Nakheel resumes work on more projects

Dubai: Master developer Nakheel said it has resumed construction of more homes at sites where work had stopped pending the completion of a financial restructuring exercise.

The two sites include a fresh set of 523 villas and terrace homes in the Al Furjan project, with Arabtec Construction expected to deliver these in the first quarter of 2012; and the recommencement of construction work on 525 four-bedroom villas in Jumeirah Park, with Pauling Middle East expected to deliver them in the same quarter.

"In addition, Jumeirah Park will recommence work on 289 three-bedroom villas through Al Huda Contracting Company, which is expected to be complete in the fourth quarter of 2011," a Nakheel spokesperson said.

Al Furjan witnessed resumption of construction activity in September, when Arabtec restarted work on 300 villas.

Support

On Thursday, Nakheel said work on Jumeirah Golf Estates has resumed after the project received the necessary support from the Government of Dubai to recommence development. Associated Construction and Investments Company (Ascon) is expected to "remobilise infrastructure works on site shortly", the spokesperson said.

Nakheel is in the process of restarting its "short-term" projects in line with the restructuring plan expected to be finalised by the end of this year.

Chief executive Chris O'Donnell had told Gulf News at the site of the Al Furjan resumption in September that all the agreements with contractors would be in place by the end of October and work on eight short-term projects would begin in November.

Healthy discussions

"We've had good discussion with the banks and consolidations, restructuring should be pretty much completed by the end of the year," he had said.

Al Furjan, off Emirates Road in Dubai, is the first project on which Nakheel has reached an agreement with its contractor working on 300 villas to complete what was started two years back. Arabtec's Al Furjan villas will be finished in the first quarter of 2012, Nakheel said.

"We're in contact with all our customers and those in longer-term projects are participating in swaps to short-term ones, Al Furjan included," O'Donnell had said.

Short-term projects are phases or components of master developments where construction has progressed significantly.

Nakheel chairman Ali Rashid Lootah also said last month the company was confident that the restructuring of its debts will be completed by the end of this year.