Dubai: The parked skyscraper project Marina 101 could – finally – be close to having a new owner, which, if it happened, would provide some much-needed relief to investors who have purchased units since 2005.
Sources in the banking and construction sector say a Dubai-based investor has taken due diligence on the possible purchase of Marina 101 – a building with six basements plus 101 stories (371 meters high). The project is at a 97 percent completion stage, and it is estimated that an injection of another 100 million dirhams to 200 million dirhams may make it suitable for the occupation.
The Dubai Marina project has stalled after property developer Sheffield Properties piled high in debt, with lenders failing to make payments to contractors.
The identity of the new investor has not been revealed, but real estate and construction sources say the buyer’s intent is crystal clear and comes with required funds on hand. Dubai The authorities are also working on ways to speed up clearance procedures to revive stalled or canceled projects and to ensure the interests of investors are protected.
There have been previous efforts to revive Marina 101, but there have always been obstacles in the way. This time, everyone involved appears to be optimistic about the deal, the sources add.
New Dubai Court of canceled projects
In December, Dubai established a court to oversee all projects that are late or canceled over the years and ensure that the interests of investors are taken care of. The court’s findings on all of these projects will be the last word.
Prestigious as you get
Upon its launch in 2005, it was hailed as one of the most impressive new addresses to be built in Dubai Marina, and was also among the first to create hotel and residential elements within the building. (The Hard Rock Hotel was registered to manage the hotel, which was to have more than 30 floors dedicated to it.)
“There have been a number of lawsuits filed by both banks as well as individual investors against the developer,” an industry source said. But likewise, there were negotiations that had reached an advanced stage, which necessitated the completion of the building in a fast time frame.
“This will be a relief to investors as it will allow apartments to be monetized once the legal claims are cleared.”
Marina 101 – what made it special
Before its launch and start of construction, the project – one of the tallest buildings in Dubai – was due to be completed by 2008. The unplanned sales were an immediate success, as Dubai Marina was a coveted place with investors who were willing to pay a premium for what was. A prestige project.
The construction cost was estimated at 700 million dirhams to 800 million dirhams. But delays and cost inflation could have added more. The size of Marina 101 is impressive – one million square feet of built up area, 101 floors and six basements. All in a prime location in Dubai Marina.
Putting a New Deal together
The deal, if entered into with the interested buyer, will require that all legal claims against the project be “frozen”. Once this occurs, contractors are registered to complete the project, then the Dubai Land Department is contacted to obtain a final clearance certificate, and deliveries to buyers begin.
The source added that this may also mean that “the original developer may keep some stake in the project through units.” The cash injection to finish the project will include the payment of the existing contractors’ funds under some kind of payment plan with a freeze agreement with the lending banks.
This would allow the new investor to convert some assets into cash. Agreeing to the deadlock agreement is what took some time, but the deal is within reach. “
No more delays
Everyone who has invested in Marina 101 apartments hopes that the transaction will be completed as soon as possible. After 16 years of waiting, that’s the least they can expect.
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