Morning round-up: Hydra Village "will be built", says al Fahim

This just in: Sulaiman al Fahim, the chief executive of Abu Dhabi's Hydra Properties, has moved to assure investors in Hydra Village that their homes will be built. Mr al Fahim and his commercial director, Ahmed Khalil, are meeting with buyers today to try and resolve some of the disputes that have centered on construction delays, payments and prices rises.

"There is no doubt that we are building the homes," he told The National's Angela Giuffrida. "We all have to report to the Abu Dhabi Government and so we have to deliver what we promised, otherwise we'd be in trouble."

Hydra Village was launched in 2006 and was due to be completed this year, but now won't be ready until late 2011. The delays were due to changes in the masterplan, which Mr al Fahim said have "made the project better".

Defaulting customers have received emails and calls in recent weeks saying their contracts will be cancelled and all deposits will be kept by the developer unless outstanding dues are settled. "Most of the people complaining have only paid 10 per cent," added Mr al Fahim. "Each customer has their own story - some have lost jobs or have loans to pay. I have no idea why some are so angry, other than just to try to pull out of the deal."

He added that a new payment plan had been drawn up, allowing customers to pay 2.5 per cent every two months until the project is completed, compared with a previous plan that required buyers to pay 10 per cent every three months until completion.

Mr al Fahim also refuted claims that investors had been denied access to the site.
"We are allowing them to go to the site," he said. "But we can't let them all go at once because of safety issues. They have to register a visit first." He added that customer complaints were being dealt with, with meetings scheduled every day. "And I have replied to every single email individually," he said.

The interview this morning is the latest chapter in the saga of Hydra Village's long-running dispute over construction delays, as reported in this morning's paper by Ms Giuffrida.

Also in the paper this morning, Aldar's headquarters building, which rises from the Al Raha beach sand like a giant vanity mirror, is now open for inspection, The National's Nathalie Gillet reports. The Dh1.1 billion building will be ready by the end of the year, and brokers are beginning to hunt for tenants. Aldar will take the top floors, while the remaining 80 per cent is available for rent.

Aldar also said yesterday that it will issue corporate bonds in a move that will test the appetite of international investors for exposure to the UAE property market, reports The National's Uta Harnischfeger.

And MGM Mirage, the Las Vegas leisure operator, will run three hotels on a multibillion-dirham development close to Palm Jumeirah, reports The National's Angela Giuffrida and Rebecca Bundhun. The developer of the Dubai Pearl project, Pearl Dubai, said it would bankroll and build a 250-room Bellagio hotel, a 350-roon MGM Grand hotel, a Skylofts Hotel, while MGM Mirage Hospitality would manage the properties.

The National's Hani Bathish reports that a former board member of real estate developer Deyaar pleaded not guilty yesterday to a charge of asking for and accepting a bribe of Dh11.75 million from a businessman in a land deal in Dubai Marina.