Real Estate Regulatory Agency (Rera), the regulatory arm of Dubai Land Department, has formed a committee to oversee projects that have been now put on hold despite being close to completion.
In an emailed statement, a Rera spokesperson said: “We have formed a committee with major developers and some banks that have funded the projects so to know the actual construction status and preserve the rights of investors in those projects, which have reached an advanced stage.”
A few projects in Dubai have been stalled despite having almost 70 per cent of the building being complete. A case to point is Santeville in Business Bay, which has been stalled since Sungwon Corporation, the South Korean company, filed for bankruptcy in March 2010.
RK, an investor in the project, said: “We haven’t heard anything from the company… we last heard the bankruptcy court in South Korea had passed some judgment, but that could not be verified. We are still in dark and not sure when the project will get completed.”
He added: “We (investors) are not certain if the project could be accredited under the Tayseer… we haven’t heard anything.”
When asked if Dubai Properties Group would consider developing the Santevill project, Khalid Al Malik, Group Chief Executive Officer, DPG, had told this website, in May: “There are different clauses and it is not that easy that you go and develop that. There are many clauses which protect other stakeholders… It is very complicated case and is being handled by Rera.”
This website also reported in April that Sungwon Corporation, the South Korean company developing the Santevill project in Business Bay, was considering options such as having an investor on board, or a buyout, to help complete the development.
“We have a strong will to complete this project, but unfortunately we are helpless to do so at the moment. We have to wait till the Suwon Court in South Korea makes a ruling, on which the possible future of the company depends. …we are seeking alternatives that would assist us in completing the project (an investor, or buyout),” Atif Saeed of Sungwon had replied in an email to David Vincent, an investor in the project.
Santevill’s project indicator report on the Real Estate Regulatory Agency website was last updated on March 2009. The Dh400 million 25-storey tower built will contain 195 residential units.