Will Santevill ever get completed?

Completion of Santevill, a mixed-use development in Business Bay, remains uncertain as the bankrupt Sungwon Corporation has yet not communicated its plans for Dubai, Emirates 24/7 can reveal.

Investors, who have paid almost 60 to 70 per cent of the money to the developer, say there has been no communication from the developer on the project.

“We did try to get in touch with company officials in South Korea, but nothing has been communicated to us.

The project is 75 per cent complete… we know for certain that the material for the façade and MEP work is lying there,” said Rakesh Wifi, an investor in the project.

He said Santevill investors had met Real Estate Regulatory Agency (Rera) officials and had informed them of their concerns.

“We approached Rera officials who then got a meeting arranged with the master developer. As per our contract, the master developer takes over the project if the developer defaults and will stand in its place for the purpose of this agreement or construction contracts.”

Ashok G, another investor, said: “There is no communication coming from the company and we are uncertain as to what will happen to our investment.”
 
Santevill is a Dh400 million 25-storey tower built on an area of 54,000 square feet, and will contain 195 residential units.

In Santeview, a mixed-use tower in Cultural Village, investors, who have paid almost 25 per cent of the amount, said the developer had commenced enabling work, but now the plot has been refilled with sand.

According to Rera’s Masaar (progress indicators) dated December 2009, “works have progressed on site with the enabling and piling works being substantially completed.

However, the shoring got damaged from one side with the developer taking up the matter with the insurance company and authority. The project is currently on hold until the investigation is finalised.”

“Most of the investors in the project have paid 25 per cent… the project was set for completion by the end of 2011, but we for certain know that it will never get going,” Wifi said.

The Dh1.5 billion Santeview project will comprise a 32-storey office and a 40-storey residential tower.

Founded in 1978, Sungwon is a large-scale integrated real estate development, construction and engineering company that employs more than 2,000 staff.

The publicly traded firm is listed on the Korean Stock Exchange.

In, March, Sungwon filed for court receivership to get its management back on track and requested help from the court in rescheduling its debts with creditors.

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