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Business Home > Nation
 
Nakheel victory in case over The World purchase

(Staff Report) / 8 April 2013

Property developer Nakheel on Sunday announced that the company has won a legal case against Sao Paulo Development and Diamond Developers.

“It was awarded judgment in its favour by the Dubai World Tribunal in the case of... Sao Paulo Development Ltd and Diamond Developers vs Nakheel, The World and others,” Nakheel confirmed in a statement.

In the case, Sao Paulo Development had sought to renege on its commitment to purchase the Sao Paulo island on Nakheel’s The World development. However, The Dubai World Tribunal held that the reservation contract for The World island of Sao Paulo was enforceable and binding.

Accordingly, Sao Paulo Development was ordered to pay The World Dh127.65 million to cover outstanding installments owed on the island and accrued delay fees. The tribunal also ordered the other claimant, Diamond Developers, to pay Nakheel’s Jumeirah Village subsidiary Dh10.95 million.

Sao Paulo Development, which bought the Sao Paulo island in Dubai’s The World island project, filed a lawsuit in 2011 against Nakheel for allegedly backing out of a deal to transfer its payments into another development. The development work on The World island was put on hold after property prices crashed in Dubai following the effects of the global financial crisis.

abdulbasit@khaleejtimes.com

 

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