Nakheel unit signs more settlements on The World

Dubai Islands developer sees heightened investor interest in delayed offshore project
Nakheel unit signs more settlements on The World
The World, Nakheel
By Andy Sambidge
Wed 03 Jul 2013 08:14 AM

The World LLC, a Nakheel subsidiary, has signed two more settlement agreements - worth a combined value of almost AED185m ($50.3m) - with investors in The World, bringing the total settlement value at the project to AED807m.

The company said in a statement that the AED807m accounts for 45 percent of Nakheel's total settlements of land purchasers' obligations - AED1.8bn - in the first six months of 2013.

"The latest settlements on The World - yet more evidence of heightened investor interest in the offshore project - mean that the investors will now continue with their individual island developments," the statement said.

A Nakheel spokesman said, "The World is back on the map. Investors are coming forward to settle their dues and we are receiving an increasing number of designs and proposals for development at this unique project." 

The statement added that the agreements, the terms of which include investors settling their outstanding principal amounts in full, are with Sao Paulo Development Ltd for Sao Paulo Island and a GCC investor for the purchase of Nord Island.

A previous judgement by the Dubai World Tribunal had ordered Sao Paulo Development to pay its due fees.

They come two months after The World LLC signed an out-of-court agreement for AED622m with Kleindienst Properties Limited. Kleindienst has bought six islands at The World and is developing a project called The Heart of Europe.

More settlements are close to being finalised, added Nakheel.

The World LLC completed The World's 300 islands and the 27km breakwater in 2008. The development is 9km long and 7km wide, and adds 232km of beachfront to Dubai's natural 67km coastline.

More than 320 million cubic metres of sand were used to create 10 million sq m of upland area for development, while 34 million tonnes of rocks make up the breakwater that protects the islands.

The breakwater, with water on both sides, provided 54km of new rocky reef marine habitat and is alive with marine life.

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