Stalled, sinking, on sale, and a suicide
What’s going on at The World? As one island goes up for sale, Kipp takes time out for an update on one of Dubai’s most prominent – and most troubled – projects.
August 2, 2010 4:50 by Sam Potter
It’s not much, considering the number of islands in total, but it’s a start. The developers will no doubt be hoping that the sinking fears prove unfounded, though physical sinking is not the project’s only concern. Tanking in economic terms seemed a far more realistic prospect not long ago, and explains why the Daily Mail could see little development progress. The World was built by Nakheel, who suffered badly in the financial downturn. The ramifications have been significant for the project, not least because some real estate speculators have gone bankrupt.
The Ireland island seems to have had the most bad luck. The developer Larionovo – which had planned an Irish themed resort, including marina, apartments and villas, a gym, hotel, and an Irish-themed pub – was placed in liquidation (bankruptcy). John O’Dolan, one of Ireland’s leading building developers and a key part of the Ireland project, is thought to have taken his own life as a result of financial problems in March of last year.
And although the whole World project, having waited out the worst of the crisis, appears ready to get underway once more, this week there was a timely reminder that there is still a long way to go. The owner of Italy announced that the island was up for sale for AED 80 million, reported Emirates 24-7. According to reports, “The 460,000 square feet island is complete and a huge discount is available on the original price through credit notes. Therefore, the buyer can save a good fortune.”
It seems that, having paid AED 25 million as a down payment, the owner now wants to offload the investment.
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