By Joanne Bladd
Indebted developer suspended work on Masakin Al Furjan project in wake of real estate crash
State-backed real estate developer Nakheel said Monday it is
on track to hand over properties in its delayed Al Furjan residential project,
after resuming work on the development in September.
The 335-unit Masakin Al Furjan unit, part of the wider Al
Furjan development in ‘new’ Dubai, was one of a number of Nakheel projects
suspended in the wake of Dubai’s financial crash.
Construction firm Arabtec halted operations at the site last
year after Nakheel delayed payments to contractors and suspended millions of
dollars worth of real estate developments.
The developer, which is seeking to delay some $10.5bn of
debt, said Monday it has completed snagging on 80 apartments in the project but
declined to say when it would begin handover.
Nakheel said earlier this week is had paid AED5bn in overdue
payments to its trade creditors and had won near-unanimous approval on its revamp
from firms representing 95 percent of debt.
Under its plan, trade creditors have been offered 40 percent
of what they are owed in cash and the rest through an Islamic bond, or sukuk.
The company said in May it expected to conclude its debt
restructuring by the end of June and would be carved out of parent company
Dubai World to become a state-owned entity.
Company CEO Chris O'Donnell left Nakheel earlier this month
after five years at the helm.
We have a unit in this project and surprisingly are well made. way above normal standard. I must applaud Nakheel on this project