Damac move surprises Nakheel

Uncertainty surrounds Damac's deletion of its Palm Springs project as master-developer Nakheel, which is building the Palm Jebel Ali where the project was initially planned, saying it was not informed of Damac's decision to cancel.

Marwan Al Qamzi, managing director of the Palm Jebel Ali, said Damac's resolution was a surprise and Nakheel was informed of it through the media.

"We are very surprised by the announcement made by Damac suggesting that the reasons for the deletion of its Palm Springs Dubai property project are because of revisions in the Palm Jebel Ali master plan," said Al Qamzi. "The Palm Springs project was moved to a prime position due to widening of the crescent," he said.

"Our last negotiations with Damac was in February this year and was one of positive ones. We were left with the firm view that Damac was proceeding with the project. We are extremely disappointed by this recent event in Dubai property," said Al Qamzi.

Al Qamzi said that the revised master plan allowed for significant improvements in the design.

Nakheel has sold other plots of land on the crescent of Palm Jebel Ali to Damac. Al Qamzi said it was now the responsibility of Damac to insure Dubai property the delivery of any units it has sold within these plots to customers.

Revisions to the Palm Jebel Ali master plan were reported to investors more than ten months ago.

"From Nakheel's perspective, Damac's cancellation of the Palm Springs Dubai property project must be related to other development issues particularly related to the project," said Al Qamzi.

Damac was unavailable for comment.