Dubai raises the safeguards in project revivals | GulfNews.com:
"Investors buying up stalled projects in Dubai now have to clear off all outstanding payments originally associated with these ventures, according to market sources.
It means that if investors had bought property units when the project was launched by a developer and then it got stalled for any reason thereafter, they will now have to be first compensated by the new investor who wishes to acquire the project or the plot, the sources added. Only after these are cleared can the new investor revive the project.
“It’s just recently that the Dubai authorities have made this proviso stick for any project that new investors seek to revive,” said Samir Munshi, managing director at Orion Holdings, which has in the recent past been acquiring “sick” realty ventures. (The company also funds the original developers by committing to acquire bulk units within a project and thus have the funds come in for project work to start.) “The earlier requirement was that the new investor had to make the payments for the value of the land and related costs, and did not cover any property purchases made prior to the project getting stalled.”"
'via Blog this'
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