#APPROVED: PALM SPRINGS, 19F Res (Palm Jebel Ali) [Archive]

Salty

March 15th, 2008, 10:20 AM

let me get my head round this,damac have pulled the plug on this development-i assume that like all other properties in dubai that buying and selling of units has been going on and that people will have been paying good premiums to invest in this property,if that is the case this would set a dangerous precedent if they-damac are allowed to do this its outrageous!!!!!!!!!!!!!!

I absolutely agree Tiny. People bought into this in 2004 and were told it would be completed in 2007. They have tied up considerable amounts of money all that time, and others who then bought on the resale market will have spent even more. Life savings will be involved.

We all have very severe doubts about Damac's capability of completing any of its projects. Even if they do eventually start building and delivering finished properties, goodness knows when this will happen.

I also think that Damac will have looked at the phenomenal success of the Palm Jumeirah, realised just how valuable the real estate on Palm Jebel-Ali is likely to be soon, and decided to build something much bigger (i.e. much more lucrative) on its plot with starting prices no doubt in the 3,500 - 4,000 AED range.

This leaves it with a problem. "What are we going to do about the fact that investors in Palm Springs actually own that space now? Hmnnn. I know, let's just get rid of them for a song."

I should think Damac probably would want to rid itself of Palm Springs buyers completely because there are likely to be many people who bought 4 years ago for AED 800 a square foot who will not have deep enough pockets for whatever Damac may now want to propose for the Palm Jebel Ali.

Whatever the truth, it seems that the Damac ticking time bomb has gone off. The potential loss of confidence in the Emirates property market that could arise from this scandalous behaviour is huge. I have recently been thinking very seriously about buying an apartment in one of the proposed new developments on RAK's Al Marjan Island. I don't want to end up like these poor Palm Springs investors though. Upshoot, I'm not going to invest in Al Marjan at least until the build is well underway. But by then the potential profit margins may not be so attractive and I will probably not buy at all. These are uncertain times economically, and I'm getting to the point that I have very little confidence in real estate development companies in Dubai outside of those owned by the government itself.

Nakheel may deliver late, but at least, in the end, you pretty much get what you're supposed to get (apart from the missing canal on PJ).

My heartfelt sympathies to all of you Palm Springs investors. These must be very worrying times for you. Fight this company Damac. Fight them and win. Cause a HUGE stink. Go to the press. Go to the Master Developer. Do whatever you have to do. The outcome of your fight may help determine whether or not decent, hard working, honest people will want to become involved in the Dubai property market at all in future. Dubai may be left entirely to the gangsters. What a tragedy that would be for a place that we all love.

:cry:

Richard Head

March 15th, 2008, 12:20 PM

:ohno:I absolutely agree Tiny. People bought into this in 2004 and were told it would be completed in 2007. They have tied up considerable amounts of money all that time, and others who then bought on the resale market will have spent even more. Life savings will be involved.

We all have very severe doubts about Damac's capability of completing any of its projects. Even if they do eventually start building and delivering finished properties, goodness knows when this will happen.

I also think that Damac will have looked at the phenomenal success of the Palm Jumeirah, realised just how valuable the real estate on Palm Jebel-Ali is likely to be soon, and decided to build something much bigger (i.e. much more lucrative) on its plot with starting prices no doubt in the 3,500 - 4,000 AED range.

This leaves it with a problem. "What are we going to do about the fact that investors in Palm Springs actually own that space now? Hmnnn. I know, let's just get rid of them for a song."

I should think Damac probably would want to rid itself of Palm Springs buyers completely because there are likely to be many people who bought 4 years ago for AED 800 a square foot who will not have deep enough pockets for whatever Damac may now want to propose for the Palm Jebel Ali.

Whatever the truth, it seems that the Damac ticking time bomb has gone off. The potential loss of confidence in the Emirates property market that could arise from this scandalous behaviour is huge. I have recently been thinking very seriously about buying an apartment in one of the proposed new developments on RAK's Al Marjan Island. I don't want to end up like these poor Palm Springs investors though. Upshoot, I'm not going to invest in Al Marjan at least until the build is well underway. But by then the potential profit margins may not be so attractive and I will probably not buy at all. These are uncertain times economically, and I'm getting to the point that I have very little confidence in real estate development companies in Dubai outside of those owned by the government itself.

Nakheel may deliver late, but at least, in the end, you pretty much get what you're supposed to get (apart from the missing canal on PJ).

My heartfelt sympathies to all of you Palm Springs investors. These must be very worrying times for you. Fight this company Damac. Fight them and win. Cause a HUGE stink. Go to the press. Go to the Master Developer. Do whatever you have to do. The outcome of your fight may help determine whether or not decent, hard working, honest people will want to become involved in the Dubai property market at all in future. Dubai may be left entirely to the gangsters. What a tragedy that would be for a place that we all love.

:cry:

Salty,

Agree 100%, if Damac are allowed to get away with this it will damage the reputation of Dubai significantly. I really can't see Nakheel and / or the government allowing this to happen, the buyers need to organise themselves and petition anyone and everyone to have this decision turned around, or at least have buyers awarded realistic compensation based on current market values of their imaginary apartments.

Hopefully the one good thing that will come out of this is that many investors will realise that Damac is a marketing machine gone beserk, with little substance behind it in terms of ability to actually make projects happen. Hard to believe that they can actually think they will get away with this and still persuade investors to hand over their hard-earned for anything they announce in the future. Oh but hang on, if I buy an apartment I can win a continent, so that's all good :ohno::ohno::ohno:

Richard Head

March 15th, 2008, 12:27 PM

Better Homes website has 6 apartment sin this development for resale at around 2000 / sq ft. Some show a completion date of Dec 2008 !! And this is one of the supposedly more reputable agents in towm. That said, they're also still flogging "canal-facing" shorelines, so clearly knowledge of the market is not a requisite skill for anyone selling real estate in this city. Whereas being totally bent and corrupt obviously is...................

AWE!

March 15th, 2008, 01:00 PM

As you can see I do not post often but feel I must when I see this kind of corruption going on.
I have a 2 bed on this development along with other apartments on JBR.
I say this to all investors (not just palm springs) that full legal action must commence for if Damac are allowed to "get away with this" how many others could follow suit knowing that they could get 2 to 3 times the plot value that they have already sold.
All they need are other corrupt developers (anyone remember the lighthouse) where they could effectively "swap" plots on the pretence of the "force majeure"
I urge all palm springs investors to reject out of hand this derisory offer especially those who have paid a premium for that amount would now be lost.I myself am supporting KARLOSB but am also talking to my solicitor who brokered this deal an will post the out come to anyone who pm's me.
IF SOME OF YOU KNOW ANYONE IN THE MEDIA PLEASE LET THEM KNOW, WE NEED AS MUCH PUBLICITY AS WE CAN GET!!!!!!!!

FISHY

March 15th, 2008, 01:10 PM

I just wonder what to do next,we need to organize ourselves as one voice to have a greater impact on Damac's unfair treatment, legal help? ,maybe we can meet ?write to Damac first?
These threads are great but we need to act fairly quickly.

Any suggestions?

boston101

March 15th, 2008, 01:56 PM

I agree, we should not allow DAMAC to get away with this. I have a 1BR there which I bought in a resale with a premium. I think we should talk to DAMAC through an attorney or lodge a complaint with RERA (Real Estate Regulatory Agency). My real-estate agent will be talking to DAMAC tomorrow and I can share any update.

turbo

March 15th, 2008, 02:27 PM

It might be worth writing to the Sheikh to highlight our plight. Below is a suggested draft to help you. The Sheikh can be contacted here:

http://www.sheikhmohammed.co.ae/vgn-ext-templating/v/index.jsp?vgnextoid=4f455c1090cc4110VgnVCM1000007064a8c0RCRD
------------------------------------------------------
Your Highness,

I invested in an development called Palm Spring in Jebel Ali back in 2003. This development was marketed and being developed by Damac. I have today learnt that Damac has cancelled the project and will not be offering compensation based on the current market value of my unit. I believe that Damac are acting extremely unethically and agiainst Dubai law, and are basically defrausing global investors who invested their money in good faith. I would request that your Highness instruct the appropriate government department to investigate the matter on our behalf and take necessary steps to restore our faith in the high standard Dubai has set in construction, quality, investor security and confidence. I'm sure you would not wish comapnies (especially big players like Damac) tarnishing the reputation of Dubai as the premier place in the world for investors to put their money in. Your early intervention will ensure that the matter does not get out of hand, and investors don't set up websites highlighting their plight. Looking for an urgent response, kind regards.

turbo

March 15th, 2008, 02:28 PM

'defrausing'

oops, that should be 'defrauding'

Suggestion / improvements welcomed

AWE!

March 15th, 2008, 03:05 PM

Hi All

Just a note to let you know that KARLOSB cannot log on to his messages at the moment.
If you require to contact him please pm me and i shall pass on the message to him.

Thanks

Tony

dubayyy

March 15th, 2008, 03:28 PM

Salty - nicely put argument. I agree with you. This will affect the market in Dubai as a whole if Damac are allowed to get away with this.

But then again most of us knew that Damac is little more than marketing organisation. Rumours have been abound in Dubai for awhile that the Damac House of Cards is about to fall.

But this would be too big a shock for the market - and I reckon a Dubai Government deal will be done behind closed doors - to save them or at least take over their assets and developments - Fed Reserve Sub-Prime bail out style.

You read it here first.

Does anybody have a full text of the Damac letter?

PS - also been thinking about buying on Marjan in RAK - but have now decided to hold off for the same reasons Salty mentions.

turbo

March 15th, 2008, 03:59 PM

Not sure if this has gone out, or is still a draft, but here is what I have seen from my contact:

10 March, 2008

Dear Sir/Madam,

Re: Palm Jebel Ali – Palm Springs – Unit

We write to advise you regarding your investment in the above project.

As you are aware from previous correspondence, the plot upon which the Palm Springs project was to be built (“the Plot”) was due to be handed over some time ago. You will also be aware of ongoing delay to the handover of the Plot by the Master Developer.

We have now been advised officially by the Master Developer that the Palm Jebel Ali Master Development has been re-designed and that the Plot will not be delivered. As a result of this official confirmation, we now regret to advise you that the Palm Springs project has been cancelled.

We understand that this is a serious and unfortunate situation but we trust that you will understand that it is one which is completely outside of our control. Attached please find a diagram which shows the plots purchased by Damac in the original masterplan and the re-allocated plots on the new masterplan. It is clear from this document that the re-allocated plots are significantly different in location.

In addition, the building forming the Palm Springs development (of which your Unit forms part) cannot be situated on the re-allocated plot which is nearest in distance to the Plot.

Your attention is drawn to the Force Majeure clause of the Sale and Purchase Agreement which specifically deals with this event. While under no contractual liability to do so, and in recognition of the disappointment which this notice will undoubtedly cause, we are willing to make the following offer to you:

Either:
1. Transfer to Unit(s) of your choice on another Damac development of your choice at a discounted price 15% below current market.
OR:
2. Repayment of monies paid by you with 6% interest calculated from the date of each installment payment.

While we understand the disappointment which will be caused by this notice, we trust that you will recognize that this matter is completely outside our control and that the above offer is made in good faith.

We would appreciate it if you could respond by 30 March 2008. Please confirm which option you would like to avail yourself by completing the attached form.
In the interim period should you require further assistance please do not hesitate to contact the Palm Springs customer service team on crm@damacgroup.com or Tel +9714-332 20255 and Fax +9714-332 0311, who will be happy to assist you.

Yours sincerely,

Damac Palm Springs Company Limited
Fareed Dowlatshahi
Senior Manager – Client Relations

houshang

March 15th, 2008, 04:08 PM

As an investor in Palm Springs I am overwhelmed with support we are receiving from evryone who has an interest in Dubai projects. It is crystal clear that cancelation has nothing to do with redesign of PJA.Nakheel is delivering the plot to Damac anyway and if redesign is affecting the position of plot that is something between Damac and Nakheel to sort out. Damac could only cancel the project if Nakheel refrained from delivering the plot altogether which is not the case. Besides in clause 13 of the sales contract the purchasers have given their consents to any changes,variations,modifications, and
substitutions to plans of Palm Springs as well as PJA Master plan either by Damac or Nakheel.So changes to the PJA Master plan have been provided for in the contract.
This leaves us with one thing; CANCELATION DUE TO HIGH COST OF CONSTRUCTION!
I heard this from Damac themselves!

Richard Head

March 15th, 2008, 04:41 PM

Hi All

Just a note to let you know that KARLOSB cannot log on to his messages at the moment.
If you require to contact him please pm me and i shall pass on the message to him.

Thanks

Tony

Tony, where in Worcestershire are you. Cheers from Sunny Dubai (via Kidderminster !!!:cheers::cheers: )

houshang

March 15th, 2008, 04:51 PM

May I ask Dubai-Lover to change the title of this thread from Never Built back to what it was before as we the other part of the contract as well the court of Law have not concluded that Palm Springs will never be built. That title does not seem to be that much of support to investors either.
Many thanks

DiamondGeezer

March 15th, 2008, 06:58 PM

Dear all,

I am still in shock with the news, and along with I guess like minded people who waited several years extremely angry. Whoever is organising a group to fight this please let me know I want to talk and share some ideas. There is no way I will let it rest. I have some ideas as to how to make damac listen as well so please contact me.

Imre

March 15th, 2008, 08:36 PM

This leaves us with one thing; CANCELATION DUE TO HIGH COST OF CONSTRUCTION!
I heard this from Damac themselves!

actually this is true, many developers have a big problem because of this, they sold out everything in 2004-2005 for 7-800 dhs/sqft..and now will be difficult to finish

Dubai_Steve

March 15th, 2008, 09:56 PM

When did Damac get handover of the plot ? Why did they start selling units 4 years ago if they had no intention of building when it was affordable to do so?

FISHY

March 15th, 2008, 10:26 PM

When did Damac get handover of the plot ? Why did they start selling units 4 years ago if they had no intention of building when it was affordable to do so?

Well, A corrupt company will take your money from you and if the property goes up ,they will give your money back and sell it back at a higher price ,but if it goes down they will build it for you ,basically head you lose ,tail you lose.
The winners are damac.
SHAME ON YOU DAMAC. YOU HAVE NO HONOUR OR INTEGRITY SPECIALLY IN A COUNTRY WHEN HONOUR IS EVERYTHING.

Richard Head

March 16th, 2008, 08:00 AM

Dishonest
Arrogant
Money-Grabbing
And
Corrupt

DiamondGeezer

March 16th, 2008, 10:17 AM

Come on message me, or if there is already a grouping let me know we need to move on this and BE HEARD! cannot let them get away with this dishonesty.

AWE!

March 16th, 2008, 11:42 AM

AWE!

March 16th, 2008, 11:45 AM

Come on message me, or if there is already a grouping let me know we need to move on this and BE HEARD! cannot let them get away with this dishonesty.

Please contact karlosb he has approx ten owners already but we need more!!!

FISHY

March 16th, 2008, 12:42 PM

Please contact karlosb he has approx ten owners already but we need more!!!

Karlosb may shed some ideas to tell us what is next? to our private e Mails.
Shall we have a meeting to discuss this ?
Do we need to collect fund to fight our case?
What is next,Do we need legal help in Dubai to fight our case?
Writing to the Honourable Sheik of Dubai as suggested earlier?

The stakes are very high for all of us.

I will be in Dubai from 30/3 for 10 days,anybody there by chance so we can meet.

Karlosb

March 16th, 2008, 12:45 PM

I have contacted Damac in Dubai but unable to answer any questions - just passing emails on - hope to get a bit more news by thursday but not holding my breath - we all need to email Damac and refuse there stupid offer.

The list of Palm Spring owners I have is increasing and I will collate as many owners as possible so we can all fight this one - the more the better. If you know anyone who has a Palm Springs apartment and has not contacted me please get them to PM me or email me at karlos.brown@btinternet.com

houshang

March 16th, 2008, 02:26 PM

I have received a letter from Damac in London dated 14.03.2008. Here is the text:

We recently wrote to you rgarding your purchase in our Palm Springs developement.
In order to make process as smooth as possible, please be aware that any queries or concerns you may have relating to this matter can be dealt with by the UK CRM Team.
The UK CRM Team can be contacted on 0207 719 6028/29/30/31.
Alternatively by E mail at crmuk@damacgroup.com or by fax on 0207 719 6001
yours sincerely
Marilyn Millanaise
Client Relation Manager

ardi

March 16th, 2008, 02:47 PM

This is just to inform you that Nakheel will handover the plots by Sep 2008. I also know that Damac has 5,6 plots in PJA.

