Developers like Nakheel will pay 60-70% of outstanding debts, says Davis Langdon
Davis Langdon and Aecom, which merged last week, have said it will take “several years” to get by clients in Dubai. The two firms said payments from various developers including state-linked Nakheel and the Dubai Road and Transport Authority (RTA) would “certainly” not be paid “in the next 12 months” in an interview with Arabianbusiness.com.
Kevin Sims, Davis Langdon’s head of Middle East, declined to reveal how much his firm is owed but said: “We’re now slowly agreeing recovery. But they’re typically on payment plans of a number of years and (clients) are seeking discounts in order to get an agreement. We expect to receive between 60 and 70 percent of the debt. It is trickling in. The other day we had half a million dirhams from a client.”
Of an estimated £22.5m order book, Dubai comprises about $3.2m of Davis Langdon’s UAE business, Sims said, down from 80 per cent of business in early 2008.
David Barwell, Aecom’s Middle East chief executive, said regarding money owed by the RTA: “There’s still money outstanding, we do get paid but it comes in dribs and drabs. We’re now starting to see a bit more consistent pay.”
Aecom, a£3.8bn American multidisciplinary consultant, bought £208m-turnover UK QS Davis Langdon for £204m last week.