The Lagoons, a Dh64-billion project by Sama Dubai, has not been cancelled and so plot owners are not entitled for any refunds, Emirates 24/7 can reveal.
“There will be no refunds to plot owners… I am developing The Lagoons,” Khalid Al Malik, Group Chief Executive Officer, Dubai Properties Group, said.
“I don’t owe them and I am not going to commit the mistakes of the past. If I put the infrastructure, build the roads, etc and then no one builds that will be unfair for us. So what are we saying to those who have invested in that area… ‘if you want to build give me your design, contractor and consultants name, and your commitment in writing and then I will put an infrastructure for you’.”
His response came after a private developers raised the question of refund, citing suspension of work at the project.
A private developer, who has invested Dh65 million in a plot of land, on conditions of anonymity, told this website: “We have written to the master developer to refund our money as the project has been stalled, but there has been no response from them. We are weighing our options of taking them to court.”
Al Malik reiterated the equation was simple and straight, saying, “The market needs to pay us the billion they owe us so as to enable us to deliver and not ask for infrastructure without paying their dues.”
In August 2009, Dubai Holding consolidated its real estate companies, bringing Dubai Properties, Sama Dubai and Tatweer under the umbrella of Dubai Properties Group.
He dismissed market rumors that Sama Dubai had sold off its international projects, saying, “We are reviewing projects which haven’t been launched.”
“The Qatar, Bahrain and Rabat, Morocco projects are under review. We are continuing with our Casablanca project,” he added.
In April 2006, Sama Dubai launched the 70 million square feet waterfront project on the Dubai Creek. The Lagoons will have seven islands, comprising of residential units, shopping centres, office buildings, and marinas. These detached islands will be interlinked with bridges.