FISHY

March 16th, 2008, 03:35 PM

houshang

March 16th, 2008, 04:52 PM

FISHY

March 16th, 2008, 05:32 PM

Fishy

I understand they have come up with a silly offer like this to test the water and have given us till 30.03 to respond hoping this short grace will make some investors to make a hasty decision as to accepting the offer rather than grouping against it. They did not tell us what would happen after 30/30because they are not that sure about the outcome of the first stage of the show. If you look carefully at the accompanying FORM you will clearly see that this form has nothing to do with the content of the cancelation offer.It is merley a REQUEST FORM meaning that you are asking for cancelation of your purchase and refund without being forced or even being asked to do so.As far as I understand by filling this FORM you are initiating and requesting the cancelation of your purchase. They are trying to get as many investors as possible to opt out at each stage,like they did when they offerd 10 percent to investors in 2006 to cancel their purchase and some accepted that.

I understand this though I am trying to halt Damac ,so they can see that we are not that naive.what about the suggestion of sending e mail to his highness Sheikh Mohammad of Dubai expressing our disgust with Damac defrauding the investors in Dubai,which ultimately would damage Dubai realestate reputation ,people would then think twice before investing in Dubai if they felt the realestate is becoming corrupt as seems the case in Palm Springs.
I am sure his highness will not accept this unfair treatment to people investing in his country for the sake of greedy Damac.

Do not forget people invest in Dubai as it has a reputation of being a safe place to live and invest. This fiasco will paint a very different picture and people no longer feel safe to invest in Dubai if this type of corruption is allowed to go unchallanged.

boston101

March 16th, 2008, 05:42 PM

Fishy

I understand they have come up with a silly offer like this to test the water and have given us till 30.03 to respond hoping this short grace will make some investors to make a hasty decision as to accepting the offer rather than grouping against it. They did not tell us what would happen after 30/30because they are not that sure about the outcome of the first stage of the show. If you look carefully at the accompanying FORM you will clearly see that this form has nothing to do with the content of the cancelation offer.It is merley a REQUEST FORM meaning that you are asking for cancelation of your purchase and refund without being forced or even being asked to do so.As far as I understand by filling this FORM you are initiating and requesting the cancelation of your purchase. They are trying to get as many investors as possible to opt out at each stage,like they did when they offerd 10 percent to investors in 2006 to cancel their purchase and some accepted that.
Actually, these are very good points by 'houshang'. The other couple of things that I can't make sense out of are that why is the Letter, which has financial consequences, is from a CRM manager (who typically don't have much say in financial matters). Also the letter does not bear DAMAC's stamp. In Dubai, typically this means that the document does not have much of a legal value. I know this because even DEWA (the electric company) required me to present them with the stamped page of the contact for proof of ownership for connection, and the my bank required my employer letter to be stamped to open a bank account.

nasim50

March 16th, 2008, 08:37 PM

This is an absolute disgrace.

I hope you guys take these bastards to court and get your deserved profit margins.

It will give the Dubai property market a good kick in the balls, completely corrupt system at the moment.

And if you don't win, one of you investors should go into Damac's offices and shoot the hell out of all their sales consultants and senior people, scum bags all of them.

There will be more projects like this where high construction costs has caused the development not to be built (and not just Damac).

Just watch and see how many projects are put into the "Never Built" section here. There will be hundreds.

This is just the tip of the iceberg, things have to change big time and i think you guys will be the ones to change it in the dubai courts.

Get a good Lawyer
Get massive publicity

I wish you luck.

DHLSPY

March 17th, 2008, 05:30 AM

Damac are a waste of time and they need a kick up the arse with regards to this Palm Springs project. They are liars and I am sure that Nakheel do not even know about what Damac are doing and telling there customers. This is a scam and there is more to it then what we are seeing! I think we should contact Nakheel and send them a copy of the letters we have all recieved.

darshandxb

March 17th, 2008, 01:12 PM

If you guys are planning to take Damac to court i would suggest if you could get a Stay Order from the Court against Damac to restrain it from selling the Plot at todays Market rates and make a killing on it.

nauras

March 17th, 2008, 01:25 PM

http://i28.tinypic.com/15avwh.jpg

nakheel change in design

turbo

March 17th, 2008, 06:13 PM

Palm Spring Investors Group

http://damaconcovered.wordpress.com/

nasim50

March 17th, 2008, 06:41 PM

Too right, slay the bastards in the press

Hanna

March 17th, 2008, 06:49 PM

Hi Guys

I have written a lot about Damac in the Ocean Heights blog over the years
and my feeling's are like most of the bloggers,to my mind they are a shady
company from top to bottom that have big contacts in the Government.
I raised the alarm when I had inside info about them joining the RERA list and how all past past projects from 28.12.07 where excempt which was defeating the purpose this was set up for,the Government gave them an exemption why, because they have no funds and going from new release deposit's to new release deposit's.They have built two buildings over the last 4-5 years out of loads of new releases masterminded by the slick Scotsman Peter Riddoch.

I will be very surprised to see Ocean Heights completed after 4 years of delays,the cost to build this project must have went through the roof and we could be next to see a letter drop the door. I rue the day I took anything to do with Damac and there shoody business practices.

There Dubai CRM has moved on since last month coincidence or what. I don't think so he has timed it right
because he didn't want tainted when the S--T hit's the fan

I have found that the law is geared towards the locals and can be very difficult and costly to win a case in Dubai escpecialy with Government backing.I have said many times the property law system is in its infancy and does tend to look corrupt.

I agree you have to do something the trouble is how to you get the list of all the people that bought in Palm Springs. Damac love that everyone is divided and will find it hard to join up and fight them.One way is to try and get a big UK newspaper add but that doesn't capture all the other nationalities that have bought into the project there could be 10-20 different countries involved.

The contract looks simple and easy to define but they have been smart enough to cover most of there bases.I know because I have already been to a English Lawyer in Dubai and they were not to keen on giving assurances on winning a case in Dubai.

Forget about the newspapers in Dubai the Government control them all the last paper was taken over by them 2 years ago it was called the khaleejtimes and they were hot on Damac that hot the Goverment took them over,So what I am saying that are in cohoots with Damac at the highest level. :cheers:

houshang

March 18th, 2008, 01:05 PM

Nakheel has distant themselves from controversy created by Damac for Palm Jebel Ali by strongly reaffirming today that not only the Palm Jebel Ali is well on track but they will be offering premium villas to investors which will be
ready in 2010.
This is very reassuring from the Master Developer.

turbo

March 20th, 2008, 12:57 AM

It might be worthwhile for every investor to contact the following (list taken from http://damaconcovered.wordpress.com/write/ ):

Dubai Ministry of Finance & Industry
P.O.Box: 1565
Tel: 04 3939000
Fax: 04 3939738

Email: mofi@uae.gov.ae
Website: http://www.uae.gov.ae/mofi/

Minister of State for this department is H.E. Dr. Mohammed Khalfan bin Kharbash

Dubai Government’s Department of Tourism & Commerce Marketing
11th Floor, National Bank of Dubai Building
Baniyas Road
DeiraDubaiecomplaints@dubaitourism.ae or
info@dubaitourism.ae
website: http://www.dubaitourism.ae
UK & Ireland Office
First Floor
25 Pall Mall
London
SW1Y 5EATel : 0044 207 839 0580.
Fax : 0044 207 839 0582
e-mail: dtcm_uk@dubaitourism

Government of Dubai Real Estate Department
http://www.realestate-dubai.gov.ae/
P.O.Box 23073
Dubai
U.A.E.Tel. : 04-3986666
Fax : 04-3988111 Dubai Quality Group
P.O.Box: 9278
UAETel : (971-4) 343 1950
Fax : (971-4) 343 1970
E-mail : info@dqg.org
Website: www.dqg.org

Government of Dubai Land Department
Tel: 0097142222253
Fax: 0097142222251
Email: info@dubailand.gov.aewe
website: http://www.dubailand.gov.ae/

tictaco

March 21st, 2008, 12:21 PM

nasim50

March 21st, 2008, 12:29 PM

Don't talk shit.

Clearly you're a Damac employee.

Go fuck off to another place such as hell.

tictaco

March 21st, 2008, 12:48 PM

nasim50

March 21st, 2008, 12:58 PM

Yes you're a Damac employee

No one would say what you have said to let just Damac get away with it and "take my money and run"

Do no try to influence any of the investors here to get their money back from Damac.

You have your opinion keep it too yourself.

james l

March 21st, 2008, 01:46 PM

FISHY

March 21st, 2008, 06:15 PM

What has happened is a disgrace and it is hard to believe what they are trying to get away with this, but my experience todate in Dubai is that the law is away behind and is always with the developer. I believe this is the first of many developers to go down this road, Dubai is sinking until currency problem is resolved. Investors should unite but if others are risk adverse then take the money and move on, no winners here, it is just a mess and off plan purchase is now risky, if you can see it then perhaps consider purchasing,
I wish everyone the best in this difficuly situation

we must stay united and fight unfair develoer like Damac who cheats their investors and it will be a test for Dubai as a whole and its reputation for outside investors to buy there.

If we win this case ,it is not only good for palm springs investors but for Dubai as a safe place to invest your money in but if we lose I definitly will never buy or visit Dubai again and would certainly advise others the same.

If we do not do anythng we will never know how safe is investing in Dubai and we help to set a precedent for other developers to do the same with other investors.

We must remain firm, steadfast and fight Damac,no matter how long it takes (we already waited more than 4 years!), even if it takes going to court,I am prepared myself to put money towards it. WE MUST PREVAIL.

Dud Banger

March 21st, 2008, 07:10 PM

Just to let you know that 98% of people who bought Palm Springs apartments were British.
Also, Damac are completely wrapped up with the Sheik so you will not get anywhere with taking Damac to court in the U.A.E. - the best way to make them listen is negative press in the UK.
However, if you create negative publicity and get your apartment back, then you will have helped to destroy the market and your property won't be worth as much anyway.
There is no way you can come out of this winning in my view. Best just chalk it up to experience, take your money and move on. That's what I'm going to do.

I don't agree 98% of purchasers are Brits, but even if they where, do YOU or people such as yourself think "Brits" are around UAE to be ripped off, ? I don't think so! The developers are are not slow in promoting the fact England footballers have purchased property throughout PJ as a mass marketing publicity stunt.

We shall shortly see what Damacs hand (if any) is going to be, and believe me us "Brits" will not take shit lying down. So it is best for all parties to mediate and see sense. All we want is an opportunity to be in PJA as our existing contract states! We have waited four years for this.

AWE!

March 22nd, 2008, 01:27 AM

AWE!

March 22nd, 2008, 01:49 AM

I don't think I warranted such an offensive reply. I'd appreciate it if you could refrain from being abusive - it's really not necessary or helpful.

I certainly do NOT work for Damac. I am just trying to be realistic.
Everybody who has invested in Dubai in the last 5 years knows that it was a risky punt. We all knew the property laws weren't in place and that the Sheik can basically make up any law he wants whenever he wants. The property market is naive and undeveloped and therefore highly risky.

Make a fuss with whoever you want. You will not win a legal case in Dubai and may risk the long term damage to a market that you want to preserve. Yes Damac are wrong to do this and it is not the way to treat customers and will undoubtedly hurt their long term business reputation. I certainly won't invest with them again, or with anyone in Dubai. I'm just going to take my money and run and be thankful that I won't be left with a property that I can't sell in 3 years and is worth less than I paid for it because the market is saturated.

All I'm saying is...some you win, some you lose.

Hi tictaci

It is curious that your first contact with this forum is in march 2008 and I for one would like the chance of speaking to you before you made the rash decision of accepting what in any civilised country (of which I still consider Dubai to be) an immoral and illegal(according to contract) act.
Please pm me I will be happy to explain that actually taking Damac to court and winning will actually enhance Dubia's reputation as a place to "DO" business and where the "RULE OF LAW" is upheld.

Hanna

March 22nd, 2008, 10:00 AM

I don't agree 98% of purchasers are Brits, but even if they where, do YOU or people such as yourself think "Brits" are around UAE to be ripped off, ? I don't think so! The developers are are not slow in promoting the fact England footballers have purchased property throughout PJ as a mass marketing publicity stunt.

We shall shortly see what Damacs hand (if any) is going to be, and believe me us "Brits" will not take shit lying down. So it is best for all parties to mediate and see sense. All we want is an opportunity to be in PJA as our existing contract states! We have waited four years for this.

Hi Agree

How could tictaco possibily know how many Brits have bought there unless he has access to the sales spreadsheet,if this was the case I would say he was a Damac employee.Also he made a statement about 'Make a fuss with whoever you want. You will not win a legal case in Dubai and may risk the long term damage to a market that you want to preserve'.this is the exact same laungauge Damac people said to me at a function.So this leads me to believe he is a Sad Damac high ranking employee.

This was from an article I read today the word is getting around slowly :

Dog Corner:Damac’s attempt to ‘buy-back’ its Palm Springs project (Palm Jebel Ali) , 5 years after its launch, will surely go down as one of DUBAI’s greatest disgraces. While Damac is not owned by the Dubai government, it presents itself around the world as ‘Dubai’. What has happened here is that Damac sold out the project 5 years ago, and cannot now build it without incurring a significant loss. It is attempting to buy out all of its customers and offering to pay them 6% per annum on the sum invested. There are other Developers who find themselves in the same position, but are not resorting to these DISGRACEFUL tactics. These people don’t deserve your money. A real case of ‘I will only play this game if it suits me’ and ‘expect me to go home if I am not winning’. Surely Damac are bigger than that ?

Sadly, no. And to make all you poor Damac clients feel even more irritated, Damac have either sold the land they were going to build Palm Springs on, at a very enormous profit or they will launch a new project – when things are ‘quieter’. Yes, this is how Damac are. Just not to be trusted. You are not valued by them. You are just an easy profit target, who can be abandoned when they have your money. You are just potential victims of their equally disgraceful pricing strategies. This is one incident that needs to hit the international newspapers. I am not sure Sheikh Mohammad knows what is going on here. And he would NOT be happy with the damage the decision will have the hard earned, and deserved, respectable reputation of Dubai. It is time Damac.

:cheers:

tictaco

March 22nd, 2008, 11:25 AM

Not long after I bought the apartment, I asked Damac what the nationality breakdown was for purchasers at Palm Springs for my own interest and with a view to who the future market might be, and was concerned to be told that it was 98% British.
I have also since read articles that say the majority of buyers in Duabi are British. The reason that I was concerned was because I could see the future Dubai property market being interminably linked to the UK property market - much like Spain is today - hence all the property bubbles and corrections that happen in the UK are likely to be mirrored in Dubai - not good for an investor looking for a diverse portfolio!
I am 100% behind everything that has been said on here about Damac; it's corrupt, despicable behviour and if you have the appetite for a fight then go for it. All I am saying is that for me, as a small time investor, it was a gamble that hasn't paid off and I can't afford to have my money tied up any longer. I also think that this is the beginning of the end for the Dubai market, and you only have to look at what's happened in Leeds and other UK cities to see what over-supply does to a market. I think there's money to be made in Dubai if you can ride it out for the next 10-15 yrs but I personally can't wait that long.
This will be my last post on this forum, since I am obviously upseting people which was not the intention.

DiamondGeezer

March 22nd, 2008, 11:43 AM

Hanna

March 22nd, 2008, 12:23 PM

I am glad to hear that my fellow investors and our supporters are generally of the same opinion ie that we will fight it out. My inderstanding of Palm Springs when buying was approximately 50 to 60 % were british buyers. The UK is the most important market for Dubai and I dont think even Damac are going to be eventually allowed to get away with this robbery - as long as WE follow this through to the end. The courts are obviously just one option that we are going through. I also know of some journalists who will just love to put some attention on Damac and what they have done.

So what it comes down to is that do you think in the end with all the money involved for the developers in Dubai, are they going to risk one rogue developer to get away with thiss? And how are Damac going to feel if in every property show they do and when they launch any new projects we have people distributing leaflets just telling them how we got conned with Palm Springs?

