Monday, 29 March 2010 at 11:59, Reuters, Dubai
More than 30 investors have filed a breach of contract case against Dubai developer Union Properties for the non-delivery of homes on one of its projects, a local daily reported on Monday.
The developer's Index Tower project which is under construction in the Dubai International Financial Centre, should have been completed two years ago, the suit claims, according to a local business newspaper.
"The respondents' continuing failure to deliver the units and the failure of the respondent to issue SPA (sale and purchase agreement) in a timely manner is a breach of its contractual obligations," according to documents seen by the paper.
Union Properties' chairman Khalid bin Kalban told Reuters he was unaware of the legal case. "There are complaints of course but management is dealing directly with them," he said. Earlier in March, the firm said it received "negotiable" offers for its Ritz Carlton hotel in Dubai, which the debt-laden firm is hoping to sell for about Dh1.5bn ($408.5m).
The developer has Dh6.5bn of outstanding debt, of which 2.8bn had been rescheduled for payment to 2011 from 2009, with the remainder maturing in the long term.
The firm's shares were off 1.9 per cent at Dh0.5 a share at 0716 GMT, underperforming Dubai's index which slipped 0.3 per cent.
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