#PROJECT: THE ROYAL ESTATES ( DIP) [Archive]

Typhoonpilot

February 27th, 2009, 07:12 PM

Has anyone given post dated cheques for this new payment plan? Or has anyone been offered anything else?

I went to site 2/3 weeks back and I couldn't see any plots marked out, just one very very large peice of land. A part of that land was getting flattened.

I've driven out there twice and can't find the site. The Palisades is well marked and then it becomes plain white fences. The photos on their website under construction progress (http://www.aristocratgroup.com/progress_updates_project_side.html) look to be taken from behind the Palisades fence line. Not a single Royal Estates sign to be found.

I talked to the Finance Controller of RERA at the recent Dubai property show. He stated that you must pay 30%, even if construction hasn't started. I think the 20% is going to be applied to future projects. He was very aware of who The Palisades were, but had never heard of The Royal Estates or Aristocrat Star Investments. When you look under project approvals on the RERA website you can't find The Royal Estates, only The Palisades. I questioned them about this and the manager of Aristocrat Star stated they are piggy backing on The Palisades approval.

If a project has not started within 6 months of approval from RERA then it must be cancelled. The big question is what constitutes commencement of construction. Just running a tractor over the sand to flatten it out a little doesn't really cut it in my eyes. They need to be doing foundation work. Not sure what RERA's take on that is. I really hope this project is cancelled. Either that or they reduces the prices by 30-40%. Do the math yourself. At the original price that we paid we would still be ahead if we walked away from 30% as opposed to paying the full amount. These units will be lucky to ever get built. If they are then they will be lucky to be worth 50% of the original price.

Apartments on the Palm are now down to 1000 Dirhams/Sq.Ft. The Royal Estates might be worth 500-600. Possibly less depending how much further prices fall.

Construction costs are way down and some companies in Abu Dhabi are giving investors a new ( lower ) price. If Aristocrat Star wants to keep their current investors they need to lower the contract price by 30-40%.

They are calling me twice per week to get me to sign up for their payment plan. No way am I going to give them 30 post dated checks when they haven't even broken ground.

I'll be following this all up with RERA in the next week.

They either drop the price by 30-40%; cancel the project; or fight me for anymore money.

Typhoonpilot

Bongoboots

February 27th, 2009, 11:27 PM

Typhoonpilot

March 2nd, 2009, 04:32 PM

Excellent post Typhoon Pilot. Problem is how to get money back- I've been trying to call RERA about the fact that it has taken more than 6 months to start the project but can't get through to them - Article17 of Law No 8 of 2007 states that a developers registration shall be cancelled from the register if it has not started structural works after the lapse of 6 months from the date of approval of the off plan sales without acceptable excuse. So what does that mean for us? I think the sensible thing for the developer to do would be just to shelve the project due to unprecedented market conditions and refund our money - that way they can walk away with their reputation intact- here's hoping!

Hi Bongo:

I agree, shelving the project is the best thing for us. Sadly Aristocrat Star seems to be going ahead. I was out there today and drove onto the site. I entered at the unfinished Palisades structure and turned right down the sand packed road until getting to the corner closest to Ewan and Green Community West. There were a few cars there with some guys laying concrete blocks. Met two gentlemen working on the Royal Estates project. They said the structure they were going to build there would be the showroom/office for the project. They said that construction of the buildings was going to commence in May.

TP

methodinmadness

March 3rd, 2009, 11:11 AM

One must acknowledge that Aristocrat Star Investments are in this for the business prospect of making a profit. They will be delighted that building costs have gone down..it just means they will make more profit. As for them reducing the prices for properties already sold off-plan.. forget it!

Whether or not the new proposed RERA rules apply a) the developer must have completed at least 20% of the construction before they can sell off-plan & b) that payments must be linked to construction milestones… remains to be seen in this case.

The only course of action one can take is to not pay anymore money until there is tangible evidence that the project is going ahead and in a timely manner.

Whatever you decide, don’t fall into the trap of handing out post-dated cheques. Firstly you will never see the cheques again (they will be used as guarantee’s and collateral) and secondly, should one bounce, the signatory on the cheque risks imprisonment until cheque and probably the whole debt is fully paid. There is no legal way you can stop a cheque being cashed either.

Apparently the investor would need to register the off-plan purchase with RERA before RERA will take any action on the investor’s behalf so more expense I’m afraid!