Im quite convinced that with the investors group we have in place, and the sterling work they are putting in we are going to get something very positive. Anyone who wishes to run away luckily seems to be in a very small minority!

Hi DiamondGeezer

I wish you all the luck with this case.

I have been writing sometime now about Damac and there shady practices, there were a lot of quite investors out that never gave me a reply,maybe they were under the impression that it can't happen to me well suddenly they now know it can, and I am sure there will be many more projects binned,this is the reason that the 'LAUGHABLE RERA' gave them an exemption on the the escrow accounts,they must have had a look at there books and said my God you 'asses' are burst what have you done to the reputaion of Dubai if this info get's out.Then comes the cover up within high places in GOVERNMENT AGAIN because this has been going on for a few years.

There is realy no excuse's the investors including myself can give, all we had to do was Google Damac and see what sites it throw up then you would have got a feel for what this company is about. :cheers:

DiamondGeezer

March 22nd, 2008, 12:42 PM

Hi DiamondGeezer

I wish you all the luck with this case.

I have been writing sometime now about Damac and there shady practices, there were a lot of quite investors out that never gave me a reply,maybe they were under the impression that it can't happen to me well suddenly they now know it can, and I am sure there will be many more projects binned,this is the reason that the 'LAUGHABLE RERA' gave them an exemption on the the escrow accounts,they must have had a look at there books and said my God you 'asses' are burst what have you done to the reputaion of Dubai if this info get's out.Then comes the cover up within high places in GOVERNMENT AGAIN because this has been going on for a few years.

There is realy no excuse's the investors including myself can give, all we had to do was Google Damac and see what sites it throw up then you would have got a feel for what this company is about. :cheers:

Hi Hanna,

This is the ultimate con they are trying, not a matter of delays, lack of compensation, but trying to cancel a project simply because the P jebel ali is changing. They are getting a plot, which is OUR plot but they are trying to rob us from the new plot. They also think they will get away with it but they seriously did not know the scale of the feeling. Remember that either investors have been waiting for 4 years, or even worse paid huge premiums. With the amount of shit that will hit the fan on this one it is going to create some serious ripples.

Out of interest have any of the investors got the sayings from Peter Riddoch where he went on about how much money the investors with Damac had made because of the appreciation of the property whilst it was still off plan? I need this for some stuff I am putting together on them.

Hanna if you have some info on previous cons pulled by damac please message me and I will give you my email address, though NOTHING can compare with robbing you of a plot!

Hanna

March 22nd, 2008, 12:54 PM

Hi Hanna,

This is the ultimate con they are trying, not a matter of delays, lack of compensation, but trying to cancel a project simply because the P jebel ali is changing. They are getting a plot, which is OUR plot but they are trying to rob us from the new plot. They also think they will get away with it but they seriously did not know the scale of the feeling. Remember that either investors have been waiting for 4 years, or even worse paid huge premiums. With the amount of shit that will hit the fan on this one it is going to create some serious ripples.

Out of interest have any of the investors got the sayings from Peter Riddoch where he went on about how much money the investors with Damac had made because of the appreciation of the property whilst it was still off plan? I need this for some stuff I am putting together on them.

Hanna if you have some info on previous cons pulled by damac please message me and I will give you my email address, though NOTHING can compare with robbing you of a plot!

Hi DiamondGeezer

That's the zip file sent. :cheers:

houshang

March 22nd, 2008, 03:10 PM

Hi everyone

Launch of Palm Springs and the good response from UK investors gave Damac a solid platform to launch their other projects successfully in Uk and surely
would want to continue to do so, specially with projects like Sharm Al
Sheikh in Egypt. So they should really know that the decision they are making today is not only about the future of Palm Springs project but also about their future in UK market.With opening of more and more brunches in UK Damac is showing its desire to grow in this market.

I do not agree with comments regarding over supply of properties either in UK or Dubai. Housing market in UK is suffering moderately from credit crunch in US affecting bank lending,and Dubai market is very much a cash market with huge oil funds chasing too few assets.With more people wanting to live in Dubai the property market will continue to grow in Dubai for a very long time and If Damac wants to be part of it should ACT NOW!

AWE!

March 23rd, 2008, 12:08 AM

DiamondGeezer

March 23rd, 2008, 10:52 AM

I think we all can guess that there appear to be some ulterior motive from tictaco postings. Also the comparisons between Leeds and dubai is just plain ridiculous. Anyone who is in the UK will tell you that.

Obviously there have been huge gains in Dubai over the last few years and it cant continue, so now the gains will be healthy but not huge. Thats why we are so pissed off that we have been robbed of the gains! When I purchased in Palm Springs palm jumeirah was 1 bed sea view was about £145k, try to get that now!

Anyway the whole reason Damac have said 30 March for a reply was simply because we then dont have time to organise ourselves and people lile tictaco just try to scare people.

Anyway i am so pleasantly surprised by all the support shown by people who have not even invested in Palm Springs but they cant stand this con being attempted by Damac.

Hanna

March 23rd, 2008, 10:59 AM

The Sheikh e-mail address

http://www.sheikhmohammed.co.ae/vgn-...007064a8c0RCRD

AWE!

March 24th, 2008, 02:55 PM

The Sheikh e-mail address

http://www.sheikhmohammed.co.ae/vgn-...007064a8c0RCRD

Tried above but page is currently unnavailable.
Will keep on trying though.
Hope everyone alse will.

trixie1

March 24th, 2008, 06:28 PM

I think we all agree we have been shafted by Damac, anybody suggesting otherwise on this forum has lost their senses. The question is what do we do???

WE need to talk to someone who knows about the law in Dubai, I initially agree with Hana, any case will probably be hard to win and take a long time.

Whatever the percentage of UK investors in Palm Springs is, we all know that the UK market is massive for both Damac and Dubai, neither can afford a sustained amount of bad press. Some papers I am sure would only be to happy to have this story.

Lets wait to see what Damac come back with after the questions. Their opening offer was pathetic and represents no compensation at all, their not even offering 6% p/a

trixie1

March 24th, 2008, 06:35 PM

Hello Palm Springs Investors

I am new to this forum. I am the joint owner of apartment 1114.

I’ve been unable to post my own thread as I’m having registration problems, so being eager to say my piece I’m doing so via trixie1.

KARLOSB - Can you please include Dr Kerry Davies and myself (Gareth Jones) to your email list. We have just responded back to DAMAC flatly refusing either offer.

kerry@davies1019.fsnet.co.uk (Dr Kerry Davies)
ATPL_Pilot@hotmail.com (Mr Gareth Jones)

With the US$ exchange rate 20% down since 2004 a 6% increment (Not evenly annually calculated!) means we would receive less money back than we initially gave!! Let alone the £200,000+ capital appreciation that we have lost. And the second offer of a 15% reduction from ‘today’s prices’ is no compensation. DAMAC offer that anyway during the Dubai shopping festival + a Bentley or a corporate jet! We would expect at least a 50% reduction from another development of equal size and standing to reflect the capital appreciation that we have lost since 2003/04.

I’ve reviewed the contract with trixie's joint owner this evening . We feel that there is a breach of contract and that the quarrel over The Plot is NOT between DAMAC and the investors, but between DAMAC and the developer of The Palm. We will explain at length why in a few days and we will send our comments via FISHY to post on this forum.

Does anyone remember Nikki? (DAMAC Sales Rep in 2004) Nikki back in the early days once sent out an email to every Palm Springs investor, and copied everyone in. If anyone has that email archived listing all the investors email addresses we can trace all the Palm Spring investors and form a large protesting group against DAMAC’s offer.

The cost of labour and materials has increased considerably in Dubai since we put our deposits down back in Jan 2004. It would appear that with the delay in allowing the foundations of Jebel Ali Palm to settle DAMAC have calculated that they can either no longer build Palm Springs at a profit, or they can sell the same plot for at least twice (if not triple) what we paid.

We paid approx. 900,000 Dhs for a 2 bedroom in Jan 2004. In the summer of 2006 I visited the London DAMAC office and the sales rep said that it would sell for over £300,000; the capital appreciation was more than double then!

Significantly, the London sales rep also let slip that DAMAC were told off for releasing the Palm Springs project way too early and too cheaply. But DAMAC being as greedy as they are went ahead anyway taking our deposits to keep up their cash flow to fund other projects.

So it would seem that DAMAC have now found it more lucrative to cancel the Palm Springs project and return the investor’s deposits with a token amount of interest than to proceed. DAMAC have other plots on JAP that are selling for double/triple what they sold them to us for.
I’m in favour of mounting a legal challenge against DAMAC. Can I suggest that we attempt to hire a lawyer on a ‘no win, no fee’ basis. Does anyone have any contacts? And in the meantime, keep up sending those damaging articles to the UK newspapers. The vast majority of DAMAC investors are British and DAMAC would not welcome a sustained negative marketing campaign in the British press.

We will lose a serious amount of money if we give in easily. We will throw away £200,000 / 2 bedroom apartment in capital appreciation alone and a life time tax free rental income of £30,000 / year. There is no way I’m given up that kind of pension without a bloody fight!

Hanna

March 24th, 2008, 09:14 PM

Lawsuit

March 25th, 2008, 12:06 AM

Damac are not going to role over we clearly need a major Dubai firm representing us.Such a firm would not do it on a contingent basis particularly as it is likely to be a drawn out dispute.I am in contact with two major firms .
Lets see what we can do the first thing all investors should do is to refuse the offer by fax as the contract says a fax is received the day it is sent.My reading of the contract is the Force Majeure clause does not apply as I assume the developer will provide a suitable alternative.
I bought in 2005 with a premium,I assume my contract is the same as the original.It would be interesting to hear from anyone who has bought recently to see if the contract changed.Certainly the lawyers would be interested in this.

DHLSPY

March 25th, 2008, 07:14 PM

Take Damac to court at least they will be named and shames. The contracts are all the same no changes in terms and force majeur can only be declared and as per agreement a certificate issued to confirm the same which I have not seen yet! Damac has 10 other plots on the Palm so could very easily move Palm Springs to another plot or minimum offer all Palm Springs owners first option on another project on the Palm at the same rate when we first bought! Damac are a bunch of liars and Peter stop blaming customer services as I know internally this is what you are doing! It has nothing to do with Customer Services you are the one who made the call................ so take responsibility. Why is it that so many customer services staff including the two head boys have resigned in the last two months? Even internally people are fed up with what is going on. Damac are on the way down................

DHLSPY

March 25th, 2008, 07:15 PM

Hanna

March 26th, 2008, 12:59 PM

Take Damac to court at least they will be named and shamed. The contracts are all the same no changes in terms and force majeur can only be declared as per agreement where a certificate issued to confirm the same which I have not seen yet! Damac has 10 other plots on the Palm so could very easily move Palm Springs to another plot or minimum offer all Palm Springs owners first option on another project on the Palm at the same rate when we first bought! Nakheel would also be very interested to know why Damac are using them as the excuse for plot changes! Damac are a bunch of liars and Peter stop blaming customer services as I know internally this is what you are doing! It has nothing to do with Customer Services you are the one who made the call................ so take responsibility. Why is it that so many customer services staff including the two head boys have resigned in the last two months? Even internally people are fed up with what is going on. Damac are on the way down................

Hi DHLSPY

That is what I heard as well about there head of Customers relation Dept,it was falling apart again.When I bought in 2005 they wiped out the dead wood and renewed with a new lot of dead wood now they have been 'found out' and the game starts all over again.I hope it does not lead to a collapse but then again my dealing's with them in the past nothing would surprise me with this mob.

I wonder if the Government run local newspapers might add a few lines in there newspapers concerning the plight of the Palm Springs clients :cheers:

DiamondGeezer

March 26th, 2008, 10:16 PM

We have had great ideas in terms of action against Damac so summarising:

1. Legal action.
2. Paid adverts in papers - we already have some papers interested in doing editorials, however the paid adverts will be immediate.
3. We will pay for the "Damac the truth" Brochure and had out at the agreed shows/presentations.
4. I have spoken to a client of mine regarding the documentary, once again thanks to all the people willing to contribute.

So far nearly all this is in the UK, I would really like to hear from someone who wants to target Damac in other countries over this con they are trying to pull. Even though most of the people are in the UK the more we get to them the better, we have to make sure they dont con poor unsuspecting investors everywhere.

Salty

March 27th, 2008, 01:08 AM

Way to go you guys.

From today's Gulf News:

Damac's buyback plan angers investors

Dubai: Investors in Damac's Palm Springs project on Palm Jebel Ali are furious at being 'bought off' by Damac due to project alteration.
Damac is now trying to 'buy back' its Palm Springs plot on Palm Jebel Ali five years after its launch. Damac cannot go ahead and build the development without incurring a significant loss as the master-developer plans have changed.

Hussain Sajwani, chairman of Damac Holding said in a statement, "Damac Properties has been advised that the master development of Palm Jebel Ali has been redesigned and the Palm Springs plot will not be delivered. Due to redevelopment of the plots, the building forming the Palm Springs development cannot be situated on the re-allocated plot and, as a result, the Palm Springs project has been cancelled.

"In view of this, Damac Properties will provide customers an opportunity to release the investment made in Palm Springs and transfer the monies to any other project in the Damac Properties portfolio at a discounted price 15 per cent below current market value. As an alternative, Damac would refund monies paid with interest."

However, according to investors, Damac is only offering six per cent per annum on the sum invested.

Options

Investors are now considering taking the complaint directly to the Ruler's Court. Buyers are already furious over repeated project delays, contractual issues and complaints of poor customer service by Damac.

Marwan Bin Galita, chief executive officer of Dubai's Real Estate Regulatory Authority (Rera), said, "Any investor who has a problem or misunderstanding with a developer, please check our website, or email us or come and see us and we will clarify it for you. Or get legal advice. It's very easy but people don't want to spend money. The problem starts with people signing a contract without asking anybody first."

Source link:

http://www.gulfnews.com/business/Real_Estate_Property/10200671.html

nasim50

March 27th, 2008, 11:32 AM

Did you see what RERA had to say about this situation in this article............basically check your contracts. They don't want to get involved essentailly.

They're a bunch of fucking idiots.

patdubai

March 27th, 2008, 11:41 AM

I agree!!!!!!

nasim50

March 27th, 2008, 11:58 AM

explain to me how you can have a "misunderstanding with a developer"............yea a fucking 5 year misunderstanding.

Complete retards

getmonty

March 27th, 2008, 12:12 PM

???

nasim50

March 27th, 2008, 12:17 PM

read the article then you'll get it

patdubai

March 27th, 2008, 12:43 PM

Sorry about the last comment my son said that.

As an owner I would just like to say that taking legal action is an option but will be
long and drawn out.
I would like to see this decision overturned immediately the only way to do this is with
World wide Mass bad publicity.
I am sure His Highness Sheikh Mohammed Bin Rashid Al Maktoum Vice President And
prime minister And RULER OF DUBAI, will not stand by and allow one rogue trader
Rodrick to bring SHAME and DISHONOUR to his beautiful country.

He alone has the power to stop this shameful act of GREED.

patdubai

March 27th, 2008, 01:15 PM

fUTHER BAD NEWS is we where told yesterday by a reliable source. which is where we
found your site, That regardless of your decisions all monies paid will be returned at
end of month as FINAL.
I suggest if this happens all cheques should be immediately returned RECORDED POST
as not acceptable, may i suggest returning them to his HIGHNESS not Damac.

patdubai

March 27th, 2008, 01:15 PM

Dubai_Steve

March 27th, 2008, 03:22 PM

People who bought into Damac's Palm Springs project on Palm Jebel Ali have voiced anger after the company cancelled the development, says a report in Gulf News. Damac says alterations on the Palm mean it cannot build the project, but investors feel the compensation they are being offered is paltry. It has told customers they can transfer their initial investment to other Damac properties at a 15% discount on current values. Alternatively they can get their money back plus interest, but investors say they are only being offered a rate of 6%. Investors, who are already angry over the company's poor customer service, have said they may begin legal action.

http://www.ameinfo.com/151317.html

Naz UK

March 27th, 2008, 09:11 PM

I didn't really wana do this, but what the heck (my love for Damac is too great for me to miss this opportunity :) )....

