Damac to 're-instate' Palm Springs project

DUBAI -- Damac Properties yesterday announced that the Palm Springs project, located on Palm Jebel Ali, has been re-instated and will be delivered to customers.

The announcement by Damac , the largest private freehold developer with developments in Dubai Marina, Palm Islands, Dubai International Financial Centre, followed extensive discussions, the Dubai-based developer said in a statement. "The successful resolution has been the result of extensive discussions under the guidance of the Real Estate Regulatory Authority (RERA)," it said. Hussain Sajwani, Chairman of Damac Properties said they were very pleased with the outcome of discussions. "This announcement is testament to the strength of the real estate sector and will further enhance confidence for international investors in the Dubai real estate market.''

Damac 's dramatic decision to cancel its 25-storey beachfront development last month has drawn widespread protests from investors. The developer said the reason for cancellation of the project five years after launch was due to "redevelopment of the plots."

According to Damac , the development cannot be situated on the re-allocated plot.

Master-developer Nakheel , which is building the Palm Jebel Ali, said it was not informed of Damac's decision to cancel. Investors had said they stand to lose million of dirhams as Damac was offering compensation well below current market value.