Nakheel to take control of Limitless

05 July 2010

New board appointed for Dubai World’s economic zone developers

Nakheel, the property arm of the $23.5bn indebted Dubai World conglomerate, has assumed management responsibility for its real estate unit Limitless as part of a board reshuffle.

“The higher committee to oversee Dubai World and its units decided to entrust the board of Nakheel with handling responsibilities of Limitless in a step aimed at setting united strategies and programmes to deal with the real estate sector,” the government said in a statement issued on 3 July.

The aim of the measure is “to unify strategies and activity programmes” of both Nakheel and Limitless in order to provide “the best possible results in the interest of promoters and investors,” the statement added.

Limitless was excluded from Dubai World’s restructuring plan unveiled in March, but it succeeded in rolling over a $1.2bn Islamic loan due later that month.

On 30 June, it was announced that trade creditors to Nakheel will start receiving cash payments totalling over AED4bn ($1.09bn) in early July now that 75 per cent of the firms owed money have agreed to the restructuring terms.

A spokeswoman for Nakheel said that 75 per cent of the property developers’ trade creditors had agreed “in principle” to the deal. This means that they will receive 40 per cent of their outstanding bills in a cash settlement, with the remaining 60 per cent to be repaid in the form of a sukuk.

The government also announced the appointment of a new board of directors for Economic Zones World (EZW) developers, another subsidiary of Dubai World.

Hisham Abdullah al-Shirawi, vice chairman of Dubai Chamber of Commerce and Industry (DCCI), has been appointed as EZW’s chairman.

“The mission of the new board will be to develop the activities of EZW based on regional and global economic conjuncture,” read the statement.

EZW develops and operates economic zones as well as industrial parks with projects underway in Asia, Africa, the Middle East, Europe and the Americas.

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