Text size:

  • Small
  • Normal
  • Large
A panoramic view of Sky Gardens in Dubai which is at the centre of a legal dispute. Paulo Vecina/The National
A panoramic view of Sky Gardens in Dubai which is at the centre of a legal dispute. Paulo Vecina/The National

Sky Gardens property lawsuit in Dubai starts trial at DIFC Courts

The lawsuit over the sale of Sky Gardens, one of the most notorious disputes arising from Dubai’s property crash in 2008, finally comes to trial today.

The lawsuit over the sale of Sky Gardens, one of the most notorious disputes arising from Dubai’s property crash in 2008, finally comes to trial today.

The education provider Taaleem, which brought the case against one of its shareholders, the Dubai-based investment firm National Bonds Corporation (NBC), and Deyaar Development, will be heard at the DIFC Courts.

The case concerns a series of transactions between 2008 and 2009 involving the luxury residential complex in the DIFC.

The Courts have scheduled nine days for the trial, the longest period assigned since they began operating in 2006.

The lawsuit, filed with the DIFC Courts in June 2010, stems from the Dh1.64 billion acquisition of Sky Gardens in mid-2008 by a special purpose vehicle of Amlak, the Islamic home finance company, from First Dubai Real Estate, the developer.

A tripartite deal between Taaleem, NBC and Amlak resulted in Taaleem acquiring a 33 per cent stake in the development, which would later be resold for profit, according to the education provider’s claim. NBC financed the acquisition.

In its claim, Taaleem said Deyaar signed an agreement later that year to acquire its stake at a premium, thereby assuming Taaleem’s debt to NBC. Taaleem also alleged that Deyaar subsequently tried to rescind and terminate its acquisition, as property valuations in Dubai had begun to decline rapidly.

Taaleem is represented by Hogan Lovells, while NBC and Deyaar are represented respectively by Brown Rudnick, and Afridi & Angell.

The trial, which Sir David Steel will preside over, is expected to run until November 7.

A judgement could be handed down by the end of the year.

jeverington@thenational.ae

Back to the top

More articles


Editor's Picks

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 A Brabus Mercedes 6x6 Sports Utility Vehicle is readied for display during Auto China 2014 in Beijing, on April 20. Adrian Bradshaw / EPA

In pictures: Auto China 2014 exhibition

Leading automakers have gathered in Beijing for the kickoff of China’s biggest car show, but lacklustre growth and environmental restrictions in the world’s largest car market have thrown uncertainty into the mix. More than 1,100 vehicles are being showcased.

 The New York Stock Exchange. Rising interest rates will shift momentum away from bonds and back towards risk assets such as stocks. Richard Drew / AP Photo

Plan ahead for rising interest rates

It is now over five years since the majory central banks slashed interest rates to record low but that is all about to change. So, how will rising interest rates affect you?

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National