Sorouh Vows Delivery Of Shams Properties On Time

Sorouh Real Estate's landmark Sun and Sky towers are set to be delivered on time in the first quarter of 2010, Sorouh Managing Director Abubakr Al Khouri said on Monday. The towers are two of the four projects making up the Shams Development on Reem Island, the company's Dh25-billion flagship luxury housing community expected to serve 53,000 people when completed. Al Khouri confirmed the company has reduced its prices in the Gate Towers, part of the Shams development, and Alghadeer between Abu Dhabi and Dubai by up to 35 per cent. In order to help its developers finish construction and its buyers go through with their purchases, Sorouh renegotiated the contracts with its sub-developers who faced financing difficulties. Alghadeer and the Gate are scheduled for completion in 2012. "It's quite logical for a developer or company to revisit its business plan in a time when prices have dropped substantially, especially if we manage to renegotiate these prices," Al Khouri said.

In addition to the discounts, homebuyers at Alghadeer can put off making their payments until their units are delivered, while Gate Towers buyers have had their payment plans adjusted, Al Khouri said. In July, Sorouh reported second quarter profits declined by more than 75 per cent to Dh151 million compared with the same period last year. First half profits were down 71 per cent to Dh281 million. Of the major UAE developers, Sorouh has been the most visible in stepping in to help its developers and customers live up to their commitments. Al Khouri said the company is helping to facilitate financing and licensing for its developers and finding new investors for the ones unable to continue. "Sorouh has been in the forefront of lowering prices," Al Mal Capital Analyst Bobby Sarkar said. "They're coming to terms with what the world market will bear." Sarkar estimates land prices in Abu Dhabi have fallen from about Dh600 per square foot last September to about Dh200 today.