Business | Property
Channel Sponsor
Land Department resolves dispute over Palm Springs
Damac's controversial Palm Springs project on the Palm Jebel Ali is now going ahead, according to Dubai's Land Department.
- By Suzanne Fenton, Staff Reporter
- Published: 00:15 April 17, 2008
Dubai: Damac's controversial Palm Springs project on the Palm Jebel Ali is now going ahead, according to Dubai's Land Department.
The Land Department has successfully mediated between Damac and the Palm Springs investors to end the dispute, according to Sultan Bin Butti Bin Mejrin, director-general of the Land Department.
Bin Mejrin said the Land Department intervened to protect both investors' interests and Dubai's global reputation as a thriving property market.
The Palm Springs project is now due to go ahead five years after its launch.
It will be developed in keeping with the original investor contracts and Damac's contract with Nakheel, master-developer of the Palm Jebel Ali.
"Damac has undertaken to implement and accomplish the project according to the contracts with investors and has shown a keenness to abide by the laws and regulations of the department," he said.
Bin Mejrin emphasised that the land is still registered as Damac property.
Redesign
The project was originally cancelled as the Palm Jebel Ali had been redesigned. According to Hussain Sajwani, chairman of Damac Holding, "the building forming the Palm Springs development cannot be situated on the reallocated plot."
The mediation comes after investors threatened to take the issue to the Ruler's Court two weeks ago, after they were offered only six per cent per annum on their initial investment amount.
Share this article
Gulf News classifieds
Popular in Business
Business Editor's choice
-
Media baron Murdoch cries foul
Murdoch's suggestion of content theft infuriates digital evangelists
-
Jobs vital to global recovery
Higher unemployment reduces purchasing power and revenues
-
Abulhoul Aviation to begin operations
New charter company will use Cessna 206 Station Air to transport tourists
-
Banking
Mortgages: there's light at the end of the tunnel
UAE buyers are securing home loans again
