UAE | Housing & Property
Bank takes control of land for $3.5b real estate project
Dubai Islamic Bank said on Thursday it has reposessed a "substantial area" of land in a $3.5-billion luxury theme park project in the latest controversy to hit Dubai's booming real estate market.
Dubai: Dubai Islamic Bank said on Thursday it has reposessed a "substantial area" of land in a $3.5-billion luxury theme park project in the latest controversy to hit Dubai's booming real estate market.
Plantation Holding, the company behind the project in Dubailand, said the bank did not have "the legal grounds to do so." DIB has taken over Plantation in order to recover funds previously lent to the company.
In a statement on the Dubai Financial Market's website, the bank confirmed that they have "assumed ownership of the land which is the site for a premium property development project, known as Plantation project."
The development worried investors, who scrambled to figure out the financial impact of the foreclosure on the bank. DIB shares ended 3.18 per cent lower to close at Dh6.40.
Earlier, amid frenzied rumours that DIB had bought Plantation assets, DFM suspended trading of shares in DIB until the bank provided confirmation. "At all times, DIB had strong control of the security, as well as other securities covering the same transaction and waited on foreclosure as per the legal requirements of the foreclosure process," DIB said in the statement.
More from UAE Housing & Property
More from UAE
Community Reports
-
Keep recycling bins open
People should be allowed to do their part as the world moves towards a greener future
-
Bridges needed
Al Ittihad Road has no pedestrian facilities as one nears Sharjah
-
Street lights needed
Authorities urged to act with haste before a major accident occurs in Al Nahda, Dubai
-
Motorists ignore stop sign on buses
Overtaking school vehicles can put students' lives at risk
Latest news
- Dubai Municipality plans new zoo in emirate
- Strong winds and haze expected in the UAE
- Dubai Police deny reports of Burj Khalifa fire
- New road eases traffic problems in Dubai
- Abu Dhabi hosts strong man contest
- Farmers to be taught techniques to improve yield
- Keep recycling bins open
- President of Wollongong varsity about his plans
- Challenging role in Libya
- Parachuting event promises rich fare
- UAE ministry backs efficacy of Tas'heel system
- UAE students on research trip to Antarctica
- Brothers held in Sharjah for possessing heroin
- Fund drive for displaced Syrians launched
- FNC has kept pace with development — Al Murr






