EXCLUSIVE: Hydra set to scrap all projects abroad

Monday, 10 August 2009 9:25 AM

Hydra Properties is considering scrapping its entire portfolio of international projects, with several UAE projects also set to be scrapped, downsized, put on hold or sold to a new developer.

The company’s CEO Ali Bin Sulayem admitted on Sunday that if a project was only 10 percent sold there would be “no reason to continue the project”.

Arabian Business has learnt that following an internal review, more than half of Hydra’s portfolio could be affected.

It is understood that developments in Mexico, Kuwait, and Libya may be totally shelved, while its new project in Pakistan will be transferred to the PAL Group (also part of the Royal Group which owns Hydra Properties).

In Dubai, it is understood that the Twin Tower and Downtown Tower projects have been earmarked for the chop, leaving just Hydra Towers in the emirate.

In Abu Dhabi, it is believed that the flagship Hydra Avenue and Marina Spirit projects, comprising 8 towers, are being sold to a new private developer.

Its Hydra City project, which includes Golf Walk, faces a freeze. Hydra Height, also in Abu Dhabi, is likely to be scaled down from three towers to just one, while the status of Executive Towers in thought to be “unclear,” according to company sources.

“We are reassessing some of our projects. When we get [to] the decision that we can hold some of our projects we will publish them,” Bin Sulayem said at a press conference on Sunday, adding: “If a project is sold 10 percent there is no reason to continue this project.”

Bin Sulayem said it was still uncertain which projects would be put on hold.

He added that every unit of the flagship 2,507-home Hydra Village project in Abu Dhabi had been sold.

The boss of the Abu Dhabi based developer said that its parent company, The Royal Group, had not injected any funds into the company but capital was available if needed.

“We are reassessing some of our projects. When we get [to] the decision that we can hold some of our projects we will publish them,” he said.

“If a project is sold 10 percent there is no reason to continue this project,” he added.

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Posted by: Hank Wednesday, 12 August 2009 9:44 AM[UAE] - UAE

Perhaps it is right that people should do their due diligence before they jump on these off-plan schemes, but many people thought that the Royal Group being behind this, their investment was secure. May be this was naive as well. Some expensive lessons. The Hydra investor group (more than 500 members) is going to bring them to Court. That will be the nail in the coffin for Hydra, regardless if people get their money back or not.

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Posted by: hisham helmy Tuesday, 11 August 2009 11:37 PM[UAE] - Egypt

Hydra first who is second in line. I hope it will be DAMAC so I can claim my money

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Posted by: Mark Tuesday, 11 August 2009 12:41 PM[UAE]

Well said Joe. Obviously investors in Hydra are a mixed bag. Some purchased to speculate and sell quickly, but many others purchased to keep and live in or rent out once completed. They have paid Hydra their hard earned money, but received nothing in return. Hydra should be ashamed of themselves.

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Posted by: Original Joe Tuesday, 11 August 2009 12:08 PM[UAE]

Hydra Village is outside of Abu Dhabi and was not one of the big "speculator" targets. Many buyers at Hydra Village saw an affordable option for their families instead of continuing to pay the high Abu Dhabi rents. The problem is many of these families are not cash buyers so they obtained financing from companies like Abu Dhabi Commercial Bank where the interest part of the loan must be paid monthly from ADCB's first payment to Hydra. Now these buyers are paying rent somewhere while they wait for their Hydra Village villa to be built but these buyers must also keep up with their monthly interest payments. If ADCB makes another payment to Hydra then the monthly interest payment goes up. There is still no villa and will not be one for at least a year or two, maybe longer. But these families must continue to pay the interest payments because if they don't they could go to jail. These are the buyers who are really suffering. Everyone seems to want to take shots at the big bad speculators but there are real families out there who are hurting because Hydra played games with people's money and lives.

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Posted by: M. Mouse Tuesday, 11 August 2009 11:14 AM[UAE] - Cayman Islands

Whilst a lot of you moan about Hydra and their lack of progress who should have any sympathy for those speculators amongst you who thought you would all make a quick buck and now got your fingers burned not me for sure !!

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