Nakheel stops accepting credit notes for Palm Jumeirah

Dubai developer says there is healthy demand for plots on man-made island

Nakheel, the Dubai-based developer, has stopped accepting assignable credit, popularly known as credit notes, issued to investors in its long-term projects for purchasing properties on The Palm Jumeirah, Emirates 24|7 reveals.

“We are no longer accepting credit (notes) for Palm Jumeirah. We have given our investors ample time to make their decision… we can’t wait for them forever. It's only cash transactions on the Palm,” company Chairman Ali Rashid Lootah said.

He added: “The investors can use the credit, however, to buy properties in its other projects.”

Nakheel’s sukuk document, issued in August last year, revealed that land reclamation for the Palm Jebel Ali had been completed with several islands being reclaimed with respect to the Palm Deira development. However, reclamation work on the fronds, the crescent and the crown has been classified as a longer-term project.

Last month, Nakheel, wholly-owned government developer, said there remains a healthy demand for plots of land on the Palm Jumeirah. It sold a 93,178 square metres (305,704-square feet) prime plot on the Palm Jumeirah Trunk for Dh400 million, or Dh14,014 per square metre, to a local investor.

In April, it sold a 5,574-square metre plot on Palm Jumeirah Pointe, opposite Atlantis, for Dh87 million.

“There is healthy demand for properties on Palm Jumeirah. Prices have gone up and investor confidence is back… things are definitely moving in the right direction,” Lootah had told this website.

On average Frond N, plots were sold for Dh860 per square feet, while the remaining stock was likely to fetch them premium.

“We are not in a hurry to sell the remaining plots. We are also not planning to sell plots on Frond G… we have retained it as our land bank.”

Emirates 24|7 reported in July that prices of Signature and Garden Home villas on the Palm Jumeirah had risen, registering average increase of 11 to 25 per cent in first half of 2012 compared to same period last year.

Since last year, residential plot prices in some parts of The Palm – notably Frond N – have increased by 30 per cent, the company said.

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