If any Palm Springs investors would like to air their views with Construction Week, please come forward (via. PM of course) and I would appreciate any documentation, i.e. official letters from Damac regarding the cancellation and refunds, or indeed any previous supporting evidence in favour of the investors.

Thanks :)
Naz.

Karlosb

March 27th, 2008, 10:07 PM

Naz your inbox is full - contact me at karlos.brown@btinternet.com

AWE!

March 27th, 2008, 11:35 PM

DHLSPY

March 28th, 2008, 08:01 AM

This is true at the end of the month Damac will send letters to all customers informing them that there refunds will be processed in light of no response to the two options given. Please note all buyers under Damac policy and UAE law refunds will not be processed unless and until the original sales and purchase agreements are returned!

DHLSPY

March 28th, 2008, 08:04 AM

Did you see what RERA had to say about this situation in this article............basically check your contracts. They don't want to get involved essentailly.

They're a bunch of fucking idiots.
RERA will get involed and to be honest they already have many issues with Damac. Keep the pressure on. Inland Revenue please check out Damac's flaunting of money laundering rules in UK! They dont deposit money in UK banks they are using exchange houses to pour the money back to Dubai! Keep up the battle guys yet i believe a consolidated effort is required and a rep on behalf of all the owners should act as spokemans and approach the press and media.

Striderr

March 28th, 2008, 12:37 PM

RERA will be involved. Does anyone have an address for them? - I can't see contact details on their web site.

Hanna

March 28th, 2008, 01:34 PM

Hi All

Please don't expect to much of Rera they are the one's that let Damac get
away with not signing up past projects in the first place, the system stinks and the letter from the CEO is a typical response from a Government agent in Dubai at the present time.Why has the CEO or Peter Riddoch not put there head above the parapet (because they don't give a dam) they are well down the line on there pyramid selling tactics just ripe for a crash ! :cheers:

Marwan Bin Galita, chief executive officer of Dubai's Real Estate Regulatory Authority (Rera), said, "Any investor who has a problem or misunderstanding with a developer, please check our website, or email us or come and see us and we will clarify it for you. Or get legal advice. It's very easy but people don't want to spend money. 'The problem starts with people signing a contract without asking anybody first".

nasim50

March 28th, 2008, 02:41 PM

As i said Marwan is a complete an utter PRICK!!!!!!!

He is not competent in being a CEO and has no relevent credentials for this watchdog agency.

I had a talk with him on another matter a couple of months ago in a on going email conversation about another development and then he started to ignore my emails.

So i sent him a leaving email, basically to go fuck himself, as corrupt people such as himeself will get what is coming to them in Hell.

Come on what CEO retard says "to go check you contracts again" and "a misunderstanding with a developer".

Marwan Bin Ghualtia AKA............. D.I.C.K.H.E.A.D

RERA is DAMAC..........DAMAC is RERA

Dud Banger

March 28th, 2008, 05:57 PM

Peter Riddoch all as I can say remember what happened to Robert Maxwell.:bash:

dubayyy

March 28th, 2008, 05:58 PM

This is really an unacceptable response by RERA - they need to show a strong hand here or the market will lose confidence in this agency and the Dubai real estate market as a whole.

I would encourage all investors to email Marwan Bin Galita and make their feelings clear on this issue. I will certainly be doing so.

Nasim50 - can you please publish his email address.

nasim50

March 28th, 2008, 06:20 PM

here's the fucker's email address

Marwan@dubailand.gov.ae

Bombard him with complaints

DHLSPY

March 28th, 2008, 08:34 PM

DHLSPY

March 28th, 2008, 08:35 PM

Hanna

March 28th, 2008, 10:10 PM

Email

peter@damacgroup.com

Mobile

00971 50 454 9430

By the way Fareed and Alan the only two people who had a brain in CRM department of Damac have now resigned (wonder why!) and not that have someone by the name of Raseem heading the department who is completely useless and has no idea. The customer services department is in a complete mess not because they are bad but they are not to blame for the mess that Peter has caused. What on earth is going on in Damac?????

Bombard Peter.

Hi DHLSPY

I agree 100% Alan was a good guy it was Peter Riddoch the 'photoshoot
salesman' that was always the problem,all his employees seem to have been shit scared of the man for some reason. I don't know what hold he had over them.I have met the two of them and my opinion is Riddoch was a conman
and I have still have the same views on the man. :cheers:

AWE!

March 29th, 2008, 12:32 AM

From Hence forth the ceo of Damac
shall be known as Peter "Rid DICK"
Because for the life of me I do not know why he has chosen this path, the investors of Palm Springs are intelligent solvent individuals who , for good reason have paid a pemium to be on this unique development.
Does the idiot seriously think we would just roll over and play studid!!!
The Sheikh should look at this mans ALCOHOL intake as I think it has a bearing on his decision making.

Any comments accepted...

Dubai_Steve

March 29th, 2008, 02:02 AM

Peter will give a keynote speech at the Construction Project Risk Management conference.
http://www.iqpcevents.com/ShowEvent.aspx?id=71314&details=84134

http://www.iqpcevents.com/uploadedImages/EventContent/Dubai/2008/May/10391003/Assets/peter%20riddoch.gif

Monday 19 May 2008

09.10 OPENING KEYNOTE:

Developing A Risk Management Culture Within Your Company
Balancing time, cost and quality in project risk management in your company

Successful identification and assessment of risks to quantify the possible impact on your project bottom line

Determining the right risk mitigation strategy: reduce, accept, avoid or transfer

Peter Riddoch
Chief Executive Officer
DAMAC Properties

234sale

March 29th, 2008, 09:07 AM

PRICK!!!!!

DO YOU REALISE SOME PEOPLE HAVE PAID A PREMIUM ON THESE PLOTS.
IT IS WORTH GOING TO COURT AS THE POSSIBLE BENEFIT OUTWHEIGHS THE LOSS BY A POTENTIAL OF SEVEN TO ONE.

I.E. YOU IDIOT

IF YOU PAID £50,000.00 DEPOSIT PLUS £50,000.00 PREMIUM (£100,000.00)
YOUR PROFIT ON THE PREMIUM IS £350.000.

NOW GO AND KISS PETER RIDDOCKS ARSE AND TELL HIM YOU TRIED YOUR BEST YOU IMBECILE!!!!!

P.S COULD YOU PLEASE GET US A LIST OF ALL THE INVESTORS OF DAMACS PALM SPINGS....... THANKS IN ANTICIPATION.

AWE! you need to calm down.

Yes I do understand the issues envovled in damac, buying secondary market uncomplete properties and developers pyramid schemes, I have been saying it for ages...

You need too see the bigger picture,,
This could bankrupt DAMAC, then no one will getting anything...

Look on the hold section, look how many times I have put forward problems faced by developers.

Call me what you like, It's funny...:lol:

Now I have your attention, If you ever want to fight some one, running towards them shouting and screaming will let them get prepaired..

Dont let Damac get prepaired, form a group of investors,, work out the plan. I'm sure every developer reads this forum so do give ideas away.

Salty

March 29th, 2008, 10:04 AM

trixie1

March 29th, 2008, 10:14 AM

Marwan Al Qamzi
Managing Director, The Palm Jebel Ali
Nakheel

This guy will also be at the construction conference

GoDubai!

March 29th, 2008, 06:43 PM

^^

You couldn't make this up could you?

It would be HILARIOUS if it wasn't so serious for everyone who has bought in Palm Springs.

Looks like he's gone for the "transfer" option - in a big way.

:ohno:

One of the problems in the UAE's young real estate market is that you have instant experts and instant, self-appointed leaders of industry. DAMAC is all into this sort of thing--smoke and mirrors--and anyone who can make money riding on its coattails will try. Thus, you have the likes of every self-styled leadership conference in the industry filling its billing with the likes of Riddoch and company. The audience consists of equally self-aggrandizing wannabes, so all go away happy at the networking opportunity, while the quality of design, workmanship and management on Dubai's projects continue to suffer. It is lack of planning and operational expertise, in addition to greed and self-aggrandizement which has resulted in this and other Damac debacles.

Hanna

March 29th, 2008, 06:52 PM

One of the problems in the UAE's young real estate market is that you have instant experts and instant, self-appointed leaders of industry. DAMAC is all into this sort of thing--smoke and mirrors--and anyone who can make money riding on its coattails will try. Thus, you have the likes of every self-styled leadership conference in the industry filling its billing with the likes of Riddoch and company. The audience consists of equally self-aggrandizing wannabes, so all go away happy at the networking opportunity, while the quality of design, workmanship and management on Dubai's projects continue to suffer. It is lack of planning and operational expertise, in addition to greed and self-aggrandizement which has resulted in this and other Damac debacles.

Hi GoDubai

Well said you got it in one I have said all along that Damac were winging it
pity the penny didn't drop with me about them till about 6 months into my deal.You live and learn lets hope it is soft fall :cheers:

bizzybonita

March 30th, 2008, 08:51 AM

Investors Express Warth Over DAMAC'S Back-Out

Investors of Damac's Palm Springs project on Palm Jebel Ali are enraged about the project being 'bought off' by Damac due to project alternation.

Damac is now planning to 'buy back' its Palm Springs plot on Palm Jebel Ali, five years after its launch. Damac is not in a position to proceed with the construction of the development, without incurring a significant loss as the plans of master-developer seems to have changed.

The Chairman of Damac Holding, Hussain Sajwani, mentioned in his statement said that Damac has been advised that the Palm Jebel Ali master development has been redesigned and the Palm Springs plot will not be delivered.

Due to redevelopment of plots, the Palm Springs development could not be positioned on the re-allocated plot and hence the Palm Springs project has to be cancelled, he added.

He added that, Damac will provide its customers an opportunity to release the investment made in Palm Springs and transfer the money to any of other projects of Damac at a discounted rate of 15 percent below current market value. As an alternative, Damac is ready to refund money paid by customers, with interest.

However, investors claim that Damac is offering only six percent per annum on the sum invested. The investors are considering taking the complaint directly to Ruler's Court, as they are already furious about the repeated project delays, contractual issues and poor customer service by Damac.

The Chief Executive Officer of Dubai's RERA (Real Estate Regulatory Authority), Marwan Bin Galita, said "Any investor with a problem or misunderstanding with developer, please check our website or meet us personally and we will clarify it for you.

R

DUBAI INVESTOR

March 30th, 2008, 02:27 PM

Interesting but same time scary reading regarding Damac....

http://www.khaleejtimes.com/DisplayArticleNew.asp?section=theuae&xfile=data/theuae/2006/june/theuae_june268.xml

http://www.khaleejtimes.com/DisplayArticleNew.asp?section=business&xfile=data/business/2006/july/business_july64.xml

http://www.khaleejtimes.com/DisplayArticleNew.asp?section=business&xfile=data/business/2006/april/business_april524.xml

http://www.khaleejtimes.com/DisplayArticleNew.asp?section=business&xfile=data/business/2003/november/business_november195.xml

http://www.khaleejtimes.com/DisplayArticleNew.asp?section=theuae&xfile=data/theuae/2006/june/theuae_june66.xml

http://www.khaleejtimes.com/DisplayArticleNew.asp?section=theuae&xfile=data/theuae/2005/may/theuae_may45.xml

AWE!

March 30th, 2008, 09:15 PM

Hanna

March 31st, 2008, 12:32 PM

Hi

Just goes to prove they are still trying to sell Apts in Ocean Heights
5 years after it was put on the market is that some kind of record for
the industry in selling tactics. :cheers:

PS. They are switching to India for sales I wonder why ! (have they ran out of mugs in the UK).

Damac signs up with 60 agents in India
By Staff Writer on Monday, March 31 , 2008

Damac Properties has signed up with 60 real estate agents in India across metros and tier-one cities to market its products.

“We are proud to have signed on 60 agents in India; as the demand is high, we wanted to touch each corner of India through an experienced network of agents,” Hussain Sajwani, Chairman of Damac Holdings that is the parent company of Damac Properties, said. The company has taken this initiative to market and sell its regional properties to the Indian investors, according to the statement.

“We will regularly provide our agents all the necessary information and training to sell our properties,” Sajwani said.

Hussain Sajwani, founder and chairman of Damac Holding said, "As the demand is high; we wanted to touch each corner of India through an experienced network of agents. We will regularly provide our agents all the necessary information and training to sell our properties. We have an agent's relationship department who provides all the necessary support to the company's agents."

The Damac Agents Academy - a project initiated by Damac Properties, offers sales training for its agents.

Product knowledge The academy offers agent partners an opportunity to hone their selling skills to international standards.

"The main purpose of the training that Damac provides its agents is to equip agents with product knowledge - Damac brand and its value, the sales process, luxury property selling skills; raising the bar and setting a service benchmark in the real estate market," said Peter Riddoch, chief executive officer.

Damac Properties, will market its Dubai-based 'Ocean Heights', the 82-storey award-winning marvel in Dubai Marina, 'Lotus Heights' located in the bustling Business Bay, 'Park Towers' at Dubai International Finance Centre, and several recently launched high end luxury living options through its agents.

bizzybonita

March 31st, 2008, 12:41 PM

Damac buyers consider legal action

People who bought into Damac's Palm Springs project on Palm Jebel Ali have voiced anger after the company cancelled the development, says a report in Gulf News. Damac says alterations on the Palm mean it cannot build the project, but investors feel the compensation they are being offered is paltry. It has told customers they can transfer their initial investment to other Damac properties at a 15% discount on current values. Alternatively they can get their money back plus interest, but investors say they are only being offered a rate of 6%. Investors, who are already angry over the company's poor customer service, have said they may begin legal action.

via Ameinfo

ardi

March 31st, 2008, 02:03 PM

Guys, the plots are priced between AED 500,600 per sqft in PJA at the moment, and no one is ready to sell. Damac will relaunch this project next year, wait and see.

bizzybonita

April 1st, 2008, 09:17 AM

Palm Springs investors face millions in losses

http://www.arabianbusiness.com/images/magazines/arabianbusiness.com/2008_03_31/Palm-Springs_thumb.jpg

Devastated investors in Damac Properties' axed development on the Palm Jebel Ali are facing millions of dirhams in losses, one of the project's investors has told ArabianBusiness.com.

The Dubai-based developer recently cancelled the much-delayed Palm Springs project five years after launch, citing "redevelopment of the plots".

Damac has offered investors compensation of 6% annual interest on the original purchase price, or the option of transferring their investment to another project with a 15% discountMany buyers have snapped up Palm Springs units on the secondary market, meaning off an investor and not directly from the developer, paying up to a 50% premium on the original purchase price.

Prior to the cancellation of the project, Palm Springs units were estimated to be worth more than double the original purchase price, according to investors.

Investors are now threatening to take Damac to court if it does not reverse its decision and continue with construction.

Nearly 60 UK-based investors in the project have formed a group to take on Damac, giving the developer until April 11 to reverse its decision or face legal action.

London-based investor Karl Brown told ArabianBusiness.com members of the group were facing average losses on their investment ranging between 300,000-600,000 dirhams ($81,000-$163,000), depending on when they purchased their unit.

Brown said he bought his Palm Springs apartment on resale in March 2006 for 1.5 million dirhams and believes the property is now valued at more than 2.2 million dirhams.

However, he will only receive the original purchase price, estimated at about 1.1 million dirhams, plus 6% interest for each of the five years since the project's launch.

Brown said Damac had told him it was not the developer's contractual obligation to refund money that was paid on resales.

Brown said UK investors' losses were compounded by the rising value of the British pound against the dirham.

Many investors purchased their units when the exchange rate was 6.4 dirhams to the pound, while the exchange rate is now around 7.3 dirhams to the pound, he said.

Brown said the group, the Palm Spring Investors Group, was appealing to Dubai's Real Estate Regulatory Authority (Rera) and Nakheel, master developer of the Palm Jebel Ali, for assistance with the dispute.

Damac was not immediately available for comment, but in a statement issued earlier the developer said it understood the situation was serious and unfortunate, but that it was "completely outside Damac Properties control".

“Due to redevelopment of the plots, the building forming the Palm Springs development cannot be situated on the re-allocated plot and as a result, the Palm Springs project has been cancelled, Niall McLoughlin, senior vice president of corporate communications at Damac Holding, said in the statement.

“Damac is committed to its customers and in view of this cancellation, Damac Properties will provide customers an opportunity to release the investment made at Palm Springs and transfer the monies to any other project in the Damac Properties portfolio at a discounted price 15% below current market."

