Heart of Europe on Dubai's The World to restart
Kleindeinst's $169m payment to Nakheel paves way for six-island scheme
Construction work could soon restart on the Heart of Europe islands at Nakheel's The World development following the settlement of a long-running dispute with the island's developer, Kleindienst Properties.
Master developer Nakheel has said Kleindeinst, which is the sub-developer responsible for delivering properties on a group of six islands in the Europe section of the world, has agreed to pay it $169.3m (AED: 622m) of the money it owes to its subsidiary, The World LLC.
Nakheel added that the deal allows Kleindienst Properties to continue with its planned development on the islands.
A spokesman said: “This mutually-beneficial agreement with Kleindienst Properties is another major milestone for The World, further proving that the project is alive and ready for development.
"In addition, we are witnessing renewed interest in this project, with a growing number of designs and proposals being submitted for review.”
Kleindienst Group CEO Josef Kleindienst, meanwhile, said: “We are delighted to be finally able to continue work on this iconic project and are excited about the prospect of delivering our unique vision for The Heart of Europe development to investors.”
He added: “We are starting with the Germany island and will complete the show case villa this year, while construction of 20 other state-of-the-art villas gets underway. We are also in the process of renewing approvals for all six islands and look forward to sharing more updates on this dynamic project over the coming months.”
The firm is planning to develop six islands as part of its Heart of Europe project, including Germany, Austria, Switzerland, Netherlands, Sweden and St Petersburg.
The settlement follows a case last month where another investor in THe World project, Sao Paolo Development Ltd, had sought to back out of a deal to buy the Sao Paolo island on The World. However, the tribunal ruled that it should pay
The World LLC the $34.7m (AED: 127.6m) it owed on outstanding instalments and accrued delay fees.
The World is a group of 300 artificial islands which Nakheel sold to developers during 2007-08. Development on only one island (Lebanon) has been completed to date, and several developers have expressed frustration about a lack of work on facilities such as logistics and transportation hubs required to develop the islands.