TROUBLED LOMBOK DEVELOPMENT Dubai Based Emaar Properties Out
Back of the petro dollar boom of a few years ago the much publicized venture between the Indonesian Government and Dubai's Emmar Properties has turned the venture into a casuality back of the Middle East financial purge. The once ambitious project covering 1,200 hectares on Bali's neighbor Lombok island was planned as a US$600 millon investment including four hotels with Ritz Carlton and Armani as leading brands, a marina, along with upscale residences.
As a destination resort the key selling point was over 7 kimometers of oceanfront property. Recently the Indonesian Government though its Investment Coordinating Board announced it was seeking a new parter for the project as Emaar had been unable to meet its funding and development commitments to the project. The Government is now sourcing new parties to move the project ahead.
While Emaar has considerable shareholding that includes the Dubai Government, it suffered hard hits by the bankrupcy of a US subsidary residential development company and a high profile issue on alleged insider trading which plunged share prices.