The 25-storey Palm Springs project had originally been planned for completion by late 2007, and buyers were already angry over repeated delays, contractual issues and complaints of poor customer service by Damac.

Damac threatened with lawsuit after project axed
Investors unhappy with compensation after developer cancels Palm Jebel Ali project.

R

taxi201

April 1st, 2008, 11:33 AM

Way to go karlslob!! How can Damac get away with this? Why cant tehy just give everyone a new apartment in the new development on the new plot?
Has anyone got a lawyer involved yet?

Hanna

April 1st, 2008, 11:51 AM

Hi taxi201

They are trying to get away it because it's 'Dubai' and the contract was
made up by Dubai lawyers and Damac think its a done deal as far as courts
are concerened, don't forget it's not the first time I have heard they have
went to court with clients on other occasions, the trouble is all the newspapers are Government run and you don't hear many stories about bad developers or any bad news that could effect Dubai, a bit like Russia was except a lot worse ! :cheers:

Way to go karlslob!! How can Damac get away with this? Why cant tehy just give everyone a new apartment in the new development on the new plot?
Has anyone got a lawyer involved yet?

234sale

April 1st, 2008, 12:21 PM

Question.......

Which private company spends the most money in Dubai on advertising..

Answer......

Dud Banger

April 1st, 2008, 12:26 PM

Undertones of Spain property market here. Ten to fifteen years ago there was millions rolling into Spain until developers greed and corruption took over and the investor was/is battered. The developers thought they were invincable. This type of attitude has resulted in the arse falling out of the Spanish market. When I purchased in Dubai four years ago the estate agent was fresh faced out of Marbella and his quote was "this is the new Spain" this is where the money is going to be. If Damac or any developer for that note can get away with ripping up a legal contract if and when they feel like there is not enough money in it for them (due to their mistake, I mean how many other companies released anything else, unless this was Damacs plan all along, to use Palm Springs as a marketing tool and then cancel when they thought right) Dubai will go belly up before it starts. Dubai is a very young market in which the investors of the world are looking at waiting for tests like this to see how the goverment deal with them.

234sale

April 1st, 2008, 12:47 PM

Dubai wont be the new Spain
No Tax
Arabic/English is the majority language
Link between East and West, Trading Hub, Financial Market, Stop Over Destination, Tallest Tower in World, Worlds Wealthiest Horse Race, ect, ect not a chav tourist resort

Dud Banger

April 1st, 2008, 02:27 PM

You are missing the point... if a developer can cancel a development without any due regard of the contract they they have entered with an investor, do you think investors are going to feel comfortable investing in a country in which you openly get ripped off. Once the word gets out people will be terrified to part with their cash. A majority of the investers in Palm Springs do not live in UAE and no doubt this is reflected throughout many developments in UAE. Loose investers like ourselves and it will end up like Spain, black money cannot support Dubai.

Sorry your the one of the previous supporters of Damac and dodgy developers. Take it you haven't lost any money yet, or you don't have any to invest.

234sale

April 1st, 2008, 02:46 PM

:lol: Support of Damac... I would never endorse this company..

In fact if you look at this thread, I have suggested that the many project get moved to the on-hold section.

If you look in the Damac thread I share a negative view of this company..

I am positive about Dubai, thats my point.. Infact Dubai Goverment is your only back up to get anything resolved

234sale

April 1st, 2008, 02:56 PM

http://damaconcovered.wordpress.com/2008/03/31/comments-on-arabainbusinesscom/

For other investors to share problems

How long till Lotus owners face the same problem is my next question?

Naz UK

April 1st, 2008, 03:13 PM

Anyone with half a brain who's looked at Damac for more than 10 seconds will know what they're all about. So by that account, they're very much a special case, and therefore cannot be used as a benchmark for Dubai's property scene.

I knew back in 2004, when I was first approached by them, what they were all about. Just because you are not living in Dubai doesn't mean its an excuse to invest unwisely. I'm not blaming Palm Springs investors, but merely saying it doesn't matter where you live, its all about trusting the information you receive from developers, your own research and a bit of luck.

234sale

April 1st, 2008, 03:15 PM

Naz UK

April 1st, 2008, 03:23 PM

Probably not, but the situation does need some government intervention before it gets out of hand.

234sale

April 1st, 2008, 04:05 PM

Probably not, but the situation does need some government intervention before it gets out of hand.

I was suprised to here it all on Dubai Eye.. I wonder if they'll invite Peter back and ask him actual questions rather than the usual pat on the back he gets.

taxi201

April 1st, 2008, 07:22 PM

It seems like Damac arent the only ones that rip people off when you read the news articles. Has anyone else won a case like this? People will definitely stop investing in Dubai if this gets out in the UK - Damac are about the only company selling Dubai flats in the UK. Need to get someone like Panorama or Watchdog involved.

Naz UK

April 1st, 2008, 07:31 PM

Nakheel have apparently denied that "they" are the reason behind Damac's cancellation of Palm Springs, and categorically state that it must be some "other" reason... in talk that Nakheel had with Damac as late as February this year, Nakheel were led to believe by Damac that all was well and the project was well underway.

Go figure.

bizzybonita

April 1st, 2008, 07:44 PM

DHLSPY

April 1st, 2008, 08:11 PM

http://damaconcovered.wordpress.com/2008/03/31/comments-on-arabainbusinesscom/

For other investors to share problems

How long till Lotus owners face the same problem is my next question?
LOTUS is already delayed and the plot is some 3-4 years away before it is handed over to Damac to start construction. The plot is currently occupied by the UN and Damac knew this when they launched! Why did Damac launch and give unrealistic completion dates when they knew well in advance that they would not get the plot! Hmmmmm very fishy and poor Lotus customers will face the same problems and more lies from Damac.

DHLSPY

April 1st, 2008, 08:17 PM

Has anyone contacted customer services recently at Damac in relation to Palm Springs? They have not got a clue and it seems like everyone is leaving. I asked to speak to Fareed Dowlatshahi there senior manager who mysteriously resigned last week and Alan Gammon previous VP a month before. Now the new head boy is a yankie asian who has no clue and his managers who remain are completely useless particularly a lady called Trish who needs to learn how to talk to customers. The whole department is confused and do not know what to tell us the customers. More lies and rubbish.

taxi201

April 1st, 2008, 10:23 PM

This is really worrying. We don't want Damac to go bust do we? We want them to build the apartments. At this rate, there won't be anyone left to run the business. We also want to make sure that when they build the thing, taht it is done properly!

Has anyone had any further communication about options?

Salty

April 1st, 2008, 11:36 PM

The truth, the whole truth, and nothing but the truth ...

"A new luxury resort development, sold-out to investors five years ago, will never be built.

Damac Properties, the biggest private developer in Dubai, has cancelled the Palm Springs project, a 25-storey residential and resort development, planned for the Jebel Ali Palm.

Investors bought the 1, 2 and 3 bedroom apartments, in the project commencing in late 2003. Damac said the property, when completed, would be managed by a five-star hotel operator.

The absolute beachfront property was to have provided sea views from all apartments. With resort facilities, and the opportunity to put units in the hotel pool, the project was so popular the original selling prices almost doubled within a year.

Damac however pushed ahead with building other projects, and announcing new ones across several Gulf countries. It remained tight-lipped about Palm Springs. Buyers received scant, and vague information about when the project was proceeding.

Now after five years Damac, having had the use of the funds from the sell-off, is now saying it won't proceed and the original investors, or those than have bought on the resale market, have a choice of getting their original price back plus 6% per annum interest, or transferring their investment to another Damac property at a 15% discount.

Some buyers however have paid huge premiums on the resale market, and to accept the Damac offer will leave them substantially out-of-pocket.

Damac says it has no choice as the Jebel Ali Palm has been reconfigured and the plot it was to build on will now not take the original development.

'Damac Properties has been advised that the master development of Palm Jebel Ali has been redesigned and the Palm Springs plot will not be delivered. Due to redevelopment of the plots, the building forming the Palm Springs development cannot be situated on the re-allocated plot and, as a result, the Palm Springs project has been cancelled,' Hussain Sajwani, the Chairman of Damac Holdings, said in a statement.

It is somewhat incredulous such an event could be taking place five years after plans were put in place, and the property was marketed.

A more likely event is that construction costs have sky-rocketed since 2003, and the project based on the original prices that Damac contracted for, are now unviable.

The news of the Palm Springs demise comes hot on the heels of the failure of the Alareifi tower at Dubai Marina.

As we reported Sunday, construction of the luxury 35 storey residential Areifi Marina tower at the prestigious Dubai Marina has been halted.

Major Saudi Arabian developer, Alareifi, pulled the plug on the 379-apartment project midway through construction. Investors in the property are being told Alareifi cannot complete the project.

The Alareifi Marina is a unique development in Dubai in that whilst with other projects, off-the-plan buyers pay instalments in accordance with the staging of construction, Alareifi buyers paid the full price of the apartments upfront. In return for this they received discounted prices.

Dubai authorities in recent months have stepped in to regulate off-the-plan instalment payments by insisting developers open escrow accounts and deposit all funds into those accounts. The developers are then only permitted to draw on those funds for authorised construction works.

The Alareifi sales however, marketed through Khalid S. Al-areifi & Partner Real Estate, and the Palm Springs project, were all completed prior to this new regulation.

On Monday stocks on the Dubai stock exchange fell almost 3%, their biggest one-day fall in two months. The decline was led by the city's biggest property developer, Emaar Properties, which shed 3.95%."

:ohno:

Source:

http://story.malaysiasun.com/index.php/ct/9/cid/3a8a80d6f705f8cc/id/343073/cs/1/

Dubai_Steve

April 1st, 2008, 11:50 PM

Potential real estate investors in Dubai have been scared off by news Damac Properties has axed a development on the Palm Jebel Ali, the latest ArabianBusiness.com spot poll has revealed.

http://www.arabianbusiness.com/images/magazines/arabianbusiness.com/2008_04_01/Palm-Springs_thumb.jpg

PROJECT AXED: Two-thirds of respondents said news of the Palm Springs cancellation had made them think twice about investing in Dubai.

The Dubai-based developer cancelled its the much-delayed Palm Springs project, which is yet to be built, five years after launch, citing "redevelopment of the plots".

Investors are now threatening to take Damac to court if it does not reverse its decision and continue with construction.

Damac has offered compensation for the cancellation, but buyers are facing average losses on their investment ranging between 300,000-600,000 dirhams ($81,000-$163,000), one of the project's investors has told ArabianBusiness.com.

The news seems to have reduced confidence in the market, according to the poll.

Two-thirds of respondents said news of the cancellation had made them think twice about buying property off-plan, stating that it had made them "very cautious about the Dubai property market".

Not one respondent said they would still buy off-plan real estate without first checking out the developer, while 33% said they might buy before construction has begun, but that it would depends on the developer and the kind of reputation it had.

Dubai has a massive secondary market for off-plan real estate, with units passing through numerous hands before a development is finally built as investors capitalise on soaring prices in the sector to make quick profits without putting up huge amounts of capital.

Many investors in Palm Springs bought units on the secondary market, meaning from an investor and not directly from the developer, paying up to a 50% premium on the original purchase price.

As the Palm Springs has yet to be built buyers will not have paid the full original purchase price, but will have made downpayments as agreed milestones were reached.

Secondary market buyers will have paid the seller the premium as well as however much of the original purchase price the seller had paid to Damac.

Damac has offered to refund the amount of money investors have put down on their property so far, plus 6% annual interest calculated from the date of each instalment payment, or the option of transferring their investment to another project with a 15% discount off current prices.

Damac said it was not the developer's contractual obligation to refund money that was paid on resales, according to an investor.

tiny

April 2nd, 2008, 07:07 AM

Reason for axing Palm Springs questioned
by Amy Glass and Dylan Bowman on Tuesday, 01 April 2008
PROJECT SAGA: Nakheel has questioned Damac's reason for cancelling its Palm Springs project.The master developer of the Palm Jebel Ali has raised questions over Damac Properties' explanation for axing its Palm Springs project on the manmade island.

Dubai-based Damac cancelled the much-delayed project late last month due to "redevelopment of the plots", stating that the development "cannot be situated on the re-allocated plot".

Nakheel, which is building three palm-shaped islands off Dubai's coast, said on Tuesday it had informed investors of changes to the Palm Jebel Ali masterplan over 10 months ago.

Nakheel also said it had "positive" correspondence with Damac as recently as February, in which the developer gave no indication that it would not be going ahead with the project.

“We are very surprised by the statements made by Damac suggesting that the reasons for the recent cancellation of its Palm Springs project are due to revisions in The Palm Jebel Ali masterplan...," Marwan Al Qamzi, Nakheel managing director of the Palm Jebel Ali, said in a statement.

“Our last interaction with Damac took place in February of this year and was one of positive engagement, which left us with the firm view that Damac was proceeding with the project..."

Al Qamzi said the reason for the scrapping the 25-storey beachfront development had to be related to something other than the re-allocation of the plots.

“From Nakheel’s perspective, Damac’s cancellation of the Palm Springs project must be linked to other development issues specifically related to the project,” Al Qamzi said.

Damac was not immediately available for comment when contacted by ArabianBusiness.com.

Nakheel's remarks will only further infuriate angry investors, who are facing millions of dirhams in losses, one buyer has told ArabianBusiness.com.

Many investors have rejected the compensation being offered by Damac, and are threatening to take the developer to court if it does not reverse its decision and continue with construction.

Nearly 60 UK-based investors in the project have formed a group to take on Damac, giving the developer until April 11 to change its mind or face legal action.

Damac has offered to refund the amount of money investors have put down on their property so far, plus 6% annual interest calculated from the date of each instalment payment, or the option of transferring their investment to another project with a 15% discount.

Many buyers have snapped up Palm Springs units on the secondary market, meaning from an investor and not directly from the developer, paying up to a 50% premium on the original purchase price.

As Palm Spring has yet to be built buyers will not have paid the full original purchase price, but would have made downpayments as agreed milestones were reached.

Secondary market buyers would have paid the seller the premium as well as however much of the original purchase price the seller had paid to Damac.

Damac said it was not the developer's contractual obligation to refund money that was paid on resales, according to an investor.

The saga seems to have reduced confidence in the Dubai property market, according to the latest ArabianBusiness.com spot poll.

Two-thirds of respondents said news of the cancellation had made them think twice about buying property off-plan, stating that it had made them "very cautious about the Dubai property market".

Dubai has a massive secondary market for off-plan real estate, with units passing through numerous hands before a development is finally built as investors capitalise on soaring prices in the sector to make quick profits without putting up huge amounts of capital.

------------------------------------

234sale

April 2nd, 2008, 08:16 AM

Lotus would have to be redesign anyway as Power Capacities have been reduced. Every devloper is getting around a quarter less supply that they expected. I have mentioned this before including my own research..
On top of that the UN issue wont go away..
They should cancel it now before any more by resale thing its going to be finished.

You will see this year

Land Price will Half from current level,, Construction Price will Double from current level.

Property Values of units that can be completed will increase.
Property values of developments that cant complete are in my view worth only the orginial contract value.

Anyone who sold units without a building permit are my biggest concern.

This has happened before in many markets,, Developers do go Bankrupt

malec

April 2nd, 2008, 12:37 PM

If construction prices double from the level they are at now how will anyone build anything?

234sale

April 2nd, 2008, 02:46 PM

The cost are increasing as your going to have to build a enery efficent building in pretty much every development..

One of my friends who has land in JVS has said the want every building to be gold - platinum rated....

I'm sure you agree adding all these features adds lots of costs

abf

April 2nd, 2008, 02:58 PM

If construction prices double from the level they are at now how will anyone build anything?

It will be unaffordable and hence the market in disarray
My concern is the land registry on current prices rather than purchase prices will have a knock on effect on property

Dubai_Steve

April 3rd, 2008, 10:02 PM

http://img228.imageshack.us/img228/7653/damacfm9.jpg (http://imageshack.us)

patdubai

April 3rd, 2008, 10:33 PM

I T V

Holiday Homes from Hell

E-Mail Duty Officer @ I T V . com

Lets tell them about DAMAC DO THE DIRTY IN DUBAI

Dubai_Steve

April 4th, 2008, 02:36 AM

Damac move surprises Nakheel

By Suzanne Fenton, Staff Reporter
Published: April 04, 2008, 00:44

Dubai: Uncertainty surrounds Damac's cancellation of its Palm Springs project as master-developer Nakheel, which is building the Palm Jebel Ali where the project was initially planned, saying it was not informed of Damac's decision to cancel.