Spurs

March 4th, 2009, 05:53 AM

One must acknowledge that Aristocrat Star Investments are in this for the business prospect of making a profit. They will be delighted that building costs have gone down..it just means they will make more profit. As for them reducing the prices for properties already sold off-plan.. forget it!

Some developers are doing this, Deyaar for instance

Whether or not the new proposed RERA rules apply a) the developer must have completed at least 20% of the construction before they can sell off-plan & b) that payments must be linked to construction milestones… remains to be seen in this case.

The only course of action one can take is to not pay anymore money until there is tangible evidence that the project is going ahead and in a timely manner.

Whatever you decide, don’t fall into the trap of handing out post-dated cheques. Firstly you will never see the cheques again (they will be used as guarantee’s and collateral) and secondly, should one bounce, the signatory on the cheque risks imprisonment until cheque and probably the whole debt is fully paid. There is no legal way you can stop a cheque being cashed either.

Agree, you are mad to put down PDC in this country, some westerners dont realise how strickt they are on the mentioned consequences

Apparently the investor would need to register the off-plan purchase with RERA before RERA will take any action on the investor’s behalf so more expense I’m afraid!

This is lease hold property isn't it??? In which case we will not see a title deed and so do we need to register this with RERA / Lands department.

methodinmadness

March 4th, 2009, 07:10 AM

Spurs

March 4th, 2009, 08:42 AM

I think all property sales transactions need to be registered with RERA regardless of Freehold or Leasehold. Take for example JBR apartments..these are leasehold and presumably the individual owners have registered with RERA? Perhaps one of Aristocrat Star Investment selling agents (i.e. Better Homes) can confirm? In fact the selling agents should be driving this argument as a whole on behalf of their customers who purchased properties in the development!

JBR is freehold! You own the property and your have a title deed.

DIP is leasehold! You own the lease of the property which can be renewed, which in Royal Estates is 30 years.....or was it 90 yrs???

For this reason I do not believe it is at our expense to register the property as we dont own it.

DubaiGuru

March 4th, 2009, 08:54 AM

Who did you guys meet there? There's a gentleman called Suleiman who sat across the table for over an hour explaining progress, payment plans, the option to go for the new one or not to and I must say it was very relieving to have someone express this degree of professionalism today.

The site is in fact behind the Palisades fence as shown on the website. They're building a site office there too and apparently have bids to begin branding on the site as well.

They in my opinion seem committed to going ahead with the project by all means, that's good enough for me. Phew!

DubaiGuru

March 4th, 2009, 09:21 AM

Hi Typhoonpilot,

I'm quite surprised by some of your comments and not to mention the negativity. Having gone through your posts, I've done some research and put down facts that I'd like to share.

- No Royal Estates sign
I've addressed this in my earlier post and I think someone's already mentioned that if you go to the site now you'll see guys setting up a structure there for Royal estates.

- RERA not knowing Royal Estates
I'm shocked at both your comments here. People don't need to be tech savvy to look this up.
http://www.rpdubai.com/rpdubai/jsp/template.jsp?pageID=20007&&lang=0 is the link to RERA's website and I can clearly see Aristocrat Star Investments there! ID 239.

Not sure if you're in touch with the CEO at RERA too, Marwan Bin Ghalita. Apparently he knows Aristocrat very well and is constantly in touch with them. He in fact shared the same table with their CEO at the recent event RERA had in Dubai...!

- 6 months delay clause
Truth be said, this one is probably the biggest deal breaker. But if you speak to them and ask the guys on site, they'll tell you that the delay was in fact from the master developer/land owner. I know of many other developers - Cirrus, Halcrow, etc that are facing the same problem because of delays in getting the land handed over inspite of the developers living up to their obligations. Even RERA's admitted that this is a problem they're trying to resolve.

Since I do not possess the economic sense or statistics to counter your valuations in terms of pricing and value at R.E, I shall refrain from doing so.

Note though that The Palm was expensive to begin with (hi-end has been the most badly hit today) and had a lot of speculation from day 1. Premiums reached 2-400% on speculation in the off plan market. There's your reason on why prices are dropping today. My property on the Palm is still worth "MORE" than what I initially paid. And R.Estates is reasonable in the first place and there had luckily been no speculation and inflated premiums.

The Business editor at Gulf News is not a paid employee of Aristocrat to mention his name and stake his reputation on calling their payment plan unique. If you can't afford to pay your second installment of 15% in the case of their offices at AED 330,000, it's better off to pay it in installments you can afford. As far as I know, the payment plan is an option you can choose to take or ignore!

