Dubai: Dubai's Real Estate Regulatory Authority (Rera) has said that people who have invested in the Plantation Equestrian and Polo Club, the troubled development in Dubailand, will be compensated after land for the project was repossessed by Dubai Islamic Bank (DIB) over payment default by the project's developer.
Marwan Bin Ghalita, CEO of Rera, has asked investors to approach DIB with documents proving their ownership.
DIB said in a statement on Thursday that it had "assumed ownership of the land which is the site for a premium property development project known as Plantation project."
The Plantation was the collateral for a loan provided by the bank.
"The rights of all investors are 100 per cent guaranteed," a local Arabic daily quoted Bin Ghalita as saying.
Bin Ghalita said a dispute had broken out between DIB and Plantation's developer over the plot's development shortly after they had reached a deal and sold some units.
According to reports, Plantation owner Arthur Fitzwilliam is among several people in police custody in connection with a corruption investigation.
Others being held include Omair Mooraj, the Middle East head of Islamic banking at JPMorgan Chase and a former employee of DIB and Charles Ridley, a Bahrain-based British banker.
When launched in 2004, the $3.5-billion Plantation Equestrian and Polo Club promised air-conditioned stables for 800 horses.