By Staff writer
Developer starts groundwork on Halong Star resort, which was first announced in 2007
Limitless has resumed working on a Vietnamese housing and tourism project that was put on hold in 2009 as a result of the financial crisis.
The Dubai developer announced yesterday that groundwork had begun on the $550 million Halong Star project in Halong Bay.
The project, first announced in 2007, had an initial investment value of $220 million. It will feature 340 villas and apartments, retail and leisure facilities and a five star hotel.
The Vietnamese economy grew at 6.7 percent last year, its fastest pace of growth since 2008. Halong Bay welcomes more than a million tourists each year.
Limitless has been seeking to rebuild its finances after an earlier restructuring triggered by a downturn in the emirate's property industry at the end of the last decade.
Another market slowdown has made this more pressing for the Dubai government-owned company, whose projects include a 200-hectare mixed-use development in Dubai's Jebel Ali, as well as the Halong Star project and plans in Russia.
In June 2015, the company said it had won the approval of almost 90 percent of banks to a repayment plan involving AED1.9 billion of bank debt. In return, Limitless is asking its 18 creditor banks to agree to extend the term of its debt by two years to December 2018.
Limitless said in June its total outstanding bank debt was AED4.45 billion.
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