Nakheel hits out at assets report

Chairman says such reports are baseless and harm investors

Nakheel properties has hit back at foreign media reports doubting the real value of its land assets following the issuance of Dh3.8 billion sukuk (Islamic bonds) by the Dubai-based developer to unpaid contractors.

Nakheel chairman Ali Rashid Lootah was reacting to reports by Reuters and other agencies and newspapers that the company’s property is overestimated on the grounds much of it is unreclaimed seabed.

Reuters, citing banking sources in the UAE, said Nakheel’s land plot consists of 350 million sq ft of undeveloped land at Waterfront South. The remainder is made up of 1.3 billion sq ft along the Palm Jebel Ali crescent, of which only 10 percent has already been reclaimed from the sea.

“Such news leaks will only hurt the investors as they are not based on facts and real investment value,” Lootah told the Sharjah-based daily Alkhaleej on Thursday.

“Nakheel’s assets against sukuk have been evaluated by specialized international parties and have been accepted by Ernst and Young auditors and by all financial and commercial creditors…this was evident in the company’s success in issuing Dh3.8 billion sukuk as a first tranche of Dh4.8 billion.”

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