Investors scrap joint venture to build tower in Dubai

A partnership between UK and Dubai investors to build a luxury residential development in the emirate has been abandoned after hitting legal difficulties, Arabian Business has learned.

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By  Richard Agnew Published  February 5, 2006

A partnership between UK and Dubai investors to build a luxury residential development in the emirate has been abandoned after hitting legal difficulties, Arabian Business has learned. Plans have been shelved for the Miramar project, a 40-storey complex being developed in Dubai Marina by Al Rostamani Investment and the UK’s Connor Construction (and not the Al Rostamani Group, as previously reported). According to the investors’ sales representatives, apartments in the development have been taken off the market indefinitely and purchasers are now being refunded. Flats costing up to US$500,000 were being offered in the complex, with completion set for 2008. “They [the developers] have decided not to proceed with the project and withdraw it from the market,” said an official at Cluttons Dubai, an agency hired to sell flats in the complex. “It was very unfortunate but there was not much we could do. All deposits taken from purchasers have been refunded or are in the process of being refunded and we are endeavouring to find them other properties.” Another Dubai estate agency confirmed that apartments in the development were no longer available for sale. The move is the latest blow to hit Dubai’s rapidly growing property market, following delays to Nakheel’s Palm Jumeirah mega-project and Damac’s Waves development. Flats in the Miramar complex were mainly being promoted in the UK, with the help of celebrities such as jockey Frankie Dettori and actor Vinnie Jones. Only around five properties were believed to have been sold, while construction on the project had yet to start. Al Rostamani Investment declined to comment on why the development was not going ahead. An official at the firm would only say that the project had been “put on hold”. However, its joint venture with Connor Construction is believed to have run into legal problems, forcing the partnership to be disbanded. The Miramar project was expected to include one, two and three bedroom flats, as well as a promenade of shops and a small park. Potential buyers were promised 42 inch plasma TVs and home cinema systems with each flat, as well as various other perks. The development was to include a 40-storey tower in the heart of Dubai Marina — a huge complex which is eventually expected to house around 120,000 people. A source close to Al Rostamani Investment said the company may decide to re-launch the project without its original partner, although no such decision had yet been made.

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