Sorouh not suffering from liquidity crunch
Sorouh Real Estate is not suffering from a shortage of liquidity and will be able to complete all its projects, according to a senior official.
"We do not face a shortage of liquidity," said Chief Property Development Officer Gurjit Singh. "On the contrary, we have a great deal of liquidity in terms of the sukuk we offered before the beginning of the global financial crisis, and the company's capital. This liquidity is sufficient to complete our projects, whose total cost is estimated at Dh70 billion."
"No small or large project being undertaken by the company has been suspended. We are hurrying to finish the two largest projects, Shams Abu Dhabi and Al Ghadeer, which are integral cities, not residential towers. Work on these two developments is going ahead at an excellent pace."
He said Sorouh was committed to delivering Shams Abu Dhabi at the beginning of 2010 and between 50 and 60 per cent of the work has been completed. "We are currently focussing on finishing under-construction projects and are not considering the launch of new ones."
Singh said Sorouh would not allow buyers of residential units to delay making their monthly payments.
"We have many sources of finance with great rates – Abu Dhabi Finance, Aseel Finance and other banks. Finance is available and each developer has its own strategy, but we will not allow the delay of payments."
Asked if the international financial crisis was affecting the company, Singh said: "All the residential units in our previously announced projects that have been offered for sale are completely sold. Therefore we are not feeling an impact from the crisis on our projects. There might be negative effects in the future, though we have no current plans to launch new projects."
Singh dismissed rumours that the company had terminated the employment contracts of some of its staff because of the crisis. "We have not laid off any employees since the beginning of the financial crisis and we will not make any employee redundant because each has duties to perform."
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