Retailers on the Golden Mile development on the trunk of Palm Jumeirah can now expect to move in after an out-of-court agreement.
Nakheel will acquire all unsold units in the Golden Mile, including residential, office and retail space. Souq Residences, against which it started a legal proceeding in 2010, is relieved of liabilities.
Around 430,000 square feet of retail and office space is available at the 10-building complex, Nakheel said. There are a total of 860 residential units, but Nakheel declined to comment on how many are yet to be sold.
As of September, 27 retailers were waiting to move into the development. All of them signed contracts with Souq Residences a few years ago.
These include Waitrose, Beyond the Beach, Starbucks, the restaurant Wagamama, Mothercare, Pinkberry, Boots, Party Zone, Loft Fifth Avenue Salons and N Style.
After such a long wait, the retailers are reluctant to proclaim victory.
“The big question is whether they would honour the contracts,” said Steven Holbrook, the chief executive at retailers Al Boom Marine. He signed a contract with Souq Residences about four years ago.
Golden Mile and Souq Residence are both joint ventures between Kuwait’s IFA Hotels and Resorts and the Dubai World subsidiary Istithmar.
Jacob Hrayki, who is looking to bring a Loft Fifth Avenue salon to the Golden Mile, said he has received an email from IFA saying that Nakheel has full ownership of the Golden Mile development, including residential and retail components.
When asked to comment, IFA referred questions to Nakheel. A Nakheel spokeswoman said: “We will communicate directly with retailers in due course.”
“We have come to an agreement that is satisfactory and beneficial to all parties,” the Nakheel chairman Ali Rashid Lootah said.
The Golden Mile was launched in 2005. But the development became entangled in a legal row when Palm Jumeirah’s master developer Nakheel brought a US$27.21 million lawsuit against Souq Residences before Dubai World Tribunal.
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