Friday 6 May 2011

Sao Paulo Development sues Nakheel - The National

The developer that bought the Sao Paulo island in Dubai's The World project is suing Nakheel for allegedly backing out of a deal to transfer its payments into another development.

Sao Paulo Development says in a Dubai World Tribunal claim that it made Dh17.45 million (US$4.7m) in payments to Nakheel, the master developer behind The World, a man-made archipelago off the Dubai coastline representing the globe. The island development was put on hold in the wake of Dubai's property-market downturn, and Sao Paulo says it agreed early last year to transfer its investment to plots in other Nakheel projects.

Nakheel allegedly backed out of that deal, however, even after Sao Paulo put up an additional Dh3.57m of "fresh cash" to ensure it went forward.

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