Representatives of 380 investors will consider legal action if terms are not met
Dubai’s Emaar Properties is to meet with representatives of 380 investors who are threatening legal action over two delayed residential projects.
The dispute is over the delayed completion of the AED900m ($245m) Claren One and AED1.9bn Burj 29 Boulevard developments, both located close to the Burj Khalifa tower in Emaar’s new Downtown district.
The projects were both launched in 2007 with Emaar funding them by selling properties on an off-plan basis, where individual apartments and blocks of apartments are sold before they are built. Individual and institutional investors made payments in instalments during the construction process, effectively funding the projects.
The two Claren One 25-storey residential towers were originally scheduled for completion in February 2010. However, investors have been informed that the project will not be finished until February 2011.
The 29 Burj Boulevard development, which is to consist of two 45-storey residential towers, was originally scheduled to open in March. Emaar has now told investors that project will not be completed until March 2012, adds the source.
Representatives of the investors are to meet with senior Emaar executives on 30 March to try and reach a solution which is agreeable to both sides, according to a source close to the investors’ representatives. The group is willing to take legal action if the issue is not resolved to their satisfaction, he adds.
Emaar declined to comment on the issue.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.