Tanmiyat revisiting payment schedules for Living Legends

According to the directive, new developers in Dubai will have to pay 100% of the land price to start selling properties 'off plan' and will have to inject a minimum of 20 percent of the project value to commence construction. In addition, developers will have to link payments to construction status.

Although Tanmiyat has already fully paid the land price of the Living Legends project and has injected more than the required minimum percentage of the project value prior to commencing construction, it continues to maintain its complete compliance with all relevant legislation by now revising the payment schedule of the Living Legends to fulfil the latter condition.

"Tanmiyat is committed to remaining in compliance with all applicable laws. We already own the land for the Living Legends, and we have paid the land price in full to Dubailand; therefore, this new legislation does not significantly affect us. What we have decided to do is to revise our payment schedule to reflect the project construction plan," explains Mr. Firas Al Attili, Tanmiyat Group financial director.

"We believe that this new directive, like the Escrow Account Law (Law No. 8 of 2007), is an important step in building a solid foundation for the future of the UAE's property market, which will ensure its continued growth and shore it up against fluctuations in the global economy. Tanmiyat believes that the implementation of these regulations will also serve to protect the interests of developers, investors and property owners, alike. We remain dedicated to our business partners and committed to realizing all of our projects, including the Living Legends, with the support and cooperation of our clients and partners," Al Attili said.

"Of course, we have already informed our clients of our decision, asking them to stop making payments until the end of April 2009, and we will be working to finalize the revised payment schedule as soon as possible. We will remain in touch with all our clients and will let them know as soon as the revised schedule is ready," Mr. Al Attili added.

The Dhs2.7bn Living Legends is an ambitious multi-purpose development located in the world-renowned Dubailand complex on Emirates Road. Once completed, it will extend over an area of 1,340 million square meters.