Deyaar Development, Dubai's leading real estate developer, has no plans of cancelling the proposed Dhs500 million Shariah-compliant fund.
There was much speculation in property circles that the real estate services company had cancelled the fund. “We haven’t cancelled the plans for our distressed fund. It is put on hold. We may consider relaunching it when the time is right,” a company spokesperson told local media.
The closed-ended five year fund was proposed to buy properties from investors who had defaulted. The fund might be set up in association with Dubai Islamic Bank and Rasmala Investments.
Deyaar started the handover of 595 apartments in its three residential projects in Business Bay from April this year. The firm is contemplating to offer financing options to its customers to help reduce the default rate.
The Dubai based developer will start delivering two more projects later this year.