Dubai ‘kickstarts $3.2bn of stalled property schemes’

Dubai Land Department’s Tayseer and Tanmia initiatives aim to attract funding for troubled projects
Dubai ‘kickstarts $3.2bn of stalled property schemes’
By Sarah Townsend
Sun 13 Dec 2015 03:05 PM

A total of 51
real estate projects valued at AED12 billion ($3.2 billion) have been
resurrected under Dubai government-backed funding initiatives, it has been
revealed.

The Dubai Land
Department’s ‘Tayseer’ and ‘Tanmia’ initiatives were launched in 2010 and 2011,
respectively, and aimed to secure financial support from government or private
investors in order to restart troubled schemes.

Under the
initiatives, developers registered their stalled projects with the DLD, and
sought new sources of funding for them.

According to a
report circulated by Zawya Projects, 51 projects worth a combined value of
AED12 billion have been kickstarted under Tanmia since the initiative began.

Of those, 12
projects worth AED2 billion were restarted in the past year alone.

Tayseer
initiatlly covered 40 projects across Business Bay, Dubai Marina and Jumeirah
Lakes Towers (JLT). There are eight developers listed under this scheme at
present, according to the report, including Emaar Properties, Al Wasl and
ICD-Brookfield.

However, the
names of the projects kickstarted under the scheme were not disclosed.

In order to
qualify under the scheme, projects need to have adequate infrastructure planned
or already in place; a properly managed escrow trust account for off-plan sales
under Dubai real estate law; a technical report showing that at least 60
percent of the construction is completed and at least 60 percent of the project
has been sold.

Arabian
Business has contacted the DLD for comment.

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