'Master developer may not complete the related infrastructure,' firm says in a report.
Developer Deyaar may abandon a Dubai residential project it bought for AED372m ($101.3m).
"Management now believes that the master developer may not complete the related infrastructure and therefore, the project may have to be abandoned," Dubai's second-largest developer by market value said in its half year financial report.
"Management is of the view that the transaction has become void and therefore should be reversed," it said, adding it has started arbitration proceedings against the seller, who Deyaar did not identify in the report.
No provision against the project was made, the developer said in the report.
The master developer is Sama Dubai and the project is Flamingo Creek, daily the National reported on Tuesday.
Deyaar said in June it is returning the management of another residential project, Skycourts, to state-owned National Bonds Corp.
National Bonds transferred the development and management of real estate projects Skycourts and Flamingo Creek to Deyaar in 2008.
Deyaar made a net loss of AED243m in the three months to June 30 compared with 76.4 million dirhams in the same period last year. (Reuters)For all the latest UAE 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.
Another tragedy to investors, money trapped with developer and developer Deyaar will never return their money. Deyaar will most probably give the investor the choice to buy another property far from the city and in a remote area for the same price. Deyaar management should be replaced by competent people and not amateurs and jokers.
We can see that investors are going to take a hit on their Deyyar purchase... but who is holding Sama Dubai accountable? They have left a string of incomplete projects ... a trail of infrastructure service delivery failure and broken promises.... There are so many investors left broken after this the collapse of this and other projects. Does anyone know what is happening at The Lagoons site right now?