Nakheel, the indebted real estate arm of state-owned Dubai World, will receive funds from Dubai to complete the delayed Jumeirah Golf Estates project, the company said Monday.
“The government of Dubai has committed to providing significant financial support to Jumeirah Golf Estates… our contractors have recommenced work at the development,” the company said in an emailed statement.
Jumeirah Golf Estates, home to the Dubai World Championship, saw work suspended on two of its four golf courses in 2009 following difficulties over contractor payments.
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The 306-home real estate development was launched by Dubai World subsidiary LeisureCorp and is scheduled for completion in 2012.
Leisurecorp’s activities were merged with those of Nakheel in June last year.
Nakheel said Friday it had won near-unanimous approval from financing banks for its plan to restructure $10.9bn in debt.
Company CEO Chris O'Donnell left Nakheel last week “after completing his contract terms,” the developer said.
Nakheel was one of the biggest casualties of Dubai’s real estate downturn, which saw prices halve from their 2008-peak and almost half of developments in the emirate cancelled.
The developer's inability to meet its debt obligations, in the wake of a property collapse and the global credit crunch, helped trigger Dubai's debt crisis in 2009.
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