ACI Real Estate has filed for bankruptcy on four of its seven property funds, according to media reports in Germany.
The company – which launched a number of celebrity branded towers in Dubai – is understood to have declared the funds bankrupt at a court in Bielefeld, Germany.
The property funds were launched in 2004, with investors believed to have paid $75m into them. The first fund six years ago was used to develop a property in Jumeirah Lake Towers, Funds two and three were used for ACI’s City of Arabia development, and funds four and five for projects in Business Bay and Victory Bay.
Funds six and seven related to investments in the sports-branded Michael Schumacher and Nikki Lauder developments.
Payments from the funds were due in March last year, but did not materialise. Shortly after, the company’s boss Robin Lohmann told Arabian Business: “Giving money back is not an option as this point in time. The money has been invested in the land, which is fully paid for, and the money has been spent in the development, which is normal - the contractor and suppliers are not working for free.”
It is not clear whether work will now progress on a string of ACI Real Estate projects in Dubai. In 2008, the company announced plans for Michael Schumacher Business Avenue, Boris Becker Business Tower and Niki Lauda Twin Towers.
Construction on all three projects stalled last year. Its website still lists 11 projects that it says are under development, with another six being undertaken by “third party developers”.
Last year Lohmann hit back at claims that the projects were being cancelled and that investors would lose their cash, saying: “For me there is no chance I will do a hit and run. You know why? Because I haven’t even collected the money I have invested and spent here. I’m not going ahead and losing AED500m ($136.1m), it’s not the way.”
Lohmann could not be contacted for comment.For all the latest UAE 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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