Regards,

DG

I've driven out there twice and can't find the site. The Palisades is well marked and then it becomes plain white fences. The photos on their website under construction progress (http://www.aristocratgroup.com/progress_updates_project_side.html) look to be taken from behind the Palisades fence line. Not a single Royal Estates sign to be found.

I talked to the Finance Controller of RERA at the recent Dubai property show. He stated that you must pay 30%, even if construction hasn't started. I think the 20% is going to be applied to future projects. He was very aware of who The Palisades were, but had never heard of The Royal Estates or Aristocrat Star Investments. When you look under project approvals on the RERA website you can't find The Royal Estates, only The Palisades. I questioned them about this and the manager of Aristocrat Star stated they are piggy backing on The Palisades approval.

If a project has not started within 6 months of approval from RERA then it must be cancelled. The big question is what constitutes commencement of construction. Just running a tractor over the sand to flatten it out a little doesn't really cut it in my eyes. They need to be doing foundation work. Not sure what RERA's take on that is. I really hope this project is cancelled. Either that or they reduces the prices by 30-40%. Do the math yourself. At the original price that we paid we would still be ahead if we walked away from 30% as opposed to paying the full amount. These units will be lucky to ever get built. If they are then they will be lucky to be worth 50% of the original price.

Apartments on the Palm are now down to 1000 Dirhams/Sq.Ft. The Royal Estates might be worth 500-600. Possibly less depending how much further prices fall.

Construction costs are way down and some companies in Abu Dhabi are giving investors a new ( lower ) price. If Aristocrat Star wants to keep their current investors they need to lower the contract price by 30-40%.

They are calling me twice per week to get me to sign up for their payment plan. No way am I going to give them 30 post dated checks when they haven't even broken ground.

I'll be following this all up with RERA in the next week.

They either drop the price by 30-40%; cancel the project; or fight me for anymore money.

Typhoonpilot

Typhoonpilot

March 4th, 2009, 01:25 PM

Hi Typhoonpilot,

I'm quite surprised by some of your comments and not to mention the negativity. Having gone through your posts, I've done some research and put down facts that I'd like to share.

It's not "negativity", it's reality. Aristocrat Star have not been very good at communicating where they are and where they are going. In the absence of information one must wonder what is happening.

- No Royal Estates sign
I've addressed this in my earlier post and I think someone's already mentioned that if you go to the site now you'll see guys setting up a structure there for Royal estates.

Agreed, but why is it behind the Palisades fence and why didn't they ever tell me that when I wanted to go out for a visit? Workers are, in fact, setting up a structure, but again what does that mean? The Palisades built, but never finished, a structure that looked to be their site office and showroom and now it sits abandoned. Will Aristocrat Star do the same in order to collect the next 10% or 15% due from their investors. In this economic climate one must be suspect?

- RERA not knowing Royal Estates
I'm shocked at both your comments here. People don't need to be tech savvy to look this up.
http://www.rpdubai.com/rpdubai/jsp/template.jsp?pageID=20007&&lang=0 is the link to RERA's website and I can clearly see Aristocrat Star Investments there! ID 239.

It wasn't there a few months ago when I looked, but now it appears to be. Okay, plus one for Aristocrat Star.

Not sure if you're in touch with the CEO at RERA too, Marwan Bin Ghalita. Apparently he knows Aristocrat very well and is constantly in touch with them. He in fact shared the same table with their CEO at the recent event RERA had in Dubai...!

- 6 months delay clause
Truth be said, this one is probably the biggest deal breaker. But if you speak to them and ask the guys on site, they'll tell you that the delay was in fact from the master developer/land owner. I know of many other developers - Cirrus, Halcrow, etc that are facing the same problem because of delays in getting the land handed over inspite of the developers living up to their obligations. Even RERA's admitted that this is a problem they're trying to resolve.

Aristocrat Star needs to be forthcoming on the timeline for construction with specific details of the plan including a list of contractors. They want our money so they need to communicate.

Since I do not possess the economic sense or statistics to counter your valuations in terms of pricing and value at R.E, I shall refrain from doing so.

