Nakheel PJSC creditors may win the right to seize a strip of barren waterfront land the size of Manhattan if the company defaults on the $3.5 billion bond backing the development.
Investors will be able to seek foreclosure on the property’s mortgages should the Dubai World unit fail to repay the loan, according to the bond’s prospectus. The debt is due on Dec. 14, after which Nakheel has two weeks to remedy a default. The property forms part of the Dubai Waterfront project, where Nakheel plans to build a city twice the size of Hong Kong.
Is it just me or having your own Manhattan in Dubai sounds more interesting than getting paid the debt Dubai World owes you? Provided of course, it becomes as lively as the real Manhattan and it also gives birth to a formidable competitor of the one in the Big Apple. Both, of course, are the two that make the idea very attractive.
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