By Shane McGinley
Nakheel will receive 'significant' funds from Dubai government to complete delayed golf project
Nakheel, the indebted real estate arm of state-owned Dubai
World, will receive funds from Dubai to complete the delayed Jumeirah Golf
Estates project, the company said Monday.
“The government of Dubai has committed to providing
significant financial support to Jumeirah Golf Estates… our contractors have
recommenced work at the development,” the company said in an emailed statement.
Jumeirah Golf Estates, home to the Dubai World Championship,
saw work suspended on two of its four golf courses in 2009 following
difficulties over contractor payments.
The 306-home real estate development was launched by Dubai
World subsidiary LeisureCorp and is scheduled for completion in 2012.
Leisurecorp’s activities were merged with those of Nakheel
in June last year.
Nakheel said Friday it had won near-unanimous approval from
financing banks for its plan to restructure $10.9bn in debt.
Company CEO Chris O'Donnell left Nakheel last week “after
completing his contract terms,” the developer said.
Nakheel was one of the biggest casualties of Dubai’s real
estate downturn, which saw prices halve from their 2008-peak and almost half of
developments in the emirate cancelled.
The developer's inability to meet its debt obligations, in
the wake of a property collapse and the global credit crunch, helped trigger
Dubai's debt crisis in 2009.
Well Nakheel said issued a statement to the effect that contractors were back on site attending to the missing infrastructure in November last year, so once again we hope that this is the real deal.
However, it depends how one interprets the statement, back on site to complete two unfinished courses or back on site to complete the infrastructure or indeed both? Home owners forced to stand and watch their complete and snagged villas stand empty minus a utilities connection and thus the necessary certification allowing them to move in for 18 months e.g. Lime Tree Valley, will be wary but heartened by the statement.
However, they have had to endure the pain of a) not being able to live there and b) watching their property devalue to, according to Deutsche Bank, an average of 46 % of what they paid for it at peak. With a further 6 months in prospect while the necessary work is completed to release the formal fit for handover certification, a precedent for compensation perhaps?