Dubai: Dubai property developer Nakheel will restart five more projects as it receives cash from the Dubai Government to pay off the sukuk maturing next year.
Work will resume on Jumeirah Park, Badrah, Veneto, Jumeirah Heights Clusters, Jumeirah Village the Triangle and Circle, a Nakheel spokesperson told Gulf News.
As the company nears a 95 per cent agreement from trade creditors to move ahead with its debt restructuring and other initiatives to get company financials in order, it said that it is "currently engaging contractors in the short-term projects".
"Some of the short-term projects will be completed in 2011 and we expect that all short-term projects will be delivered by early- to mid-2012," the spokesperson said.
These five projects come after Nakheel announced in October that it would start work on three projects: Emirates Cluster in International City, Al Furjan and The Gardens View villas.
In a statement to Nasdaq Dubai yesterday, Nakheel said that the Dubai Financial Support Fund has given it close to $871 million (Dh3,199 million) to pay off certificate holders for the sukuk maturing in January.
"Trust Certificates due January 16, 2011 will be made in the amount of $816.3 million together with the final profit payment in the total amount of $10.3 million," the statement said.
Additionally, it would be paying sukuk holders a distribution amount of $45 million collectively.
"Following the repayment, Nakheel would have repaid all previously issued sukuk", it said, and requested Nasdaq Dubai to delist them.
Hashem Montasser, EFG-Hermes managing director and head of regional asset management, said: "We're moving in the right direction. All the signs we've seen have been towards working out a solution whether this is on Dubai World level or government related entities.
"I expect it to continue on a positive trend."
Several of Nakheel's off plan properties were sold during the property boom that eased at the end of 2008 as a result of liquidity drying up in the global financial systems.
Places to call home
- Jumeirah Park — a residential development within Jumeirah Park and close to Palm Jumeirah.
- Badrah — the second residential development within the new city master plan of Waterfront, a project at the roots of the Palm Jumeirah.
- Veneto — high-end town houses and villas in Waterfront.
- Jumeirah Heights Clusters — two bedroom lofts within the larger development of Jumeirah Heights that has a Village Centre and The Fronds.
- Jumeirah Village the Triangle and Circle — a community of 6,000 villas and town houses.