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Funding shortfall could lead to project share ownership
- United Arab Emirates: Tuesday, May 19 - 2009 at 12:25
Funding shortfall may require an increasing number of private and single-tower developers to offer part ownership options to investors in their projects, according to experts. A few developers in Dubai such as Cirrus Developments are offering unit purchasers the option of becoming a shareholder in the project. In March, Cirrus presented a restructuring proposal to the purchasers of Aquarius Gate project, which will convert their status from "unit purchasers" to "shareholders" in new project company. In attempting to schedule instalments against the pace of construction and enforce minimum requirements before projects can be registered - the resultant funding shortfall will require an increasing number of private, single tower developers to attempt this type of structure. There is a form of regulatory arbitrage being developed, said Mac Capital Advisors, and the consequences 'have probably not been fully explored yet by Real Estate Regulatory Agency (Rera)'.
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StaffTuesday, May 19 - 2009 at 12:25 UAE local time (GMT+4)
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This article was updated on Wed May 20 2009.
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