Dubai Property Investors Face Dhs172m Loss On Hydra Projects

Hydra Properties is still Dhs172 million short on its outstanding payments owed to homeowners who won legal cases against the developer for delayed and cancelled real estate projects in Abu Dhabi.

Abu Dhabi’s Court of First Instance ordered the developer to sell land to help cover the payouts, including two plots in the Burj Khalifa area and one in Al Barsha, in three separate auctions, starting December last year.

“Three plots of land have now been sold,” confirmed Fareya Azfar, head of arbitration at The Legal Group.

“Dubai Court will transfer Dhs203 Million to Abu Dhabi Court and then proportionately it will be given to the claimants. But Hydra Properties owes Dhs375.3 million in total, which means it is short by Dhs172 million,” the lawyer told Gulf Business.

Hydra Properties found itself struggling with debt in 2008 as the bottom lurched out of the property market. Following Dubai’s debt crisis, house prices in the city fell more than 60 per cent from their peak and access to credit dried up.

“New investigations are being carried out to search more plots that belong to Hydra Properties so that for the remaining claim amount those plots can be auctioned,” said Abdultaiyab Bahrainwala, associate, The Legal Group.

More than 100 buyers filed cases for refunds from Hydra in 2011 for property in stalled projects, including Hydra Village, Hydra Golf Walk and Hydra Avenue.

Dubai-based The Legal Group has won eleven cases against the developer to date and is overseeing three more on-going court cases, said Azfar.

Successful cases have included owners of property in Hydra Avenue, Hydra Executive and Marina Spirits.

Hydra Properties was not immediately available for comment when contacted by Gulf Business.

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