Lebanon Island - a part of the man-made archipelago - The World, Dubai, has sold for a good $9.5 million to a consortium of investors. It was purchased in 2008 for around $16.3 million by Wakeel Admed Azmi, an Indian entrepreneur. However, he sold it at a loss of $6.8 million.
'The World' is a manmade cluster of islands off the coast of Dubai constructed in the shape of the world map. It comprises of 300 private islets, which are divided into four categories - Dream Resorts, Community Islands, Estate homes and private homes. The property was developed by Nakheel Properties, a major real estate firm in Dubai.
The island was sold in November 2012 as Azmi could not maintain the property. Authorities at the Royal Island Beach Resort, a major resort on Lebanon Island, confirmed that operations had been taken over by a new management since November 2012, reports Arabian Business.
Lebanon Island is the only operating commercial islet among the 300 other properties. It is located around four kilometers off the mainland and takes around 30 minutes to reach via water taxi.
Construction activity on the islands was stalled due to the global recession. The Lebanon Island project also faced some legal constraints in 2011.
Penguin Marine Boat Services, the company that was under contract with Nakheel Properties to ferry people to and fro the island, withdrew the contract due to lack of activity on the island. Penguin also claimed that the islands were sinking in the sea.
However, Nakheel Properties won the legal battle and Penguin was ordered to pay around $2.7 million in fine for the breach of contract, reports website Hotel Middle East.
More recently, Cape Reed Group of Companies, a South African building firm, announced that it had completed construction of commercial space in Royal Island Beach Club. The project is aimed at high-income customers and hopes to provide luxury amenities to its clients. All development work on Lebanon Island has now been completed, reports Arabian Gazette.
