Nakheel has announced it will restart five projects, as it receives cash from the Dubai Government
The Dubai-based property developer, Nakheel , will resume work on the Jumeirah Park, Badrah, Veneto, Jumeirah Heights Clusters, and Jumeirah Village, a Nakheel spokesperson reported.
“Some of the short-term projects will be completed in 2011 and we expect that all short-term projects will be delivered by early- to mid-2012,” the spokesperson said.
The decision follows Nakheel’s announcement in October 2010, which said that it would start work on three projects: Emirates Cluster in International City, Al Furjan , and The Gardens View villas.
As Nakheel approaches a 95 percent agreement from trade creditors to move ahead with its debt restructuring, and other initiatives to organize the company’s financials, Nakheel added that it is, “currently engaging contractors in the short-term projects.”
In a statement made to Nasdaq Dubai, Nakheel said that the Dubai Financial Support Fund has provided it with nearly USD 871 million to pay off certificate holders for the sukuk maturing in January, 2011.
“Trust Certificates due January 16, 2011 will be made in the amount of USD 816.3 million, together with the final profit payment in the total amount of USD 10.3 million,” the statement read.
Moreover, Nakheel would be paying sukuk holders a distribution amount of USD 45 million collectively. “Following the repayment, Nakheel would have repaid all previously issued sukuk,” the statement said.
“We’re moving in the right direction. All the signs we’ve seen have been towards working out a solution, whether this is on Dubai World level or government related entities,” said Hashem Montasser, EFG-Hermes Managing Director and Head of Regional Asset Management. “I expect it to continue on a positive trend."
A number of Nakheel’s off-plan properties were sold during the property boom that plummeted at the end of 2008 due to liquidity drying up in the global financial market.
“Some of the short-term projects will be completed in 2011 and we expect that all short-term projects will be delivered by early to mid 2012,” a Nakheel spokesman added before confirming that the projects below will be nearing completion:
• Jumeirah Park: A residential development within Jumeirah Park and close to Palm Jumeirah.
• Badrah: The second residential development within the new city master plan of Waterfront, a project at the roots of the Palm Jumeirah.
• Veneto: High-end town houses and villas in Waterfront.
• Jumeirah Heights Clusters: Two bedroom lofts within the larger development of Jumeirah Heights that has a Village Centre and The Fronds.
• Jumeirah Village the Triangle and Circle: A community of 6,000 villas and town houses.