Business | Property
Haz Tower impasse set to end as Damac and Al Zarooni near pact
Confusion over the Haz Tower project in Business Bay may be nearing an end as both Damac and Hilal Al Zarooni will have to sign an agreement by next week, according to Land Department officials.
- By Suzanne FentonS, taff Reporter
- Published: 00:38 May 16, 2008
Dubai: Confusion over the Haz Tower project in Business Bay may be nearing an end as both Damac and Hilal Al Zarooni will have to sign an agreement by next week, according to Land Department officials.
Emad Eldin Farouq, legal counsel for Dubai Land department, said, "There is a settlement agreement that both parties have to sign. They have no choice."
The signing has so far been delayed due to a possible second option.
The Haz towers project was launched July 8, 2007, after Damac bought it from Dubai Properties before selling it on to Hilal Al Zarooni. The cause for the delay is unclear but Eldin Farouq says it is due to the reservation agreement. "Damac blames Zarooni for breaking the reservation agreement. Zarooni was meant to sell the building after approval."
However, Damac had received no authority for the floor plans or marketing of Haz Tower, according to official documents received by Gulf News. "Damac didn't have approval from Zoning Authority for the floor plan and elevations for Plot BB.B.01.040 [Haz tower plot].
"Damac has not taken any approval for marketing any tower on the above plot. Damac, owner of plot BB.B.01.040, has not got any approval to start selling the tower or units in the plot which need bank guarantee first to be provided to Dubai Properties."
Last week, a Damac employee said that the Haz towers project is "on hold, according to a statement by the chairman".
However, Niall McLoughlin, senior vice-president of corporate communications at Damac, denied this. "Haz towers is going ahead. It would be inappropriate for me to further comment on Haz towers. As you know, it is sub-judice," McLoughlin said in an email to Gulf News. Another Damac employee said any queries should be directed to Hilal Al Zarooni.
Investors are becoming increasingly frustrated as there appears to be no reason why the project shouldn't go ahead.
Hilal Al Zarooni told Gulf News, "We're waiting for the Land department to give their answer. They said it would be next week."
However, investors are losing confidence in the Land Department as they have now had the complaint for over six months.
Eldin Farouq said yesterday that "the chapter will be closed next week."
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