Investors welcome Hydra Properties shake-up

Investors in delayed projects planned by Hydra Properties have welcomed the company shake-up that has seen Sulaiman al Fahim replaced as CEO.

The real estate company has faced a barrage of complaints from investors in Hydra Village, a residential development near Abu Dhabi International Airport, which is two years behind schedule.

On Wednesday, it was announced that al Fahim would become a member of the company’s board of directors, with Hydra’s Ali bin Sulayem, of parent company, Royal Group, replacing him as chief executive.

The move, which came just two weeks after Royal Group insisted al Fahim would remain as CEO, was welcomed by investors.

Paul Grant, chair of Hydra Investors Committee, told Arabian Business in an email statement: “Dr Fahim is a young man of huge potential, flair and entrepreneurial energy who has made Hydra what it is today.

"However Hydra has found itself in difficulty with its investors who have real and legitimate grievances regarding lack of construction, lack of financing and serious doubts regarding Hydra’s commitment to them.

“If it is to find its way out of its present difficulty Hydra needs renewed focus. We believe the Royal Group, and the appointment Ali bin Sulayem as the new CEO, will provide this. We also believe that as a director Dr Fahim still has a contribution to make."

Last month, Arabian Business revealed how Al Fahim had signed an agreement to buy Portsmouth, a Premier League club, a deal that is going through the due diligence process at the moment.

One of al Fahim’s last actions as Hydra CEO was to hand a string of concessions to homebuyers on its flagship project, Hydra Village.

Customers who had put down 50 percent installment would receive a payment break until early 2010.

At a meeting with angry investors earlier this month, it was also announced that late payment fees would be scrapped with immediate effect.

New CEO, Ali Bin Sulayem, told investors at the time: "We are going forward to complete our projects and there is no reason to fear that we won't do that. We are feeling the economic situation but Abu Dhabi is strong."

The meeting was the latest twist in a protracted dispute between the developer and investors, who have complained of imposed price hikes of units, construction delays and changes to master plans at Hydra's developments in Abu Dhabi.

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