Nakheel And Souq Residences Reach Agreement On Palm Jumeirah’s Golden Mile

Dubai developer Nakheel and Souq Residences, which is a joint venture between IFA Hotels & Resorts and Istithmar World, have reached an agreement on the Golden Mile mixed-use development on Palm Jumeirah.

The agreement ends a four-year legal row between Nakheel and Souq Residences, which began with a lawsuit filed by Nakheel against the latter at the Dubai World Tribunal in 2010.

The Dubai-based developer sued IFA Hotels & Resorts demanding a refund of Dhs100 million paid to the company, after it claimed the cancellation of the contract for Golden Mile, which comprises residential, office and retail space on the trunk of the island.

Meanwhile, IFA disputed that the agreement was cancelled and countersued Nakheel in the Dubai World Tribunal, beginning a long-drawn out legal tussle.

Although IFA Hotels and Resorts reportedly began signing leases to retail outlets in 2011, all legal proceedings had to be completed before the retailers could move in.

Now the legal limbo has finally come to an end with a deal struck between Nakheel and IFA.

As per the current agreement, Nakheel will assume full ownership of the remaining unsold units in the Golden Mile, while Souq Residences is relieved of substantial liabilities.

The deal also paves the way for more local facilities – including a supermarket, shops and cafes – at Golden Mile, benefiting residents of the 10-building complex and those living in other parts of Palm Jumeirah.

More than 430,000 sq ft of retail and office space, plus a number of residential units are available at the development.

“We have come to an agreement that is satisfactory and beneficial to all parties,” said Ali Rashid Lootah, chairman of Nakheel.

“We look forward to realising the full potential of the Golden Mile, a key component of Palm Jumeirah, in line with our overall vision for the island.”

With 860 residential units, the Golden Mile comprises 10 identical, interconnected 11-storey buildings located on the western trunk of the island.

Speaking on behalf of Souq Residences, chairman for IFA Hotels & Resorts, Talal Al-Bahar said: “This marks a new chapter in our business relationship with Nakheel. As the largest foreign investor on Palm Jumeirah, we share Nakheel’s vision for the island. We also look forward to building further upon our long-standing relationship with Nakheel in its future master planned developments.”

IFA is also developing a residential resort, worth more than Dhs1 billion, on Dubai’s Palm Jumeirah Island. The project, which is named ‘The 8’, will replicate the style of Miami Beach and add over 300 units to Palm Jumeirah’s property inventory.