By Staff writer
Four-year legal battle settled with Palm Jumeirah developer assuming full ownership of the remaining unsold units
An out of court settlement has ended a four-year legal impasse that had stopped retailers from opening outlets on Dubai’s Palm Jumeirah.
As many as 27 retailers are waiting to open outlets along Palm Jumeirah’s Golden Mile, including Waitrose, Starbucks, Wagamama, Mothercare, Boots, Loft Fifth Avenue and Pinkberry.
Retailers signed contracts with Souq Residences, a joint venture between Kuwait's Ifa Hotels and Resorts and a unit of Dubai World (Istithmar) but have so far been unable to open any outlets due to a lengthy legal dispute between Nakheel, the government-backed master developer of Palm Jumeirah, and Souq Residences.
Under the agreement, Nakheel will assume full ownership of the remaining unsold units in the Golden Mile, which comprises residential, office and retail space, while Souq Residences is relieved of substantial liabilities.
The ten-building (11-storey) complex includes 430,000 square feet of retail and office space, as well as 860 residential units.
In a statement on Nakheel’s website, Ali Rashid Lootah, chairman of Nakheel, said: “We have come to an agreement that is satisfactory and beneficial to all parties. We look forward to realising the full potential of the Golden Mile, a key component of Palm Jumeirah, in line with our overall vision for the island.”
Speaking on behalf of Souq Residences, chairman for IFA Hotels & Resorts, Talal Al Bahar added: “This marks a new chapter in our business relationship with Nakheel. As the largest foreign investor on Palm Jumeirah, we share Nakheel’s vision for the island. We also look forward to building further upon our long-standing relationship with Nakheel in its future master planned developments.”For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.