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Sat 28 Feb 2009 04:00 AM

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Cirrus throws a line to Aquarius Gate investors

Dubai-based Cirrus Developments has stepped in to support ailing investors in its Aquarius Gate project, some of whom it says “have over-extended themselves.”

Dubai-based Cirrus Developments has stepped in to support ailing investors in its Aquarius Gate project, some of whom it says “have over-extended themselves.”

The move ties all future payments made by investors in the US $816 million (AED3 billion) project to the successful meeting of construction milestones on the part of the developer.

The payment plan comes in line with the new draft ruling issued by the Real Estate Regulatory Agency (Rera) at the beginning of this year to curb the number of developers and restore confidence among investors.

The rule states that Dubai developers must own 100% of the land they are building on, and restricts them from collecting more than 20% of the cost of the property from the buyer prior to construction.

Further payments must be linked to construction milestones, as reflected in the Cirrus Developments scheme.

"We are meeting with our purchasers on an individual basis to hear their thoughts and feedback on what has transpired in the market in recent months and how they are being affected," said Cirrus Developments COO Rehan Khan.

"We are listening to our purchaser's needs on a personal basis and reacting as much as commercially feasible, and believe this is the best way forward, particularly as some purchasers have over-extended themselves."

Khan added that the firm had deferred payment by up to five months in some cases. The move has met with the approval of Rera.

The developer said that construction is underway on the Aquarius Gate development in the Madinat Al Arab area of Nakheel's Waterfront, despite the global slowdown.

"Construction has started at Aquarius Gate with enabling works getting underway," said Cirrus Developments chairman and CEO Behnam Eshragh.

"This most recent development will provide further confidence in the project and ongoing support to our purchasers," he said.

One side of the development is planned to be dedicated to an art wall, which will showcase Islamic art from around the world.

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Padam Mehrotra 6 years ago

Pl some one let me know whether the project is under construction or abondoned . From whom the current status of the project can be ascertained. At the time of launch people could not get entry to the Venue but thereafter no details r available.