided into private estate island zones, commercial zones, which have low/mid/high density resorts, hubs for ferry transfer points and public visitor areas.
© Emirates 24|7 2013
