Nakheel Credit set to Soar?

This week Nakheel have announced that they have had a good meeting with the banks and their debt restructuring is currently acceptable to 85% of the relevant parties. The target is 95% and they believe this will be reached by December.
In the background the most important thing locally is that Nakheel have been paying sub contractors over the past few months and agreeing terms on how they come back to the table and start construction again.
This is where I believe we could see a very positive lift to the market.
My theory goes like this.
If you have Nakheel Credit now you can transfer to another owner and receive about 50% of its value.
• Nakheel will restart work on 10 delayed projects shortly.
• Nakheel will then send payment request out to the investors of these 10 projects.
• A large portion of investors will default.
• A smaller portion will look to settle and buy credit.
I estimate that from 10 projects there will be at least 1,000 ( not scientific but a reasonable guess) buyers of credit. Today, my sources at Nakheel are telling me that there is little credit available for people to buy.
So in 2 months there could be 1,000 investors looking to purchase credit.
This will undoubtedly put the owner of credit in a better position than they have been in for the last 18 months and I can see credit being sold at around 70% of face value.
As the average credit note is around 1mAED that means the sellers of credit will be 200,000 dhs better off than today.
If there are 1,000 Nakheel customers floating around with 20% extra than today’s rate ( approx 40,000 pounds) I can tell you that there will be a mini party over here. ( I will be right in the middle of it too!)
Bearing in mind that it shows a massive commitment from Nakheel I hope that this is the first signs of recovery and that all you owners of credit are rewarded for youe patience.

Palm gets Waitrose

Quick Blog to keep you updated!

It has now been officially reported that Waitrose will be opening in the Golden Mile next Spring.
This is great news in itself but in conjunction with this the G Mile will also attract a raft of other retailers.
The landscaping underneath the monorail has started and to unofficially quote a Nakheel source 'there will be people sitting out on the terraces by spring'.
There is a new restaurant in Oceana which i beleive is pricey but worth it and all in all that denotes a great fortnight for the Palm.

Yes there is lots still to do, but the word is that about 15 JBR retail tenants are looking to open on the Palm next year. Food, clothes and coffee is what the place needs to create some atmosphere and I for one am pleased.

So all you Shoreline owners in buildings 11-20 can be very happy that this will breathe fresh life into the sales and rentals prices as people look to locate close to the shops.