The estimated $577m Bay La Sun residential village at King Abdullah Economic City (Kaec) has been postponed indefinitely.
Local developer Emaar Economic City (EEC) made the decision to stop construction onsite in early July, says a source close to the project.
The postponement comes amidst rumours that EEC is planning to accept a $1.3bn loan from Saudi Arabia’s Finance Ministry.
The first phase of construction in Kaec is scheduled to be completed by the first quarter of 2012 but, in light of recent developments, contractors working on the prject are predicting that EEC will struggle to achieve its goal.
The two million sq m Bay La Sun project was launched in September 2007 and, until now, was touted as the city’s best option for luxurious living.
EEC delivered the 250,000-square-metre first phase of Bay La Sun at the start of this year but ground to a halt shortly thereafter.
Bay La Sun was designed to include the following elements:
- 16 residential towers
- An international school
- 2-storey car park
- 23,000 sq m yacht club & marina
- 5 associated buildings for retail & restaurants
Bay La Sun and the estimated $500m Esmeralda village make up the first phase of residential development at Kaec. Esmeralda was postponed indefinitely in April this year.
As residential development flounders, two announcements in June illustrate the developer’s choice to focus its resources on Kaec’s industrial sector.
France’s Sanofi-aventis signed a contract on 29 June to build a pharmaceutical manufacturing plant in Kaec’s Industrial Valley (MEED 30:6:10).
The local Huta Marine Works commissioned the world’s largest cutter suction dredger in early June to being work on the Kaec sea port.