It's easy really. Look at the tens of thousands of units completed or nearing completion in the area of R.E.. Then look at the mass exodus of skilled workers ( read, those able to afford the rent or purchase of a R.E. unit ) from Dubai over the next year. Estimates are that 250,000 people will leave Dubai this summer alone ( waiting for kids to finish the school year ). Valuations have come down significantly and will continue. Right now they've found a pivot point where sellers are still hoping to get their original investment back and buyers are waiting for prices to decline further. Over time the sellers will be forced to accept a loss. Values will continue to decline. The huge increase in supply at the same time as a huge decrease in demand will drive prices for sale and rent significantly lower than they are today. Residential units of the caliber of the Royal Estates will command a maximum of 600 Dirhams/sq.ft. Rents for a one bedroom apartment will be close to 45,000 to 50,000/year, maybe less.

So an investor shells out 1,000,000 Dirhams for said one bedroom apartment that will only be worth 500,000 at completion, an immediate 500,000 Dirham loss. They then struggle to find a tenant at a price that won't even cover the mortgage ( oh wait, there aren't mortgages available on the Royal Estates ) Or they walk away from 300,000 ( the 30% required by law ). Over both the short and long term walking away is the financially prudent thing to do.

Aristocrat Star will not be able to find a replacement buyer for units that people will walk away from. Why? Nobody is going to buy off plan property that hasn't even started construction and nobody is going to take the risk on a small developer.

Note though that The Palm was expensive to begin with (hi-end has been the most badly hit today) and had a lot of speculation from day 1. Premiums reached 2-400% on speculation in the off plan market. There's your reason on why prices are dropping today. My property on the Palm is still worth "MORE" than what I initially paid. And R.Estates is reasonable in the first place and there had luckily been no speculation and inflated premiums.

The Business editor at Gulf News is not a paid employee of Aristocrat to mention his name and stake his reputation on calling their payment plan unique. If you can't afford to pay your second installment of 15% in the case of their offices at AED 330,000, it's better off to pay it in installments you can afford. As far as I know, the payment plan is an option you can choose to take or ignore!

Regards,

DG

I'll ignore that payment plan because it really only favors the developer and giving post dated checks for 30 months is insane.

Typhoonpilot

Spurs

March 4th, 2009, 05:41 PM

DG if you are happy to pay for something that will be worth half the price on handover.....you go for it.

Ill loose my 20% I put down. The remaining 80% ill put in a fixed deposit acc (NBD 7%) after 3 years this 80% will be back up to 100% of what I had. I will then buy the unit at a predicted (and relistic) 50% of the price on handover.

Bongoboots

March 4th, 2009, 11:46 PM

Dubai Guru, Judging by your comments I can only believe someone that is so defensive of this project obviously must work for either the developer or the agent...am I correct?

Typhoonpilot

March 5th, 2009, 07:47 AM

Here is a developer that understands the situation and is making the right moves to keep their investors. From today's Business 24-7:

By

Staff Writer on Thursday, March 05, 2009

Mada'in Properties, a Shariah-compliant developer, yesterday said it will implement a new pricing policy that will reduce the purchase price of all its properties by up to 30 per cent.

Existing customers will receive revised contracts with a reduction of about 30 per cent of the total purchase price and will have their remaining payments rescheduled. This revision will give customers a reduction on the original principle cost, the company said in a statement.

Abdul Aziz Al Awar, CEO, Mada'in Properties, said: "We have studied the market conditions and have formulated a strategy that deals with the past, the present and the future. Bearing this in mind, we have made the decision to assist our customers in their investments, not only in good times, but also in the current market conditions. The construction costs have come down significantly, allowing us to pass on the savings to our current customers."

More than 80 per cent of Mada'in's customers have committed to their investment and will continue their payments until the completion of the project.

"Innovation in concept, design, execution and competitive pricing have been the driving forces behind all our projects. This unique selling proposition has attracted property investors internationally as well as regionally," added Al Awar.

Aristocrat Star would be wise to adopt a similar strategy. Anybody that does the math will come to the same conclusion as Spurs and I. The only way Aristoctrat Star can keep enough investors to complete the project is to take bold and innovative steps.

Typhoonpilot

dubsolos1

March 5th, 2009, 08:17 AM

I agree with Spurs. Other option is putting my 1 mill in a 1 bed in marina, rent it out 3 years at 10% with which I recover what I lost in RE, and then I still have a much more valuble 1 bed in marina than in dip, so unfortunately I'll stop my payments with royal estates.

