'Heart of Europe' in The World gets going again

Work on The Heart of Europe development is all set to start soon as The World, a Nakheel subsidiary, and Kleindienst Properties, developer’s of project on The World island have amicably resolved their dispute.

An out-of-court settlement ends the need for the two companies to involve the Dubai World Tribunal anymore. Under the settlement terms, Kleindienst will pay Dh622 million to The World and recommence work on the project.

The settlement follows the Dubai World Tribunal decision, ordering Sao Paulo Development Limited to pay Dh127.6 million to The World in outstanding installments and accrued delay fees.

“This mutually-beneficial agreement with Kleindienst Properties is another major milestone for The World, further proving that the project is alive and ready for development,” a Nakheel spokesman said.

“In addition, we are witnessing renewed interest in this project, with a growing number of designs and proposals being submitted for review.”

Josef Kleindienst, CEO, Kleindienst Group, said: “We are delighted to be finally able to continue work on this iconic project and are excited about the prospect of delivering our unique vision for The Heart of Europe development to investors.”

The developer will start work on the Germany island and will complete the showcase villa this year, while construction of 20 other villas gets underway.

Germany was to be the first of the six islands to be developed as part of a luxury holiday project which was announced in December 2009.

“We are also in the process of renewing approvals for all six islands,” he disclosed.

The Heart of Europe comprises six islands: Germany, Austria, Switzerland, Netherlands, Sweden and St. Petersburg with six additional destinations being Sochi, Belgium, Luxembourg, Geneva, Monte Carlo and Poland, the company website says.

The islands are linked by unifying architectural principles and characterized by sleek designs inspired by their namesake countries. According to the developer, the plot size is six million square feet with built-up area of 4.2 million square feet.

According to Nakheel subsidiary, all the islands are completed and ready for development by individual investors.

In December, Dubai World Tribunal judgment had ruled that The World, as master developer, does not carry out the development itself with the purchasers having to undertake the substantial civil engineering works required for compaction before any property development can take place.

In the World vs. Penguin Marine Boat Services case, Ali bin Thalith, Director, Nakheel Marinas, had said that The World was an ongoing and live project.

“All of the individual islands have been reclaimed and to date 145 islands have been sold. The other islands are for sale and the website shows The World as a live and active project,” he had said.

Nakheel has said it has sold 70 per cent of the islands in The World project.

The World

The World project is nine kilometres wide and seven kilometres long. It covers an area of 931 hectares and will add 232km to Dubai’s natural 67km of beachfront.

The islands range from 150,000 to 450,000 square feet in size. The project is divided into private estate island zones, commercial zones, which have low/mid/high density resorts, hubs for ferry transfer points and public visitor areas.

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