Plantation comes under scanner over land deal

Dubai: Plantation Holding, the $3.5-billion equestrian development in Dubailand, is under further scrutiny following confirmation that Dubai Islamic Bank (DIB) repossessed a substantial amount of land in the development.

Amid frenzied rumours that DIB had bought assets of Plantation, the Dubai Financial Market (DFM) suspended trading of shares in DIB until they provided confirmation that they had taken over the assets of Plantation.

DIB has taken over Plantation in order to recover funds previously lent to the company.

In a statement on the DFM's website, DIB yesterday confirmed that they have "assumed ownership of the land which is the site for a premium property development project, known as Plantation project."

DIB is also keen to assure investors that they have always maintained control.

Foreclosure

"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.

Investors are wary of such news as recent events of corruption and fraud have ravaged Dubai's valuable reputation, especially in the real estate sector.

Tom Woolf, former England rugby-pro and now joint director at Plantation, initially said through a spokesperson the company was "unable to comment until the DFM and DIB finish investigations."

In a statement later, he said: "Dubai Islamic Bank has enforced security over Plantation Polo & Equestrian Resort located in Dubailand. The owner of Plantation strenuously disputes that Dubai Islamic Bank had the legal grounds to do so."

Woolf made no comment on the news that his friend, business partner and Plantation owner, Arthur Fitz-william, is in police custody.

During an interview in June, Woolf had told Gulf News that the Plantation development would be "up and running" in two years. Plantation was also due to hold its first international polo events next April.

However, the likelihood of this now happening is now unclear as the future of the 20 million square foot development hangs in the balance as does the futures of first-time players in Dubai real estate, Woolf and Fitzwilliam.