Sorouh says up to 8% of buyers leave Reem island projects

Developer has been working to restructure contracts, reduce price and lower construction cost
UAE HOMES: Sorouh plans to deliver 2,500 new homes in Abu Dhabi by the end of 2012. (Getty Images)
By Reuters
Tue 30 Nov 2010 11:32 PM

Up to 8 percent of buyers backed out of Sorouh Real Estate's projects on Reem Island, a top company official said on Tuesday.

Abu Dhabi's real estate sector has been less seriously hit than that of Dubai, where a property boom came to a stop as the emirate's debt crisis unfolded in 2009.

Gurjit Singh, Sorouh's chief operating officer, said Abu Dhabi's second largest developer by market value has been working over the last 20 months to restructure contracts, reduce price and lower construction cost. However, some withdrawals by buyers could not be avoided.

On the sidelines of a conference in Abu Dhabi Singh told reporters: "We have implemented a clear strategy of default avoidance. We have minimised instance of buyers trying to back out. We had to agree to some of them (withdrawals) but we tried very hard to minimise them."

He said "between 5 to 8 percent" of buyers backed out, without giving a time frame.

Sorouh said in November that it plans to deliver 2,500 new homes in Abu Dhabi by the end of 2012.

The company secured bank loans of $639.8 million in July, and Singh said the company is comfortably funded for the next 12 months.

He said: "We will go out and seek funding as and when required but we are very focused and fully funded for our developments."(Reuters)

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Last Updated: Thu 26 Jan 2017 01:27 PM GST

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