Developer reports £43m loss for second quarter of 2010 admidst concerns over scheme within The Lagoons
Major Dubai developer Deyaar may abandon its Flamingo Creek project, which it bought for 327m dirhams (£60m). The news came in the firm’s results announcement this week, which showed it made a loss of 243m dirhams (£43m) for the second quarter of 2010 compared to a profit of 76.4m dirhams for the same period last year.
In a filing with the Dubai stock exchange Deyaar said its gross revenues for the three months ending June 30 2010 were 79.7m dirhams.
It said it would consider abandoning Flamingo Creek over concerns its master developer, understood to be Sama Dubai, would be unable to complete the project’s infrastructure.
It said, without naming Sama: “Management now believes that the master developer may not complete the related infrastructure and therefore, the project may have to be abandoned.” Deyaar added that it commence arbitration proceedings against the master developer.
However, Sama has since told local newspaper The National that it will complete the works.
Flamingo Creek is part of the wider 80bn dirhams The Lagoons scheme.