Amlak seeks Dh82m damages over Sky Gardens

Amlak is seeking money over failed tower block sale (CRAIG SCARR)

Islamic mortgage company Amlak Finance yesterday said it is seeking Dh82 million in damages after an initial agreement to buy a tower block in Dubai fell through.

Amlak charged in a statement on the Dubai bourse website that the agreement to buy Sky Gardens at the Dubai International Financial Centre for Dh1.65 billion collapsed because a unit of Kuwait's Al Mazaya Holding was unable "to honour the terms and conditions stipulated in the MOU".

The unit, First Dubai Real Estate Development Company, subsequently said it was willing to go ahead with the sale, despite the lapse of a May 31 deadline. "That is not an absolute deadline and we are willing to proceed," First Dubai said in a statement on the Dubai bourse website.

If the sale falls through, it would keep Amlak's Dh82 million deposit, it said.

Arif Al Harmi, Amlak's chief executive officer, could not immediately be reached for comment.

Al Mazaya said last month it will make a profit of KWD46 million (Dh637m) from the sale of the project to Amlak through First Dubai. It owns 76.7 per cent of First Dubai. (Reuters)