Marwan Al Qamzi, managing director of the Palm Jebel Ali, said Damac's decision came as a surprise and Nakheel learned of it through the media.

"We are very surprised by the statements made by Damac suggesting that the reasons for the cancellation of its Palm Springs project are due to revisions in the Palm Jebel Ali masterplan," said Al Qamzi. "The Palm Springs plot was relocated to a prime position due to widening of the crescent," he said.

"Our last interaction with Damac took place in February this year and was one of positive engagement. It left us with the firm view that Damac was proceeding with the project. We are extremely disappointed by this recent development," said Al Qamzi.

Al Qamzi said that the revised masterplan allowed for significant improvements in the design.

Nakheel has sold other plots of land on the crescent of Palm Jebel Ali to Damac. Al Qamzi said it was now the responsibility of Damac to ensure the delivery of any units it has sold within these plots to customers.

Revisions to the Palm Jebel Ali masterplan were communicated to investors more than ten months ago.

"From Nakheel's perspective, Damac's cancellation of the Palm Springs project must be linked to other development issues specifically related to the project," said Al Qamzi.

Damac was not unavailable for comment.

taxi201

April 4th, 2008, 09:05 AM

What di you think this means? Do you thingk that NAkeel can force Damac to build the development? They must be really p....d to have gone public on it like that. I thought Damac were in bed with Nakeel??

DiamondGeezer

April 4th, 2008, 09:26 PM

Well nakheel obviously have had enough now, Damac were trying to blame them even though it is clear Damac are just trying to con investors.

nisha

April 5th, 2008, 06:16 AM

Damac

Evil thieving b@5t@rd5....

This along with other spectacular past failures had the potential to ruin Dubai's reputation - but thanks to the power of media control.....the picture will continue to be portrayed hunky-dory rosy pink......

DiamondGeezer

April 5th, 2008, 09:30 AM

It seems that nakheel are mighty pissed off,

But this is nothing, people are just waiting on what the response is going to be and then Damac will know what negative pulicity is!

Evil thieving b@5t@rd5....

This along with other spectacular past failures had the potential to ruin Dubai's reputation - but thanks to the power of media control.....the picture will continue to be portrayed hunky-dory rosy pink......

nisha

April 5th, 2008, 11:00 AM

It seems that nakheel are mighty pissed off,

But this is nothing, people are just waiting on what the response is going to be and then Damac will know what negative pulicity is!

Without Media support - at most there will an article on lawsuits filed etc - but commentary/analysis and the stuff that would do real damage will be missing in the local media. What should be done is international coverage and negative publicity for DAMAC.

boston101

April 5th, 2008, 11:29 AM

http://www.arabianbusiness.com/515467-palm-spring-collapse-shakes-investor-confidence?start=0

Palm Spring collapse shakes investor confidence
by Conrad Egbert on Saturday, 05 April 2008
zoomWith investors threatening legal action over Damac's cancelled Palm Springs project, Conrad Egbert takes a looks at how the outrage is threatening investor confidence.

The cancellation of Damac's Palm Springs has shaken confidence among some investors in the Gulf real estate market.

And it has also drawn attention to how tight the market is becoming in the region.

An incident in London last month highlighted the extent to which property investors are losing faith in the market.

Angry investors in Damac's axed Palm Springs project stormed the company's launch of Jumeirah Village South at the Carlton Hotel in Knightsbridge, circulating flyers to potential investors with negative publicity on the Palm Springs story.

An excerpt from the flyer obtained by Construction Week read: "We, the Palm Springs Investors Group, will be taking Damac to court in order so that Damac either reverses its decision and proceeds with constructing Palm Springs on Palm Jebel Ali, or it provides a like-for-like apartment at the same cost, terms and conditions on a new Damac development on Palm Jebel Ali, or it provides financial compensation at current market rates for Dubai Waterfront/Palm Jebel Ali.

"We attended similar evenings to this launch and were duped into buying from Damac. We trusted and believed in Damac but strongly warn that you do not make the same mistake as us."

Damac has said it cannot build the project on the plot Nakheel reallocated on Palm Jebel Ali and has instead written it off as a ‘force majeure'.

According to UK investor Robert Miller, who bought a unit in Palm Springs in 2003, investors could stand to lose an estimated US $296,000 (AED1.09 million) because of the cancellation.

Last week, a letter from The Palm Springs Investors Group, which is made up of more than 50 members, was sent to Damac, demanding that the axed property be constructed on the reallocated plot or else the company would face legal action.

Nakheel has also been pulled into the drama with some investors suggesting that if the reallocated land is not good enough for the construction of Palm Springs, and the ‘force majeure' clause is accepted, then Nakheel should arrange compensation for them.

But Nakheel has expressed surprise over Damac's stance, with the company's Palm Jebel Ali managing director, Marwan Al Qamzi, saying:

"Our last interaction with Damac took place in February of this year and was one of positive engagement, which left us with the firm view that Damac was proceeding with the project. We are extremely disappointed to have heard the news of the cancellation through the media.

The 25-storey Palm Springs project had originally been planned for completion by late 2007.

Homebuyers were already believed to be angry over repeated delays, contractual issues and complaints of poor customer service by Damac.

"It's quite clear that this is just a business move by Damac," said Miller.

"They've realised that the land they sold us five years ago will now go for almost three times the price, and so they've decided to pay us back our money and resell it at a much higher rate.

"In other words, we just lent them our money for them to build a building for someone else. This is going to be very damaging for the Dubai property market and the strongest publicity is always by ‘word of mouth'; they should realise that.

Miller added that in September 2006, Damac was offering 10% interest on money invested in an attempt to get investors to pull out of the project.

"So this hasn't just happened. It's been thought out and has been planned. And if there is planning involved, then how can it be a ‘force majeure' under any circumstances?

Niall McLoughlin, senior vice president - corporate communications, Damac, said:

"We understand that this is a serious and unfortunate situation, but one which is completely outside Damac Properties' control.

Dubai-based lawyer, Edward Sunna, head of construction and engineering, Al Tamimi and Company, who has been approached by the investors group to represent them, agreed that a ‘force majeure' is mainly called for in the event of a natural disaster like an earthquake, hurricane or similar forces of nature.

"I'm not sure what Damac intends to do but calling for a ‘force majeure' in this situation is a little strange. I don't see them getting very far with this," he said.

Damac declined to make any further comment on the story.

fairouza

April 6th, 2008, 03:13 AM

Damac Victims are not alone
Posted by Falcon, Munich, Germany on 1 April 2008 at 03:00 UAE time

original published: Arabian Business/Comments
http://www.arabianbusiness.com/514985-legal-action-threatened-after-damac-axes-project

The victims of Damac are not alone. They bring to daylight what happens day by day in Dubai.

We bought 2005 Falcon Tower JLT directly at Nakheel.
We paid 45% until June 2006. In August 2006 we got a letter from DMCCA. Falcon will not be built - a decision of Nakheel.

But we were told from DMCCA the Falcon Tower would be transfered to AL Fajer Properties, nothing would change for the customers.

Today, 2008, we are getting letters from the lawyer of Al Fajer Properties trying to cancel every right to our purchased apartment.

We have got our own lawyer - but they have refused to correspondence with him.

The case is with RERA - but until today without any response

www.dubai7stars.blogspot.com

Hanna

April 6th, 2008, 11:51 AM

Hi All

I wonder what the woman Diane Ward is going to do with her competion win
'bit of con the Times have bought in to' ! :cheers:

Another thing she was getting a free holiday every year till Palm Springs was built I hope she got that in writing she is onto a lot of free holidays I hope she has got a good lawyer !

'They will be flown out for a free holiday every year until the property is finished'.:banana:

Its time they did some more research into this Company and run a big expose
of Damac don't you think,before it happens again and again.

Sunday Times reader Diane Ward of Nottingham has won an apartment in Dubai after her entry to the competition run by this newspaper was picked from more than 38,000 competitors.

Diane, 35, a logistics manager, will be the owner of a two-bedroom luxury flat in Palm Springs, part of Palm Jebel Ali, the world’s largest man-made island, where amenities will include marinas, restaurants and cinemas. Palm Springs, a development by DAMAC Properties, is a £50m waterside scheme with apartments and penthouses.

As the apartment is not yet built — it will be finished in 2007 — she will be able to choose her new holiday home from floor plans. It will be a fourth-floor, furnished property with panoramic views. Each apartment opens onto a large, glass-balustraded balcony and has a fully-equipped kitchen and en-suite bathrooms.

Diane, her boyfriend Pat Gamble and their six-year-old daughter Dana are flying to Dubai next month for a week’s holiday to get a first look at the place. 'They will be flown out for a free holiday every year until the property is finished'.

Hanna

April 6th, 2008, 12:05 PM

From The Times
October 31, 2007

I would like to double check on that claim !

'Damac has 79 housing blocks under development and the company will have handed more than 10 per cent of its presold properties by the end of the year'.

Towers reach for the sky on a daily basis as Dubai booms
Vertically ambitious developers sell space before construction as the emirate acquires a look that Manhattan would admire
James Rossiter, Property Correspondent

Last Friday the 155th floor was completed on Burj Dubai. By yesterday the 156th floor was finished on a building that, at 585.7m (1,922ft) and still growing, is already the world’s tallest tower block.

By the time that Emaar, the largest property company in Dubai, completes the Burj (the Tower), it will rise to 164 floors, to be capped by a spire that will add a few more precious metres. The developers are said to be able to add on more floors if they wish at a later date to ensure that the Burj can see off any competition that might threaten its status as the world’s tallest building.

Such figures set pulses racing in Dubai, a city that resembles a cross between Vancouver and Manhattan, with a smack of the garish self-confidence that hitherto only Las Vegas could muster. Local master planners privately refer to developers’ love of skyscrapers as “architorture”.

It is not only the property developers who are in thrall to what locals regard as an obsession with everything ending in “est”: biggest, tallest, best. The emirate’s rapidly growing population � 30,000 people arrive each month � has bought into a vision of world domination handed down from Sheikh Mohammed bin Rashid al-Maktoum to the people he governs as absolute ruler.
Related Links

* Emirates get Western bugbear

* Emirates set for $20bn market flotation

* Monday manifesto: Sheikh Ahmed bin Saeed al-Maktoum

People in Dubai who can spare a few thousand dirhams are playing the property game. If they are not working directly in real estate � and that includes a considerable proportion of the population � most are in property investment speculation, buying half a dozen flats at a time off-plan and holding them until completion or “flipping” them � selling the rights to the homes for a profit within a year.

Prices of Dubai apartments have soared 125 per cent over the past year around the Burj, catalysed by new laws that came into force only at the start of this year allowing, for the first time, foreign ownership of residential property. House-price inflation in other parts of the city has risen by between 20 per cent and 100 per cent over the past year, mirroring similar rates of annual inflation every year since the turn of the millennium.

Dozens of high-rise luxury apartment blocks litter Dubai, all about 97 per cent let. Scores of similar projects are under way, dominated by the big players, such as Emaar, the largest quoted developer, Nakheel and Dubai Properties, which are controlled by the State, and Damac Holding, one of the emirate’s largest privately run residential property developers and owned by Hussain Sajwani. Damac has 79 housing blocks under development and the company will have handed more than 10 per cent of its presold properties by the end of the year.

By the time that Damac lays the first brick on a tower block, it will have presold about 80 per cent of the units with cash in the bank � buyers pay by instalment � covering about 40 per cent of the built value of the entire site. That means that Damac has broken even on its tower blocks before it has started construction.

“In just under five years we have moved 11,000 units to 116 nationalities,” Peter Riddich, the chief executive of Damac, said. British citizens account for about 30 per cent of Damac’s buyers, followed by nearly as many Iranian purchasers, with the balance dominated by a mix from India, Pakistan, other Gulf states, Russia and other republics of the former Soviet Union.

Sheikh Mohammed, the ruler of Dubai and Vice-President and Prime Minister of the United Arab Emirates, has a vision to transform Dubai into a huge financial trading centre. The idea is to attract massive amounts of foreign workers and capital to an emirate that did not have the natural resources of Abu Dhabi, its larger, oil-rich neighbour. One of the key methods of his strategy has been to turn Dubai from a sleepy town into a huge building zone, which is starting to rival Abu Dhabi, the capital of the UAE, in population.

Blair Hagkull, managing director of Jones Lang LaSalle, the property agency, who is based in Dubai said: “We are halfway through a 30-year cycle and, at the end of it, Dubai will be where other cities took 100 years.” :cheers:

fairouza

April 6th, 2008, 07:03 PM

original published
http://www.arabianbusiness.com/515742-damac-hints-at-backtrack-on-palm-springs-axe

by Dylan Bowman on Sunday, 06 April 2008

Under fire developer Damac Properties on Sunday showed the first signs it may backtrack on its decision to axe the Palm Springs project on the Palm Jebel Ali following a backlash from investors around the world.

Investors have said they stand to lose million of dirhams after the Dubai-based developer cancelled the 25-storey beachfront development last month, offering compensation well below current market value.

The saga has been widely reported in the international media, creating bad publicity for Damac in key markets it is looking to attract investment from, such as the UK.
"We have had a number of representations from investors on the decision to cancel the Palm Springs project," Niall McLoughlin, senior vice president of corporate communications, said in a statement emailed to ArabianBusiness.com.

"We are looking at various scenarios and will make a statement in due course."

Damac said last month the cancellation of the project five years after launch was due to "redevelopment of the plots", stating that the development "cannot be situated on the re-allocated plot".

However, this explanation was brought into question last week when Palm Jebel Ali master developer Nakheel said it had informed investors of changes to the masterplan over 10 months ago.

Nakheel also said it had "positive" correspondence with Damac as recently as February, in which the developer gave no indication that it would not be going ahead with the project.

A group of more than 60 UK-based investors in the project are threatening to take Damac to court unless the developer reverses its decision and continues with construction.

The group, which last month stormed the London launch of Damac's Jumeirah Village South project, has given the developer until April 11 to change its mind or face legal action.

The saga seems to have reduced confidence in the Dubai property market, according to a recent ArabianBusiness.com spot poll.

Two-thirds of respondents said news of the cancellation had made them think twice about buying property off-plan, stating that it had made them "very cautious about the Dubai property market".

Dubai has a massive secondary market for off-plan real estate, with units passing through numerous hands before a development is finally built as investors capitalise on soaring prices in the sector to make quick profits without putting up huge amounts of capital.

:ohno::cheers:

Hanna

April 6th, 2008, 07:13 PM

Mistermark

April 6th, 2008, 08:14 PM

I've been following the stories about Palm Springs, Lake Terrace (two years late - including my apartment!) and other Damac backsliding, and have decided to do something about it: I've launched an online forum, Dubai Property Claims, to bring together wronged investors and facilitate them launching group legal actions. There's a link here: http://www.dubaipropertyclaims.com.

I hope the moderators will excuse me linking to a third-party site on the grounds that discussion of investment-related matters are discouraged on this site.

Anyone who wishes to pursue a claim against Damac or any other Dubai developer who has left them out of pocket is welcome on my site. Please tell any other Dubai property investors about it, whether by email, PM or posts on other forums.

I've emailed the founder of the blog that has been used so far to bring together Palm Springs investors to see whether they would prefer me to link to their site (which I'm doing currently) or whether they would rather move the campaign to my site. If they want to do the latter, I'd be happy to accommodate them.

