No problem for CDL

No problem for CDL

Developer says Emirate's woes won't affect project
by Jonathan Peeris
05:55 AM Dec 02, 2009
SINGAPORE - Local developer City Developments Limited (CDL) said that it does not expect Dubai World's debt troubles to have any impact on the company or its South Beach development project.

The firm issues a statement yesterday through a filing with the Singapore Exchange (SGX) in response to media enquiries.

CDL also confirmed its earlier statement that it had already secured fresh funds through a combination of an $800 million bank loan for a two-year term and $400 million in secured convertible notes.

Dubai World, through its subsidiary, currently holds a one-third share in the project.

CDL said should the joint venture company require additional funds, the shareholders may be called upon to put in their proportionate share of funding.

It added that at the moment, it is premature to anticipate the intentions or actions of the joint venture partners in relation to the South Beach development project.

As South Beach is an iconic development and one which has excellent potential, CDL has also not ruled out increasing its stake should the opportunity arise.