No need for more support: Nakheel

Nakheel, the master developer of the Palm Trilogy and The World, said on Wednesday it will not need any further cash support from the Dubai government and may eventually not use the entire proceeds from the $8 billion Dubai Financial Support Fund (DFSF).

“We will not be needing any additional funding… We have our own cash… a number of fixed deposits. We are also trying not to use the entire support fund,” Nakheel Chairman Ali Rashid Lootah said.

In March 2010, Nakheel said it will receive $8 billion in cash from the Dubai government, taking the total support to $9.2 billion, and enabling the company to repay contactors and complete projects.

Lootah said the company had already repaid its $750 million sukuk, which matured on January 16, and is on track to issue a $1.63 billion sukuk in the first quarter. The company also expects to complete its agreement with creditors “soon”.

“We are in process of negotiations with our creditors. We are about to sign a major contractor soon. Officially, we reached 91 per cent overall agreement. Within two weeks, I hope to finish all agreements with creditors.”

Two developers have physically commenced work on their respective islands while work on two more developments were in the pipeline, Lootah added.

The World development will cover approximately 931 hectares and add an additional 232km of beach front to Dubai's coastline. There will be 300 islands reclaimed from the sea in the shape of the world map.

Seventy per cent of the islands have been sold and the rest is kept by Nakheel. The islands range in price from $20 million (Dh73.4m) to $50 million.

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