PS Investor

April 7th, 2008, 10:56 AM

Hi, This is my first message on this site. I have only just come to know about the cancellation of the project recently. I was an original investor in December 2003 and still hold the unit. I am resident in Dubai. Please can someone let me know what the latest situation is? What is the action group doing and I am willing to join them

Hanna

April 7th, 2008, 11:35 AM

Hanna

April 7th, 2008, 11:44 AM

Hi

Comment

http://dubai7stars.blogspot.com/search/label/Damac%20Dubai

You’d better know something. Mr. RADDISH is the planner. He is very strategist and cunning. I have some news from an anonymous source that they have prepared letters to those who accepted their offers and those who didnt reply before their deadline, requesting their banking details to transfer their sum on the basis of %6+ per annum.
They are surely treating differently with groups.
The more wisely you behave, the better result you get. The next offer to the more provident ones would be %20 per annum and if you do not accept it, they will finally offer you %50 p/a but take note that they are refunding it on your %25 basic instls regardless of market price of PJA or WF projects which are now starting from AED 3000 p/sqf. Therefore I emphatically recommend you to insist on the hand-over of the project. Then, if DAMAC intends to resell it at those high-above-market prices, they will keep you in the list of the owners with applying some new conditions which wouldnt be that harsh. This is their policy: they convict you to death, to make you happy with life-imprisonment. Mr.SAWINGI has a very stubborn charactor and you will certainly need to get HH.Sheikh Mohamad involved to put this man down.
Regards. :cheers:

PS Investor

April 7th, 2008, 02:54 PM

Hi
I have now sent an email to palmspringsgroup@gmail.com to register my interest in fighting this. I am nore than happy to joint the Palm Springs Investors group.

In 2003 when I made the decision to purchase real estate in Dubai we were brave investors. Many people back then advised against it, giving reasons such as the lack of supporting law. Spending GBP 200,000 on a property was like going to the car show room and buying a car. No legal advice. We took a risk, but believed in the future of Dubai and the vision of the Sheikh. The decision of us investors back then was visionary in itself. We took the risk and it paid off, or at least until now. We deserve the capital appreciation of this project and its worth fighting for. Put it this way I could buy a Bently with the capital appreciation foregone if Damac have thier way. It's unimaginable the amount of hours i would need to work to get back what i have lost in opportunity. How can we sit back and let Damac win! No way

Hanna

April 7th, 2008, 03:04 PM

fairouza

April 7th, 2008, 09:25 PM

http://damaconcovered.wordpress.com/The Palms Springs Group Resolute in its Stance
7 April 2008 at 6:27 pm | In Damac | No Comments

If Damac was hoping that delaying their response to investors demand for justice would cause the Palm Spring Investors Group to fragment, then the news for Damac is not very good. Inside sources report that the Group has, if anything, become even more united and resolute in their aim to ensure Damac does not short-change their members. It is clear that the Group is not ready to accept anything less than that Damac

reverse the decision to cancel Palm Springs and proceed with construction of the project, or

provide a like-for-like apartment at same cost and terms and conditions on a new Damac development at Palm Jebel Ali, or

provide financial compensation at current market rates for Dubai Waterfront/Palm Jebel Ali

The overwhelming majority of the Palm Springs Investors Group is of the opinion that Damac is procrastinating unnecessarily, and the legal action should proceed immediately after the deadline of 11 April 2008 as planned. One of the Group’s co-ordinators said “Funding to commence legal proceedings has been place for some time, and we do not intend to let up with our efforts to seek a fair and proper outcome using all means at our disposal.”

Barring a decisive intervention by RERA or Sheikh Mohammed, the campaign by The Palm Springs is set to intensify if Damac continues to remain silent - media reports saying that “Damac was not available for comment” will simply no longer do. We can only repeat that resolving this crisis is in the interest of all concerned, investors, Damac, Dubai real estate, and the Dubai authorities.

http://www.dubai7stars.blogspot.com

Dubai_Steve

April 8th, 2008, 03:04 AM

Who in their right mind will buy anything from Damac in the future if they do not act positively. I certainly will not. Nobody will trust Damac with their money any more.

ardi

April 8th, 2008, 11:06 AM

Hanna

April 8th, 2008, 01:03 PM

There is something which really bother me, and that is, evrytime DAMAC luanchs new projects its going to be sold out within few days. What the fuck all these investors are thinking???!!!

Another thing, how long they can countinue like this by spending people's money in new plots and luanchig new projects? How they can now builds projects which they have sold couple of years back on current constrution cost?

Hi ardi

You are 100% right I have been asking the same question for years now
its just not feasable,unless they have not sold that many units in all there projects which gives them leeway to up the prices which has happened with
Ocean Heights they are still selling units there. :cheers:

Mistermark

April 8th, 2008, 06:18 PM

Here's what I think is happening.

The population of Dubai is growing fast. This means heavy demand for homes to rent or buy.

The developers build more slowly than they said they would. This may be due to imcompetence, problems getting labour/materials or a conspiracy to restrict the supply of housing coming onto the market, I don't know.

In any case, as long as insufficient actual completed units come onto the market, they get rented right away at good yields or can be sold on for a healthy profit.

For as long as that remains the case, investors will believe the Dubai market is a good one and reserve units, so it looks like the new projects are selling well.

However, unless the developers start to get their fingers out and deliver those properties, the incoming workers will go elsewhere because their generous tax-free incomes are consumed by exhorbitant rents and investors will desert the property market because they can't actually be sure of getting their properties delivered, on time and to spec.

The Dubai government has tried the sticking plaster of capping rents but the real solution is to improve legislation and supervision of developers. Palm Springs is possibly the worst case, alongside The Light House, but actually, how many projects can we name in Dubai that have been delivered on time and as specified. Not many! Which is why action is needed - and fast!

PS Investor

April 9th, 2008, 07:25 PM

Hi All,
I understand that there is some breaking news on Palm Springs. Can anyone shed some light on this?

Salameer

April 9th, 2008, 07:35 PM

Hope! (http://v4.test.arabianbusiness.com/515742-damac-hints-at-backtrack-on-palm-springs-axe?ln=en)

Wannaberich

April 9th, 2008, 08:14 PM

DUBAI CHRONICLE:
The construction of Palm Spring Jebel Ali to begin soon

On Monday Dubai Chronicle have received information from the head office of DAMAC Properties regarding the construction of the much discussed lately cancellation of the Palm Spring Jebel Ali.

According to the source, who have chosen to remain anonymous, the reputation of the developer outweighed the prospective losses.
Construction of the Palm Spring Jebel Ali will begin as soon as possible.

turbo

April 10th, 2008, 03:00 AM

Palm Springs Dispute on Course to Being Resolved (http://damaconcovered.wordpress.com/)

Bekhit

April 10th, 2008, 07:38 AM

That looks really promising! way to go guys! :cheers:

DUBAI INVESTOR

April 10th, 2008, 09:20 AM

A bit of topic but still....

Damac's Business Bay tower back on track
By Suzanne Fenton, Staff Reporter
Published: April 10, 2008, 00:28

Dubai: Property developer Damac, which had tried to cancel Haz Tower in Business Bay, yesterday said that the project is back on track following complaints by investors who had pumped in Dh60 million since July 2007.

Around 10 exasperated investors yesterday met officials at the Land Department to complain against the company.

However, Niall McLoughlin, senior vice-president of corporate communications at Damac, said that the Haz Tower is "definitely going ahead".

The issue crops up just a week after Damac came under fire for cancelling the Palm Springs project on the Palm Jebel Ali.

The Haz Tower was launched July 8, 2007, with a project value of around Dh240 million. The tower is now worth an estimated Dh660 million.

Damac, the largest private sector developer in the UAE, has launched 80 projects but handed over only two so far.

patdubai

April 10th, 2008, 01:54 PM

Hi

As an investor in Palm Springs we have been told it is back on course to be built,
however their will be changes.

Well apart from the plot being placed elswhere on jebel ali why should we except
any other changes to maybe deseign or size,after all Nakheel have said that they

HAVE ALLOCATED DAMAC A PRIME POSITION FOR PALM SPRINGS.

So that tells us that Damac do have a plot suitable for the original building to be
placed on,so why should we except any other changes.

After this shamefull act of deceit from Damac i now feel they cannot be trusted and
I hope they are not going to try and pull another fast one by saying, Which they
already have in the original letter of cancellation, that the plot allocated is to small
for the original building when we now know this is just not true.

That PRIME POSITION plot belongs to Palm Springs Investors as does the original style
building,not lets say an unatractive CONcrete block on a matchbox size plot.

Iwould not normally say these things about ANYBODY but what i have read and learnt
over the last two weeks anything is possible.

I do hope i end up eating my own words??? We shall see.

Hanna

April 10th, 2008, 02:42 PM

jeetha

April 10th, 2008, 02:45 PM

Damac, the largest private sector developer in the UAE, has launched 80 projects but handed over only 02 so far.

234sale

April 10th, 2008, 03:03 PM

Fairway Heights
Suburbia
Tuscan 2
Amber Residence
Madison Residences
Westside @ Lincoln Park
Damac Heights
Burjside Boulevard
Lincoln Park
Lakeside
La Residence2 at Lotus
La Residence at Lotus
Тuscan Residence
The Waves
Emirates Gardens
Flamingo Heights
Lake Terrace
Emirates Gardens 2
Park Towers
Ocean Heights
Lagovista
Lagovista 2
The Crescent
Теrrа Del Sol 1 and 2
Marina Terrace
Palm Terrace
Fairway Heights
Haz Tower
Water's Edge
Lincoln Park
The Corner
Business Heights
Business Central
Business Gate
Capital Bay
Park Central
Executive Bay
Executive Heights
XL Tower
Smart Heights
Business Tower
Park Towers

These are Damac Dubai Developments

Hanna

April 10th, 2008, 03:07 PM

OPPE

April 10th, 2008, 04:25 PM

It’s just incredible how a developer like Damac Properties would do something like that! If it were a small developer you might understand their desire to make the most profit out of a single project, but a company like Damac with so many other projects at stake should know better than to rock their own boat in this way!

Let’s hope that Damac sees sense on this one.

We’re watching this particularly closely as Damac is one of our advertisers and we are keeping our readers informed with our latest blog post (http://www.offplanpropertyexchange.com/off-plan-property-investment/blog/2008/04/10/palm-springs-is-a-go-damac-reportedly-tells-investors/).

We also invite you to comment on the blog post or share your thoughts on this matter with our readers in our budding property forum under the Dubai section (http://www.offplanpropertyexchange.com/forum/dubai-property/)

All the best, and here's to a quick resolution of this nightmare.

Andrew
www.offplanpropertyexchange.com

fairouza

April 10th, 2008, 08:00 PM

Damac, said:

"We understand that this is a serious and unfortunate situation, but one which is completely outside Damac Properties' control.

Dubai-based lawyer, Edward Sunna, head of construction and engineering, Al Tamimi and Company, who has been approached by the investors group to represent them, agreed that a ‘force majeure' is mainly called for in the event of a natural disaster like an earthquake, hurricane or similar forces of nature."I'm not sure what Damac intends to do but calling for a ‘force majeure' in this situation is a little strange. I don't see them getting very far with this," he said.Damac declined to make any further comment on the story

Force majeure are almost always included in sales and purchase agreements Dubai developers.

For example Terms and Conditions Nakheel ( a wide definition of Force Majeure)

17. FORCE MAJEURE out of a contract from Nakheel

“Event of Force Majeure” means an act of God including but not limited to fire, flood, earthquake, windstorm or
other natural disaster; act of any sovereign including but not limited to war, invasion, act of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, nationalisation, requisition, destruction or damage to property by or under the order of any government or public or local authority or imposition of government sanction embargo or similar action;labour dispute including but not limited to strike, lockout or boycott; interruption or failure of utility service including but not limited to electric power, gas, water or telephone service; failure of the transportation of any personnel, equipment, machinery or material required by the Seller for completion of the Building; delay for any reason by any contractor or subcontractor in carrying out their works or any matter; or cause beyond the control of the Seller.
Should an Event of Force Majeure have occurred that has delayed the Completion Date, the Seller shall upon becoming aware of such delay promptly notify the Buyer and inform the Buyer of the revised Completion Date or an estimate of the duration of the delay, followed by a revised Completion Date when same can be determined.

Should an Event of Force Majeure delay the Completion Date by a period of in excess of one (1) year the Buyer may elect to terminate this Agreement by notice to the Seller and the Seller shall refund all monies paid by the Buyer. (means=without any compensation !!!)
____________________________________________

or see "Force Majeure" in a full contract Nakheel:
http://residents.internationalcity.ae/images/download_attachmenta550.asp?ArticleCode=ART17460&AttachmentID=ART00004

www.dubai7stars.blogspot.com

GoDubai!

April 11th, 2008, 06:47 AM

Is a Dubai thing, a property thing or is it a common phenomenon in business everywhere? There is a huge mismatch among the company's separate divisions. In the case of Damac, the marketers promise the sky, the sales team sell it aggressively, but the project management team, builders, etc. just aren't there yet--not anywhere close to what the marketers and sales team are promising. It seems like a backwards and potentially disastrous business model to me. The project management team ought to be the ones setting the pace with the marketing and sales team following. If the product ain't there yet, then don't market and sell it!

fairouza

April 11th, 2008, 09:52 PM

http://bp2.blogger.com/_oqAtNoYqJ5g/R_FxvPmDthI/AAAAAAAAAJU/rIQakN-DboA/s1600-h/letterDMCCA.jpg

fairouza

April 11th, 2008, 09:54 PM

http://www.skyscrapercity.com/showthread.php?t=138300&page=3

:bash:

fairouza

April 11th, 2008, 09:58 PM

http://www.skyscrapercity.com/showthread.php?t=138300&page=3

:bash:

Julito-dubai

April 12th, 2008, 02:00 AM

move it back to "approved" as it will be built

patdubai

April 13th, 2008, 09:54 AM

Hi all

Just a couple of words I,d like to say about Damac,s decision to offer something
in lieu of Palm Springs.

Firstly if the replacement appartments are not as attractive or smaller than
original,there will be a claim issue with regards to less desirability which would
mean adjusting the original price downwards at 2003 prices.
Also compensating us for a smaller appreciaction value in the future.

Also if Damac do have thoughts of offering smaller appartments they would of
course have to compensate us to the tune of 4000/5000 dirhams todays price
not 2003 price,for every sq ft they wish to take from us.

Now if I have done my sums right,and please correct me if I,m wrong,but if
they reduce each appartment by say 20 per cent then at todays sq ft price
the amount of compensation owed to us would literally pay for the appartment,
Damac would have to hand them over for nothing.

So looking at it from Damac,s point of view this would not make commercial sence
we can now see why they tried to cancel,

So come on Damac deliver to us what we bought and don,t forget about the

PRIME POSITION PLOT NOTHING LESS WILL DO

Pat

Hanna

April 13th, 2008, 02:35 PM

fairouza

April 13th, 2008, 05:56 PM

High riser Damac Holding Chairman Hussain Sajwani:badnews:

By Shalaka Paradkar, Staff Writer
Published: July 20, 2007, 00:12

Damac Holding chairman Hussain Sajwani started work at his father's shop in the Deira Souq at the age of 3. The harsh experience drove him away from the world of business until he eventually realised that the entrepreneurial spirit was in his blood. The head of the largest private property developer in the UAE tells Shalaka Paradkar that you only really learn through failure

It's hard to believe that Hussain Ali Habib Sajwani once hated the idea of being a businessman. After all, he was the school boy entrepreneur who made a princely profit of Dh2 for every 24 chocolate bars he sold his mates.

"I ate all my profits," recounts the chairman of Damac Holding Co LLC with mock seriousness.

The candy has been traded for a real estate empire and the profit has swollen to an estimated net worth of $2.1 billion. But when he was an adolescent, becoming an entrepreneur was about as welcome a notion as a root canal.

Business equalled a long, daily grind from 7am to midnight, toiling at the watch shop his father owned in the Deira Souq. Sajwani wanted, instead, to be a white-collar professional with a degree who worked regular hours.

He ignored his father's diktat to join the family business and chose to study medicine instead. A disastrous time at medical college in Baghdad ensued, when he failed his first year and he went to the US to do an engineering degree. The rest, as they say, is history.

Destiny and genetics intervened. Sajwani rediscovered his latent entrepreneurial talents while studying in the US. During his summer break in his final year, he sold timeshare products in the UAE and made a killing. It was one of his early business ventures as an adult.

Twenty-six years later, he has been listed by Arabian Business as one of the 50 richest Arabs in the world, with a net worth of $2.1 billion.

The 53-year old Sajwani oversees a business empire spanning 18 countries, with 7,000 employees that covers real estate, hospitality, industrial projects, investment, logistics and commercial trading.

Damac Properties is the largest private developer in the region and is expanding rapidly in North Africa, Jordan, Lebanon, Qatar and the Far East.

You cannot drive on a road in Dubai without bumping into a sign advertising one of Damac's sleek towers (there are more than 80 in its $4 billion portfolio).

