Cash-flow problems delay Dubai skyscraper

City's second tallest skyscraper, the Pentominium, was put on hold in August amid liquidity woes
Cash-flow problems delay Dubai skyscraper
The Pentominium will be Dubais second-tallest tower on completion
By Elizabeth Broomhall
Tue 20 Dec 2011 09:20 AM

Liquidity woes may push Dubai’s second tallest skyscraper,
the Pentominium, past its completion date as developer Trident struggles with financing,
the project manager said.

The planned 516m tower in Dubai Marina was scheduled for
completion in 2013 but saw work suspended in August amid wider financing
concerns
.

“For the time being it’s on hold,” said Amer Khan, CEO of
project management company Precipio. “The developer has faced some cash
problems so we’re trying to sort that out, and hopefully we’ll get going as
soon as possible.

“No timeline has been given [for the restart], they’re still
trying to come to a decision regarding the current problem of the cashflow.

“It’s a mixture of a few things I would say, but it’s
[partly due] to the economic situation, and the cost of the project as well.”

The Pentominium tower has attracted a barrage of attention
since its launch in 2007. The tower was nominated for the award for 'Best Property in the
World' at the CNBC International Property Awards and dubbed one of the region’s
most advanced engineering challenges.

At 122 mini-storeys, the luxury block plans to offer 172
luxury penthouse apartments designed by Italian fashion designer Salvatore
Ferragamo, each occupying its own floor.

Its height will be superseded only by the Burj Khalifa,
making the Pentominium the second tallest development in Dubai and the UAE.

Delays to the building have not deterred real estate agents,
who continue to advertise the uncompleted penthouses on their websites for
prices of AED16m.

Building firm ACC, which was awarded the construction
contract in 2009, said it continued to work with the developer towards
continuation.

Trident did not respond to calls and emails made by Arabian
Business.

The value of construction projects scrapped or on hold in
the UAE soared to $958bn in the 12 months to October, Citigroup said this month,
signalling the Gulf state’s battered project market is still some way from
recovery.

The Gulf country, which accounts for more than half of the
stalled or cancelled projects in the MENA region, saw $20bn worth of
developments added to the list over the last year.

The Gulf nation now has $604bn worth of projects planned or
underway, a decline of 33 percent on the year-earlier period, Citigroup said.

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