Not so Limitless
Paul Green, the CFO of Limitless, has resigned. According to rumors, the company is so strapped for cash it has funds to pay employees for only four more months.
November 20, 2008 2:49 by kippreport
A few weeks ago, Kipp got word that Paul Green, the CFO of Limitless has stepped down. Apparently, his resignation has something to do with poor sales and dwindling fund. In fact, rumor has it that Limitless can afford to pay employees only for next four months. Its monthly wage bill is AED28 million.
The real estate developer, which has expanded its development portfolio to 11 projects worth AED404 billion in several overseas locations including India, Malaysia, Vietnam, Saudi Arabia and Russia, has assets worth over AED110 billion.
Its latest release, Arabian Canal, involves developments along an ambitious 75-kilometers canal. Unfortunately, it hasn’t attracted many buyers. Jamal al Suweidi, the sales manager for Arabian Canal referred us to the company’s PR executive Rebecca Rees for comments: “Construction work for phase I (about nine kilometers) of the Arabian Canal is in progress, and we are excavating 100,000 cubic metres of sand every day,” Rees said. “The five-year long project has been split into 10 phases and we have already invited tenders to bid for Phase II. Also, we welcomed 12,000 visitors at our stall during Cityscape, double the number that came last year,” Rees said.
But being a master developer, Limitless would be looking to sell plots for development on to companies that would then build actual residential and commercial projects; so how has the sales uptake been? “We haven’t started selling yet,” said Rees. Then why is Limitless paying for enormous, double-page ads to invite buyers?
Perhaps it’s just a matter of patience. A real-estate broker who did not wish to be named believes the current market conditions are simply not conducive to new projects, especially those that involve a long gestation period: “It will take an estimated 10 years for the project to take shape,” he explained, “people just do not have the foresight to visualise how it will turn out, nor do they want to invest cash for such a long term.”
But it isn’t just the long wait. It’s also the uncertainties of investing properties like Arabian Canal. When a CEO leaves, investors want to know why. And when there’s rumors that Limitless can’t afford to pay their employees, potential property owners want to know if it’s true. What this really boils down to is transparency, which is crucial during a time like this.
So, Limitless, what’s going on behind that red and white façade of yours? —NS