NEW DELHI — India’s property developer Omaxe Ltd. said Friday it will likely exit two residential projects in Dubai because it is yet to get possession of land from Dubai’s real-estate company Nakheel PJSC.
Omaxe will also seek a refund of about 500 million rupees ($10.6 million) paid to Nakheel as the first installment for buying land for the projects, Rohtas Goel, the Indian company’s chairman and managing director, told Dow Jones Newswires by phone.
“They (Nakheel) have put the projects on hold,” Mr. Goel said. “We have an exit option and if we do decide to exit the projects, we will seek refund of 500 million rupees from Nakheel.”
Dubai’s debt-laden government said Wednesday it will restructure Dubai World–a conglomerate spanning real estate, ports and leisure–and will seek a six-month “standstill” on its debts, including a $3.52 billion Islamic bond due December issued by its unit Nakheel, which is developing Dubai’s iconic palm islands projects.
Omaxe announced in June 2008 that it will spend a total of about 28.50 billion rupees building two residential projects in Dubai, its first investment in the Middle East.
Omaxe plans to invest about 13.5 billion rupees in the first project at Jebel Ali through a special purpose vehicle, Golden Crescent RED and General Trading Ltd.
The second project, involving an investment of about 15 billion rupees, is to be built via another special purpose vehicle, Marine Sands Ltd.
Omaxe has set up a wholly owned subsidiary, Rohtas Holdings (Gulf) Ltd., to implement its foray into Dubai
Sources – http://online.wsj.com/article/SB10001424052748703499404574561200632635142.html?mod=googlenews_wsj