Their next step should be what a few developers did already which is reduce the price of their property (like Mada'in did today reducing prices by 30%). By doing so they would be able to save a few investors that otherwise would simply get out.

DubaiGuru

March 5th, 2009, 09:23 AM

Hi Typhoonpilot

Thank you for your comments and engaging in a healthy discussion. I'm not saying I agree with a lot of things or am extremely upbeat about the scenario. I'm just trying to make the best of a bad situation work for me. ASI introducing the payment plan was good taking into consideration the fact that most people just didn't have money to pay their next installments. I have seen the feedback from investors where they've genuinely thanked ASI, with what appeared to be legit phone and mail id's. How many other developers are even offering this to their existing customers, none that I know of besides Emaar. Chapal as far as I know was extending this for new customers.

One of the reasons I chose to comment here and be active is to learn something and engage in a discussion we can all benefit from. I'm not sure if you're aware of the laws and decrees the govt. bodies intend to introduce. I have my serious doubts if we can walk away with 20-30% of the initial investment as this will lead to the entire real estate market collapsing which the govt is trying to ensure doesn't happen.

I am completely with you on the fact that prudent and innovative measures are the call of the day!

P.S- Thanks for sharing that post on Mada'in :-)

methodinmadness

March 8th, 2009, 07:27 AM

Dubai Guru, Judging by your comments I can only believe someone that is so defensive of this project obviously must work for either the developer or the agent...am I correct?

My thoughts exactly!:lol:

Freestyler

March 8th, 2009, 09:10 AM

New payment plan changes 30/70 payment plan. With new plan investor is paying installments every month and project is delayed then investor may end paying most of the purchase price before completion. If ACI kept 30/70 payment plan than that would have made more sense.

Hi Typhoonpilot

Thank you for your comments and engaging in a healthy discussion. I'm not saying I agree with a lot of things or am extremely upbeat about the scenario. I'm just trying to make the best of a bad situation work for me. ASI introducing the payment plan was good taking into consideration the fact that most people just didn't have money to pay their next installments. I have seen the feedback from investors where they've genuinely thanked ASI, with what appeared to be legit phone and mail id's. How many other developers are even offering this to their existing customers, none that I know of besides Emaar. Chapal as far as I know was extending this for new customers.

One of the reasons I chose to comment here and be active is to learn something and engage in a discussion we can all benefit from. I'm not sure if you're aware of the laws and decrees the govt. bodies intend to introduce. I have my serious doubts if we can walk away with 20-30% of the initial investment as this will lead to the entire real estate market collapsing which the govt is trying to ensure doesn't happen.

I am completely with you on the fact that prudent and innovative measures are the call of the day!

P.S- Thanks for sharing that post on Mada'in :-)

DubaiGuru

March 8th, 2009, 02:32 PM

My thoughts exactly!:lol:

Do you think they'll offer me a job?

Effervescence

March 9th, 2009, 10:26 AM

What does Magic Planet have to do with Royal Estates Dubai Guru - Please elaborate.

Does anyone know about Royal Estates :

I have made some findings after digging and would like confirmation??
When looking at upcoming hotels. I decided to look up the ‘Shaza hotel’ – Valli Palace in the Royal Estates (DIP). In an earlier article I read that ‘Shaza’ was a name to watch out for in the hotels in ME.

On BNC Networks it was only on ‘design’ stage, when I called up the owner – Aristocrat, I got passed to a Mr Ayoub on site (he may be the Project Manager, he was grumpy however seemed interested and kindly informed me that the ‘hotel apartments’ (think he said 8 buildings were in construction phase)

I came across a group of projects today in the ‘Royal Estates’ (see below) - Maybe they are the buildings he was talking about? As it is in the luxury segment maybe there is more of a chance they are going through? Especially, as it is based in Dubai Investment Park. I am in the process of trying to get through to the Horizon Consulting group to find out more on these projects.

According to magazine articles they are set to complete the entire hotel in December 2010.

methodinmadness

March 12th, 2009, 01:58 PM

Ref. Royal Estate Update 11th March 2009

I don’t think they have received the level of commitment they need with the new payment plan. Extending the offer is not going to make any difference! Anyone handing over post dated cheques runs an extremely high legal risk. Any bank will confirm this. Further more the project has not even started being built so they might be liable to return deposits already paid?

