By Andy Sambidge
Master developer works with banks to devise finance packages amid credit crunch.
Nakheel is working closely with banks to devise finance packages for sub-developers on The World development, project chiefs have announced.
The master developer is also working on new payment plans for island owners who are struggling to fund their investments as a result of the global financial crisis, Hamza Mustafa, the managing director for the project said in comments published by UAE daily The National.
Six developers are expected to begin work on their projects this year, meaning a total of 25 islands owned between them will start construction.
About 79 developers are involved with The World, and there are 70 islands left to sell. Thirty of the islands will be developed by Nakheel.
The company has also revamped its marketing strategy to help find third-party investors for the various projects that will make up The World.
“The problem with today’s climate is the non-availability of liquidity. Developers are not going to get construction finance,” he told the paper.
He said a number of sub-developers had asked for payment extensions.
“In the past they would have had to pay a one per cent penalty in interest a month, but now we’re being more accommodating. We understand everyone’s in a situation.”
This is very interesting. The word on the street is that Nakheel is finding it extremely difficult to raise financing themselves and now they are going to help others raise financing...... the wonders never cease
properties prices are going to face a drastic revaluation, so who is the inteligent buyer or developper going to put his money in such risky market built on gambling during a time that all hot money left the banks of UAE out of cash? regadless Nakheel is trying help others what i recommend Nakheel is to resolve its internal problem first.