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Dubai’s Nakheel restarts Al Furjan project

Al Shafar first contractor to restart work on project.

September 23, 2010 8:59 by

Dubai developer Nakheel has restarted work at its Al Furjan residential project and expects to start building again on all short-term projects by the end of next month, it said on Wednesday.

“Al Shafar Transport and Contracting Co is the first contractor to recommence construction work on Al Furjan, one of our-short term projects,” Nakheel said in a statement.

“We expect that all short-term projects will be fully mobilised by October 2010,” it added.

Dubai’s once-booming property market was hit hard by the financial crash as property prices fell around 60 percent and billions of dollars worth of projects were put on hold or cancelled.

Nakheel, which overstretched itself building islands in the shape of palms and other ambitious real estate developments, suspended several projects including Al Furjan and a planned kilometre-high tower.

The developer has disputed the validity of a creditor claim filed against it, saying the claim will not delay its debt deal, it said in a statement sent to Reuters late on Tuesday.

Nakheel said it has approximately 85 percent of acceptances, by value, for its debt restructuring deal and “is well on target to achieve its 95 percent acceptance of all payables and claims within the near future”.

Under Nakheel’s restructuring plan, trade creditors have been offered 40 percent of what they are owed in cash and the rest through an Islamic bond, or sukuk.

State-owned conglomerate Dubai World has reached near-unanimous approval for its $24.9 billion debt plan, it said in a statement this month, but Nakheel — its flagship property arm undergoing parallel negotiations — has yet to secure backing for its plan.

In June Nakheel said it planned to restart six projects in Dubai, including Jumeirah Park, Al Furjan, Jumeirah Village, parts of Jumeirah Island and Jumeirah Heights, as well as Al Badra.

It is also revisiting all other projects, including man-made islands The Palm Jebel Ali and The Palm Deira. (Editing by Michael Shields)

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