A Nakheel subsidiary has signed an out-of-court settlement agreement with Kleindienst Properties, a key investor in The World project, ending the need for it to go to the Dubai World Tribunal.
The settlement, under which Kleindienst Properties will pay the balance owing of AED622m to The World LLC, allows Kleindienst to continue with its planned Heart of Europe islands at The World.
The settlement was welcomed by both parties who said it would allow work to restart on the Dubai offshore project which has been dogged by delays.
“We are delighted to be finally able to continue work on this iconic project and are excited about the prospect of delivering our unique vision for The Heart of Europe development to investors,” said Josef Kleindienst, CEO of Kleindienst Group, a Dubai based real estate agent and developer.
“We are starting with the Germany island and will complete the show villa this year, while construction of 20 other state-of-the-art villas gets underway.
"We are also in the process of renewing approvals for all six islands and look forward to sharing more updates on this dynamic project over the coming months.”
Its Heart of Europe project includes Germany, Austria, Switzerland, Netherlands, Sweden and St Petersburg.
The World is an artificial archipelago of various small islands constructed in the shape of a world map, located 4km off the coast of Dubai.
The Kleindienst agreement comes a month after the Dubai World Tribunal ordered Sao Paulo Development Ltd, who had sought to renege on its commitment to purchase The World island of Sao Paulo, to pay The World LLC AED127.6m to cover outstanding instalments and accrued delay fees.
A Nakheel spokesman said: "This mutually-beneficial agreement with Kleindienst Properties is another major milestone for The World, further proving that the project is alive and ready for development.
"In addition, we are witnessing renewed interest in this project, with a growing number of designs and proposals being submitted for review."For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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