Problems in the US real estate market are causing projects as far abroad as India to be halted

One Las Vegas

BSR Engineering and Development Ltd, a major player in the world-wide luxury development market, is suspending all real estate activity in India until further notice. The company notified the TASE (Tel Aviv Stock exchange where they are listed) that it had canceled its participation in a $20 million luxury residential project in Bangalore, which was slated as a residence for foreign workers in Bangalore’s IT sector.

BSR cited the situation of the global real estate market in general and in India and the United States in particular as its reasons for suspending activity in India. BSR Engineering is facing problems with several of its developments. At a bondholders’ meeting of subsidiary BSR Projects Ltd, the company said that projects in the US were in a very difficult situation, a mezzanine loan was in big trouble, and a major project was heading for receivership.  What I hear is that BSR is desperately looking for more financing for their project in Las Vegas - “One Las Vegas,” a 19.5 acre master-planned residential “lifestyle,” condominium development, and is likely to be issuing a going concern warning soon.

South Korea’s Sungwon Corporation plans to launch a Dh1 billion luxury residential project in The Lagoons, a Sama Dubai master development, by year-end, which will take its realty investment portfolio to $1.5 billion, a senior executive said.

"We have acquired a plot in The Lagoons and expect to launch the project by year-end," Richard Lee, Vice-President, Sungwon Corporation Middle East, told Emirates Business.

"We hope to resolve the design issue with Sama by next month, since the master developer provides developers with project specifications," he said.

The company yesterday broke ground on its Dh1.5bn Santeview project at Culture Village. The project is a mixed-use complex that will consist a ground plus 32-storey office tower and a ground plus 40-storey residential tower. They will incorporate high-tech security features, smart home and modern office features.

Chang Pyo Park, Chief Executive Officer, Sungwon’s Middle East Headquarters and General Manager of the Dubai Branch, said Santeview will set a benchmark in regional property landscape with finest architectural and engineering expertise drawn from their experience in the construction industry.

Sungwon is also in talks with investors to construct and develop a more than 100-storey tower in Dubai. "We are holding talks with investors," Lee said.

The company will open a branch office in Abu Dhabi next month and will then start concentrating on its development and construction business in the capital, Lee said. However, he did not comment on the total investment or number of projects planned in Abu Dhabi.

As a contractor, Sungwon has bagged construction contracts for Silver Star and The Cube projects in Business Bay and Dubai Sports City, respectively.

"Currently, we don’t have plans to enter Bahrain or Qatar as developers, but we are undertaking construction activities for government facilities and high-rise towers there," he said. The company has built more than 130,000 apartments and 1,000 high-rise towers.

Sungwon