The investment arm, Damac Invest, has more than $1 billion in assets. Damac Holding also operates the largest catering company in the Middle East.

An industrial engineering and economics graduate from the University of Washington, Sajwani built his empire from scratch: Damac grew from a local catering company to a global conglomerate in 20 years.

Not bad for a man who professes to live a simple life. For Sajwani, business is a bit of a game, where billions can be made or lost. "I don't lose sleep over it. I don't stress," he says.

"At the end of the day, all the enjoyment and emotional fulfilment in life comes from your family. Business is fine, but the love of my wife and children means so much more."

I

I did not dream of this kind of success. On the contrary, when I was a teenager, I used to hate business and what it represented. I had been forced to help out in my father's shop since I was 3. As my father was hard on me, this made me hate the idea of doing business.

Even in high school, I was an entrepreneur of sorts. I would buy chocolates at wholesale prices from Bakar Mohebi in Bur Dubai and sell them for a profit at school. A lot of things in life do not happen through planning, but because they are supposed to. Call it destiny.

Do I have any regrets? No. Until I started my restaurants, I was single. My life was my work. I would get to work by 8.30am, have a burger for lunch and continue working until 10pm. Even today I don't enjoy socialising as much as my peers ... others enjoy golfing or fishing, I love working.

I am not stressed by big issues and problems. I may lose Dh1 billion, but I come home and sleep like a baby. My strategy is to continuously review my mistakes and try not to repeat them. Small problems irritate me, but not the big ones.

Me

Me and my father:
I grew up in Dubai. My father was a businessman and, interestingly enough, my mother was a businesswoman, albeit on a very small scale. She would buy fabric from the wholesale market and sell this. My family was solidly middle-class.

I had a busy childhood: going to school in the morning, attending to my father's shop in the afternoon and being at Engineer Adnan Safarini's office from 7pm to 9pm, as my father was also a small-time developer and handled projects out of his office.

It was a routine that did not give me much time for anything else, except to have a sandwich for dinner and fall asleep. My father kept his shop open seven days a week; he sold watches and pens in the souq.

My greatest teacher was my father. He was entrepreneurial and very hard-working, working from 7am to midnight with just an hour's break for lunch. He taught me, pushed me and gave me a lot of knowledge.

Basically, he contributed to my love for hard work. He taught me to be precise as he was when it came to numbers, details and documentation. When I made a mistake, he was quite hard on me, so I learned the hard way not to make mistakes.

Particularly when I was in the shop. If I made a mistake while adding up figures, he would warn me the first couple of times, then the next time, it was corporal punishment.

I was an average student until Grade 8. Suddenly in Grade 9, I was the top of the class. One big reason behind that was that my father was not in favour of me going to university or even completing high school. He wanted me to join his business.

As he put more pressure on me to drop out, it had the opposite effect - I became more interested in academics. That's been a constant in my life since childhood - whenever anyone throws a challenge at me, I perform far better than I would have otherwise.

I grew up in a very conservative family with a very tough father. Since I was the eldest, my father's dream was that I join the family business.

And in the spirit of teenage rebellion, I was determined not to do so. Since my father was not very educated, he wasn't sure how to handle me.

Me and my career choices:
In the last four years of high school, I made up my mind that I never wanted to be a businessman. I wanted to be a doctor or an engineer. So I joined the medical college in Baghdad.

Again, that was against my father's wishes; he wanted me to work with him and I refused. I applied and obtained a government scholarship to study medicine in Baghdad.

Another of my entrepreneurial ventures took off when I was at university. Since it was under a socialist regime then, Baghdad had no luxury goods. Even soap had to be purchased from Kuwait.

My friends asked me to get them things when I went to Kuwait. On my next trip, some businessmen from our community asked me to bring back some more stuff - like cosmetics, which were three times more expensive in Iraq.

In Baghdad I wanted a car, but didn't have enough money to buy one. So I borrowed money from a friend and saved some from my scholarship. That summer I went to Germany and bought a car, drove it to Dubai and sold it for a tidy profit. I then went back to Germany and bought myself a Volkswagen - another venture!

I wanted to dress well, travel the world, live well and make the money needed for these things.

However, I failed medical college. Like most things in my life, it was a blessing in disguise. The medium of instruction was English, a language I barely spoke. I arrived late ... and was never able to catch up.

After I failed, I came back to Dubai. My father approached me again to join the family business and I refused again. We were on bad terms up until the time I left to study industrial engineering in the US.

I had learned many things from my Baghdad experience. It was my first failure and it affected my life; it had a bitter, harsh taste.
On the flight to the US, I wrote about nine pages on the reasons why I had failed and what I would do in the US. I still have that piece of paper.

Baghdad was the first time I had stayed away from my family. I did not use the newfound independence wisely, perhaps spending too much time socialising. But I had learned my lesson.

Me and the food business:
I returned from the US in 1981 and was quite keen to do an MBA. I was offered a job with Abu Dhabi Gas Industries Ltd (GASCO), with the provision that after two years of being employed, they would sponsor my MBA.

While I was at GASCO, I decided to start a catering business. It was a joint venture between me and a British company.

A year later, I could not go for the MBA as I had incurred a lot of losses in the business. I had a choice: to let the company go bankrupt or resign from my job and work on turning it around. I chose the latter. I think it was a good choice.

I had invested $200,000 of my own money in the company. Six months after I started the business, I realised the losses were about $1.2 million. There were vendors and creditors who had to be paid.

Our operating costs were largely manpower and food items. The British company had mismanaged it so much; they were buying raw materials from fancy supermarkets instead of at wholesale prices.

Having grown up in the souq, I went and bought my materials there, shaving 30 per cent off the price.

The other big overhead was manpower, where we had twice the number of people we needed. I had to make some hard decisions - to fire some people and change others. That was the toughest time.

The employees ganged up against me as a trade union and would not let me fire anyone. I went to Sri Lanka, where most of the workers came from, and recruited a new team of Tamil workers.

This worsened the situation, as the Tamils and ethnic Sri Lankans didn't get along. It was quite a learning experience. But somehow, by the end of the year I had managed to turn the company around.

We then started winning more contracts and opened branches in Abu Dhabi, Muscat, Saudi Arabia and Qatar. Things were going well. Our next step was to venture into fast food. In 1988, we got the franchise for Pizza Inn.

The first year was successful, we had an early mover advantage, then we started having problems. Some big players entered the market, in particular.

The big companies threw hundreds of millions of dollars into advertising and promotions - the game had become much too big for me. Two years down the road, we had to downsize.

We took a lot of losses, we had to swallow that and move on. We shrank our operation and sold our companies in Egypt and Saudi Arabia. We closed four fast food chains and retained the few Pizza Inns we still operate in the UAE.

Me, property and high-tech investment:
In 1996 I made a lot of money on the Omani stock market. It was boom time and I played it well. At the end of 1997, I was lucky again. I sold most of my equity in the stock exchange in December, not long before its crash in February. I was plain lucky!

I poured those profits into the Dubai property market. I built four three-star hotels in the Rigga area, sold them for a profit and that was the start of my real estate business. We built five hotels in Deira before the market for 3-star hotels softened.

In 1998, I went to the US to take part in the tech boom as a venture capitalist. We invested in more than 60 internet companies. In two years there, I learned more than my 20 years of business.

I have a tremendous respect for the American way of doing things. Nobody can match them when it comes to building big businesses. Unfortunately, the tech boom did not last. We managed to break even and had to get out of it.

I do take risks, I make mistakes, but I learn and move forward. The fact that I invested in the internet and it did not do well did not put me off technology stocks. You just have to learn how to do it better and differently.

If you try something new every time you fail, you are not accumulating experience. Knowledge comes from doing the same thing, failing, and then learning how to improve on the past.

Myself

So how does it feel on being named the 28th richest Arab businessman?
It depends on how you value things. Being No 28, No 280 or even No 1 is not the issue. I enjoy my work and my success. I live a simple, humble life and am not hankering to be ranked on any billionaire's list ... it is publicity that I do not enjoy, want or like.

For the past 25 years I have been in business, we only started advertising four years ago. Now I do not have a choice in the matter, we have to advertise. We need the publicity to build our brand name.

Success in life depends on luck and God's blessings. There are people who work harder, are more intelligent and don't make even 5 per cent of what I make.

If you leave that aside and consider why a person is successful, I believe it's always the same ingredients. You've got to work hard, work smart and do your homework. People who don't do their homework right take blind risks.

What's your strategy to handle irate customers?
For me, customers are always right, no matter how hostile or rude they may be. You have to solve their problems. Customer care was one of the most important things I learned in the US.:lol:

Will you slow down anytime soon?
I am not thinking of retirement. I enjoy my work, but perhaps there will be a day when I will need to slow down.
As your family grows, you need to spend more time with them. I do take more time off nowadays.

I take a couple of hours off for lunch to spend with the family. In the 17 years I have been married, every year I have taken a month off in summer and a week off in the winter to spend with my family. So it's not as if I work around the clock.

What are your dreams for your children?
Like any father, I hope my children have a good education and, more importantly, good morals. They should be humble and not proud of their father's wealth.

That's the big challenge for them - and me. I come from a humble background, I built my business from scratch. They have been born with a silver spoon. They need to work hard, stay grounded and understand that no matter how big they become, they need people.

The richer you are, the more you need people. I need to be friendly with bankers, lawyers, contractors and employees. The more my business grows, the more I depend on people's goodwill

bizzybonita

April 13th, 2008, 07:28 PM

Damac to continue with construction of palm springs

Saturday, April 12, 2008

Damac Properties has now formally announced the reversal of its decision to stop the Palm Springs project, say media reports.

After the leading Dubai-based developer, cancelled the 25-storey beachfront development project at the Palm Jebel Ali last month, offering the investors with compensation far below the current market value, the investors raised hues and cries about losing millions of Dirhams on their investment.

The tale is said to have created a bad publicity for Damac in major markets which the firm has been seeking to attract investments from, particularly in international markets such as the UK.
Investors have revealed that they received calls from Damac earlier this week, informing them about progressing with the Palm Springs project.

The project will be located on the new plot provided by master developer Nakheel, with few changes in the building plans.

Damac's Senior Vice President, Niall McLoughlin, in his statement, mentioned that Damac will shortly announce a decision on the project.

Damac had reasoned that the cancellation of the project after five years of launch was due to the "re-development of plots" and that the development could no longer be situated on the re-allocated plot.

This explanation was however questioned back, when Palm Jebel Ali master developer, Nakheel, said it had informed the investors about changes to the masterplan about ten months ago.
About 60 UK-based investors have been threatening Damac to take the matter to court, unless the developer reverses its decision and progresses with the construction work.

The group stormed the London launch of Damac's Jumeirah Village South project, and gave the developer a time-limit until 11th April to change its decision or face legal action.

In the meanwhile, Damac also changed its mind about the cancellation of Haz Tower in Business Bay on Wednesday, after the investors complained about the plans to pull back the project. The Haz Tower worth Dh.240million was launched in July and is now estimated to be about Dh.660mn.

R

GoDubai!

April 13th, 2008, 08:21 PM

The article praising Sajwani is such a load of... You cannot drive on a road in Dubai without bumping into a sign advertising one of Damac's sleek towers (there are more than 80 in its $4 billion portfolio).

What? 80 billboards. How do billboards equal a $4 billion portfolio. I don't know what makes me vomit more, scheming Damac or bubble head media writers who publish this garbage. :puke:

fairouza

April 13th, 2008, 11:35 PM

Formally announced ???? Somes calls to the Investors.... nothing else, wait and see what they will writing on a piece of paper
:ohno:

Dubai_Steve

April 14th, 2008, 05:36 PM

The revised infrastructure development programme on the Palm Jebel Ali means that building will not start now until 2012, that is 8 years after initial sales of Palm Springs and who knows when completion will be!

Hanna

April 15th, 2008, 08:42 AM

Rera probes buy-back complaints
By Joseph George on Monday, April 14 , 2008

(CRAIG SCAR)

Real estate watchdogs have said they would not hesitate to investigate complaints about developers seeking to buy back unfinished properties from investors.

The warning from Dubai’s Real Estate Regulatory Agency (Rera) came after Damac attempted to shelve plans for the Palm Springs development, prompting an investigation by the agency.

Investors in the Dh300 million waterside project at the Palm Jebel Ali threatened legal action after the developer announced a buy-back programme. Homes in the project were sold more than five years ago but construction has yet to start.

Emirates Business spoke to a number of developers who confirmed they were buying back apartments from investors due to soaring construction costs. The companies – mostly small and inexperienced ones – launched various projects in 2006 but are yet to start work on them.

In the past, developers have bought back flats and then relaunched them at higher prices. But Rera CEO Marwan bin Ghelaita told Emirates Business that the only complaint received so far concerned Damac.

“We have not received any other complaint from investors about developers buying back properties. But if we do, we will definitely investigate the issue,” said bin Ghelaita.

However, several other properties in the emirate, including Al Arefi Marina at Dubai Marina and the A1 Tower at Jumeirah Village South, are reported to have been either put on hold or cancelled. The 50-storey A1 was originally scheduled for completion this year but work has yet to begin.

The increase in building costs is said to be the main reason for the cancellation of projects. Costs in the Gulf have risen by almost 30 per cent over the past year – forcing several small- and medium-sized developers in the UAE to suspend work.

Many projects marketed and sold between 2004 and the first quarter of 2007 for between Dh480 and Dh800 per sq ft are now being sold for Dh1,500.

As a result, projects where construction work is yet to begin or is half-complete have been severely affected, with contractors unable to continue without suffering substantial losses.

A senior sales representative dealing with the 31-storey Al Arefi Marina confirmed to Emirates Business that construction work was on hold, but said the company had yet to decide if it would buy homes back from investors.

“The apartments were sold for Dh800 per sqft but today the rates in Dubai Marina range from Dh1,700 to Dh2,000,” said Mohammed Ali. “We are asking our investors to visit our office and we are working on a solution to the problem. The company has already approached the Land Department.

We have the relevant documents about the increase in construction costs and will show them to our investors.”Officials dismissed speculation the project had been sold to Abu Dhabi-based Iskan. The building was expected to be completed this year, but to date only 18 floors have been built.

A senior sales official at Ali Moosa and Sons Contracting Group – which is developing the A1 Tower – said all transactions had been put on hold until the company applied for an escrow account.

Another official at the company said: “At present we cannot reveal any more details about the progress of the construction.”

Developers who spoke anonymously to Emirates Business said they would not hesitate to buy back properties if they could not cope with rising costs.

“There were several problems that prevented us from starting work on one project,” said a developer operating in Jumeirah Village South. “Although the completion date of the project is 2008, construction is yet to begin there. It just does not make business sense to build something for Dh1,000 per sqft that you have sold for just Dh600.”

An EFG Hermes report said construction cost inflation is being driven high by rising costs of building materials as well as labour.
A serious shortage of labour and raw materials and strong demand as well as the mandatory adoption of green building codes and health and life insurance are likely to increase construction costs in the UAE even further this year.

Over the past year the cost of cement, concrete and rebars has increased by up to 30 per cent. Steel prices have risen dramatically from Dh1,983 per tonne in 2004 to between Dh3,800 and Dh4,000 today.

A severe shortage of cement has led to black market supplies being priced at Dh450 per tonne compared with Dh328 from factories in Ras Al Khaimah – which has put a number of projects under pressure. Similarly, tender returns have risen by almost 15.5 per cent over the past year because of the increase in material costs.

Imad Al Jamal, vice-president of the UAE Contractors’ association’s higher technical consultative committee, said: “Nobody expected costs to go up so dramatically – the increase has overtaken all our estimates.

“Today it is very difficult to build a quality structure for less than Dh750 per sqft. In 2006 the average cost of construction per sqft stood at less than Dh250. However, today you can only build an average project for about Dh350 per sqft.”

Property consultant Rakhee Desouza said: “Buy-backs have happened several times before. Deposits are handed back and the projects are later relaunched at a higher price.”Strict rules introduced by Rera and the launch of escrow accounts have reined in the erring developers.

But Al Jamal said: “Some developers, however, try to avoid the law by buying back properties. Such a practice should not be encouraged at any cost. Anyway, gone are the days when developers dictated the terms in the market. Today it is the contractors who determine the price of property.”

:cheers: