Dubai Properties, the real estate arm of conglomerate Dubai Holding, said it will counter-sue UK firm Hopkins Architects, which is claiming damages from the termination of a contract.

Hopkins is suing Dubai Properties for costs and losses it claims were incurred when Dubai Properties cancelled its contract for the Central Park 08 project in Dubai International Financial Centre (DIFC).

It is seeking Dh27 million ($7.35 million) in the case, The National newspaper reported on Saturday.

Dubai Properties spokesman said on Tuesday the company had terminated the contract but had paid in full for the work done and were disputing the additional amounts the architects were claiming.

"We intend to counter-claim in relation to the services provided by Hopkins," a Dubai Properties spokesman told Reuters.

Hopkins in Dubai declined to comment.

Disputes between contractors and property firms rose dramatically, after Dubai's real estate market crashed on the back of the global financial crisis, resulting in project cancellations and delays.

In February 2009, Hopkins halted work on Central Park 08, alleging Dubai Properties had stopped paying it, which lead to the termination of the contract, according to documents filed at DIFC Courts, the judiciary for the emirate's financial district.

Hopkins is arguing in its suit that it was not been paid its "proper entitlements" as per the contract that was wrongfully cancelled by the defendant. – Reuters