Nakheel terminates $1bn deal with contractor

Nakheel has terminated a $1.1bn contract on the Palm Jumeirah village centre with South Korean builder Samsung C&T. The state-linked Dubai developer appointed the contractor on 30 September 2008 and the contract was due to finish in October 2013. Samsung C&T said in a regulatory filing that the contract was terminated on 2 April at the client’s request “in accordance with the conditions of the contract” and “not by failures of Samsung C&T’s contractual obligations”.

The Palm Jumeirah Village Center is a mixed use development comprising 120,000m² of retail space and 150,000m² of residential. It includes a four-storey retail centre with two 42-storey residential towers.