UAE's Deyaar may abandon $101 mln Flamingo project

UAE’s Deyaar may abandon $101 mln Flamingo project

No provision against the project was made – says developer.

August 17, 2010 10:55 by Reuters

Developer Deyaar may abandon a Dubai residential project it bought for 372 million dirhams ($101.3 million).

“Management now believes that the master developer may not complete the related infrastructure and therefore, the project may have to be abandoned,” Dubai’s second-largest developer by market value said in its half year financial report.

“Management is of the view that the transaction has become void and therefore should be reversed,” it said, adding it has started arbitration proceedings against the seller, who Deyaar did not identify in the report.

No provision against the project was made, the developer said in the report.

The master developer is Sama Dubai and the project is Flamingo Creek, daily the National reported on Tuesday.

Deyaar said in June it is returning the management of another residential project, Skycourts, to state-owned National Bonds Corp.

National Bonds transferred the development and management of real estate projects Skycourts and Flamingo Creek to Deyaar in 2008.

Deyaar made a net loss of 243 million dirhams in the three months to June 30 compared with 76.4 million dirhams in the same period last year.

(Reporting by Jason Benham; Editing by Dinesh Nair)