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Thu 2 Jul 2009 09:17 AM

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$543m Mirdiff Hills project on hold

DIRC boss says investors will get 100% refund after project shelved due to lack of mortgage finance.

$543m Mirdiff Hills project on hold
PROJECT FREEZE: Dubai Investments Real Estate Company has put Mirdiff Hills on hold.

Dubai Investments Real Estate Company (DIRC) has put its AED2bn ($543m) Mirdiff Hills project on hold due to a lack of mortgage financing, it has been reported.

Investors will be given a 100 percent refund, the head of the real estate arm of Dubai Investments told Emirates Business.

Khaled Kalban, managing director and CEO, Dubai Investments, told the paper: "We have put the Mirdiff Hills project on hold because of a lack of availability of mortgage financing on the project. Investors have got back to us saying they cannot pay up for their units.”

"We have started to repay the investors' down payments in the project. There are many who would have wanted to remain invested and have taken the cheques from us reluctantly," he said.

The mixed-use development comprises 680 apartments, 380 offices and 129 retail units and was due for completion in 2010.

Kalban said the firm would continue with the project if liquidity improved in Dubai.

He added that Dubai’s real estate sector was not showing any immediate signs of recovery, but there were signs of prices stabilising.

Arabian Business: why we're going behind a paywall

paul 11 years ago

On hold? And they are paying back deposits? Surely they mean 'cancelled'? Of course if you talk about cancellations it would be an admission that there is no realistic prospect of a return to rampant boom for the foreseeable future. They would like to pretend that the massive crash of the past year is just a little turbulence on Dubai's inevitable climb to world domination, whereas the truth is that the game is up and they won't be able to rely on flogging worthless desert to gullible fools as the primary industry for at least a generation. And what else is there? Wild wadi? This 'on hold' won't ever resume, we all know that. Why not come out with a bit of honesty and say it is cancelled? Dubai is sadly still in denial, its primary industry is gone, discredited, and the disasters that followed with collapsing projects and legal disputes will poison the prospects of a revival for decades. Dubai desperately needs a plan 'B', it has a lot going for it if it is prepared to work a little harder and accept a little less money. But it seems Dubai is just not willing to face facts yet and have more modest aspirations. CPR on plan 'A' seems the only plan 'B' they have. Dubai needs to move on and come up with a new plan.

Etisalgood 11 years ago

Full marks to DIRC for being honest and for intending to give investors a 100 percent refund. Now, if only other developers can follow suit, Dubai could well be on its way to recovery. I believe the key factor holding back the real estate sector is a lack of confidence amongst buyers, rather than oversupply. Many feel that they've been taken for a ride and their hard earned dirhams have brought nothing but colorful hoardings and huge holes in the ground.

Moe 11 years ago

Yea Etisalgood, its a good move but not all developpers can afford to do the same, a construction project is like a train once it start to move there is no way u can stop it, developpers pay for contractors advance payments and get into contract agreements with them, if the developer decide to cancel the project while construction is ongoing, the consequences will be hard to handle, so most of the projects on the design / tender stage (off plan sold) have been cancelled and the investors were re-funded but for the ongoing construction projects that will be IMPOSSIBLE

zed 11 years ago

If I am not mistaken this is the same project that was being sold as Midas Mirdif Hills by M Holding. The report does not give any information on M Holding and its role in this development (non-development as it now turns out to be). Is something amiss here?

abdul aziz 11 years ago

i have buyed a property in midas mirdiff hills from mundia real estate and now as we all know that the project is put on hold and the mundia real estate is not there .. i was soo happy to listen that dirc is returning the money back as dirc is the main devoloper for this project .. so plzz can i know how can i collect my money from dirc ?? regards abdul aziz

sajjad imam 11 years ago

I paid 10% downpayment to Mundia Real Estate (M Holding) for a studio in mirdiff in The Mirdiff Hills Project. How do I get my refund from them as they are not reachable any more.

sajjad imam 11 years ago

hi abdul aziz, have you any idea how we should go about recovering our money from Mundia/DIRC?

abdul aziz 11 years ago

hi sajjad ... itz very sad 2 hear that u r also in d very same problem .. write a complain letter 2 rera n land department .. might something happen .. tc

sajjad imam 11 years ago

dear abdul, i have also lodged a complaint with rera in april this year but they have been completely silent on the issue. Please do let me know if you come across anything, I will do the same. Thanks. tc