UAE: The stalled skyscraper project Marina 101 is probably near to getting a new owner. Which, if it happens, will offer much needed relief to investors who bought units as far back as 2005.
Construction industry and banking sources say that a Dubai-based investor has done due diligence on a possible buy of Marina 101. A 6 basement plus 101-storey structure (and 371 metres high). The project is at the 95% of its completion stage, and estimates are that investing another Dh100 million to Dh200 million could see it being fit for occupation.
The Dubai Marina based project stalled after the developer, Sheffield Real Estate, ran up sizeable debts with lenders as well unabled to meet payments to contractors.
The name of the new investor is not out yet. But real estate and other sources say that the buyer’s intention is quite clear and comes with the required funds at hand. Authorities are also working on different ways to fast-track clearance to revive stalled or cancel projects and ensure investor interests get safeguarded.
Sources also added that there was past efforts to revive Marina 101. But there were always problems getting in the way. But this time, everyone involved seems bullish about the deal coming through.
Dubai-Marina launces in 2005 and was 1st building to come up with the hotel and residential elements inside the building. It was one of the most impressive new addresses build in Dubai Marina.
If the deal is struck with buyer will require that all legal claims against the project be brought to “standstill”. Once that happens, contractors sign up to complete the project. The Dubai Land Department is then approach for the final NOC, and the handovers to buyers start.
Moreover the source added “original developer possibly retain some stake in the project through units”. An infusion of cash to finish the project would involve paying off existing contractors under some sort of payout plan. While having a standstill agreement with lender banks.
Investors of Marina 101 apartments are praying that a deal gets finalise as soon as possible. After 16 years of waiting, it is the least they can expect.