{"id":67390,"date":"2009-12-07T01:51:00","date_gmt":"2009-12-07T06:51:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/billion-dollar-dubai-loans-made-using-barren-land-as-collateral-2009-12"},"modified":"2009-12-07T01:51:00","modified_gmt":"2009-12-07T06:51:00","slug":"creditors-gave-billions-to-dubai-with-just-barren-land-as-collateral","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/67390","title":{"rendered":"Creditors Gave Billions To Dubai, With Just Barren Land As Collateral"},"content":{"rendered":"<p><img decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4b1ca4a4000000000076797b&amp;maxX=400\" border=\"0\" alt=\"Dubai\" width=\"400\" \/><\/p>\n<p><div style=\"float: left; padding: 15px 15px 15px 0;\">\n<script type=\"text\/javascript\">\/\/ <![CDATA[\ntweetmeme_source = 'moneygame'; tweetmeme_service = 'bit.ly';\n\/\/ ]]><\/script><br \/>\n<script src=\"http:\/\/tweetmeme.com\/i\/scripts\/button.js\" type=\"text\/javascript\"><\/script>\n<\/div>\n<p>If Dubai World&#8217;s Nakheel property arm ends up defaulting on its debt, creditors may not much to take possession of.<\/p>\n<p>Turns out that creditors for one $3.5 billion bond may only have a giant piece of barren land, the size of Manhattan, as collateral to their giant loan.<\/p>\n<p style=\"padding-left: 30px;\"><a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=aPDWELoJ6t1c&amp;pos=6\">Bloomberg:<\/a> Investors will be able to seek foreclosure on the property&rsquo;s mortgages should the Dubai World unit fail to repay the loan, according to the bond&rsquo;s prospectus. The debt is due on Dec. 14, after which Nakheel has two weeks to remedy a default. The property forms part of the Dubai Waterfront project, where Nakheel plans to build a city twice the size of Hong Kong.<\/p>\n<p>Apparently it&#8217;s a very valuable piece of land&#8230; assuming you have the money to build two Hong Kongs on top of it.<\/p>\n<p style=\"padding-left: 30px;\">&ldquo;The project isn&rsquo;t likely to happen,&rdquo; said Saud Masud, a Dubai-based real estate analyst at UBS AG. &ldquo;I&rsquo;d be very surprised if anything is built in the next five years.&rdquo;<\/p>\n<p style=\"padding-left: 30px;\">The land was valued at $4.2 billion by Jones Lang LaSalle Inc. three years ago, based on the entire project being ready by 2018, when it would be worth $11.8 billion, the prospectus said.<\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/billion-dollar-dubai-loans-made-using-barren-land-as-collateral-2009-12#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/times-of-london-censored-again-in-dubai-after-ruling-sheikh-is-called-a-benign-dictator-2009-12\">Times Of London Censored Again In Dubai After Ruling Sheikh Is Called A &quot;Benign Dictator&quot;<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/dubais-ridiculously-luxurious-real-estate-market-2009-12\">Dubai&#8217;s Ridiculously Luxurious Real Estate Market<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/chart-of-the-day-dubais-average-property-prices-2009-12\">CHART OF THE DAY: Dubai Shows What A Property Plunge Really Looks Like<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/EUVp3rFDwe4\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If Dubai World&#8217;s Nakheel property arm ends up defaulting on its debt, creditors may not much to take possession of. Turns out that creditors for one $3.5 billion bond may only have a giant piece of barren land, the size of Manhattan, as collateral to their giant loan. Bloomberg: Investors will be able to seek [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-67390","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/67390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=67390"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/67390\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=67390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=67390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=67390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}