NewsNakheel offer investors in Palm Jebel Ali more options
Close to 700 investors in Palm Jebel Ali have expressed their dissatisfacion with Nakheel’s offer of alternative properties and have announced plans to bring lawyers into the matter.
Nakheel recently received US$9bn (Dh33bn) from the Dubai Government to revive stalled projects and settle debt, and have now announced more options to investors in long-term projects, such as Palm Jebel Ali.
Options
The options outlined by Nakheel are:
- Staying in the project
- Swapping into near-term projects
- Consolidating into other owned properties
- Consolidating into a third-party property
- Receiving credit that will be useable against any property at anytime and redeemable in five years
History
The debate began late 2009 when Nakheel offered buyers of waterfront homes on Palm Jebel Ali alternatives in Jumeirah Heights and Al Furjan. The buyers declined these offers, saying the options were “inadequate and not acceptable”, and said they would hire a law firm to represent them.
Property prices for a villa on Palm Jebel Ali plunged from $4.35m to $2.45m in just two months when the financial crisis hit the artifical island in second half of 2008. The project was launched in 2003, but came to a halt in 2008 and on April 10 this year investors will meet in London to sketch up a plan how to put pressure on the project.
Further Reading
« Kempinski Residences at Palm Jumeirah ready for handover | Kuwaiti NREC launches Dh1.2bn project in Abu Dhabi »