Freestyler

March 14th, 2009, 02:13 PM

There is no plot number for this project on RERA site... is that good or bad?

camelrider

March 14th, 2009, 09:21 PM

Typhoonpilot

March 17th, 2009, 03:22 PM

Ref. Royal Estate Update 11th March 2009

I don’t think they have received the level of commitment they need with the new payment plan. Extending the offer is not going to make any difference!

Agreed MiM, looks like Deyaar has figured out what it will take. When will Aristocrat Star come to the same conclusion?

Dubai-based Deyaar, the emirate's second largest listed developer, today unveiled a plan aimed at helping it withstand the downturn in the property market. The steps announced by the firm include cutting the price of units by up to 30%, easing payment plans for investors and giving full refunds on some postponed projects. Projects that have been delayed by the developer include Deyaar Enclave, Deyaar Park and Mirar Residences.

Typhoonpilot

bizzybonita

March 18th, 2009, 09:14 AM

Deleted!

camelrider

March 21st, 2009, 12:33 PM

I really wonder if Aristocrat can show us all, that some common sense prevails!

They should look at Big Developers like Emaar, Nalheel Deyaar, to mention a few, they were wise & professional enough & REALISTIC through out these hard times affecting the whole world & of course UAE!

They have cancelled some of their projects, & refunded most of the clients' payments!

http://the-royal-estates.blogspot.com/

If anyone tries to post in this blogspot, you will recognise that the thread has been sort of 'hijacked', & nobody can post!

This shows Aristocrat's fear of REALITY that we are all living in!

We investors in this project need to really do something, to stop this from having worse financial effects!

Has anybody attended the meeting which was supposed to be held at MOE?

If so any outcome?

I am in contact with several investors in this projects, who in total amount to more than 30 units, & NOBODY is willing to pay the next 15%!

Come on Aristocrat, let be real & face this reality, & cancel the project!

Spurs

March 22nd, 2009, 07:23 AM

investstop

March 22nd, 2009, 06:22 PM

Many are not paying, but it is almost impossible to get people together and file a petition to RERA on behalf of all of us.
Therefor it is my advise, that everybody informs Aristocrat of their intentions ASAP, and thereafter goes to RERA with written information as well. This way RERA will see that they are getting many complaints about the project and the developer, and lets hope that matters.

Hurry up, time might be running out!

Bongoboots

March 22nd, 2009, 10:08 PM

Perhaps we should get an online petition up and running and when we have a sufficient number of signatories we could send it on to RERA, Aristocrat and The Press.
Anyone volunteering to draw up the petition?

camelrider

March 23rd, 2009, 09:40 AM

we need to act together & our interests are the same!

Has anyone tried posting in the blog?

Its blocked I guess.....

typical UAE!

Freestyler

March 23rd, 2009, 11:07 AM

we need to act together & our interests are the same!

Has anyone tried posting in the blog?

Its blocked I guess.....

typical UAE!
works for me. It is not blocked.

camelrider

March 23rd, 2009, 09:03 PM

Wasn't it yesterday that Aristocrat signed the contractors to build???

I feel investors have left it to late to get together and present their case :ohno:

Better late than NEVER!..... although I can understand you in a way.. as this place is a WHOLE JUNGLE!!

sarwa123

March 23rd, 2009, 10:50 PM

Guys let us meet asap (what about thursday 2 pm @MOE second cub)

sarwa123

March 23rd, 2009, 10:53 PM

let us meet this coming thursday 2 pm @ MOE Secodnd cub.

Spurs

March 24th, 2009, 11:09 AM

let us meet this coming thursday 2 pm @ MOE Secodnd cub.

The plan of action should be to draw up a petition, get eveybody to sigh it and then take this to the lands department, the more people to come the better.,,,,also press turning up i'm sure would help.

I was given the below lawyer and tryied to contact him but he did not answer, I am told he is forming a case:

Alex Watson
Head of Corporate Services
M.A.C Davidson & Associates Legal Consultants

Suite 503,
Shangri la Office Building
Sheikh Zayed Road
Dubai

Tel: +971 4 3438897
Fax: +971 4 3438879
Mob: +971 50 5517924

www.macdavidson.com

sarwa123

March 24th, 2009, 05:22 PM

Mr.Spurs and all :
I will be waiting at MOE second cub thursday @ 2 pm
plz let me know if any one coming ,We r running out of time .

Typhoonpilot

March 24th, 2009, 06:21 PM

Mr.Spurs and all :
I will be waiting at MOE second cub thursday @ 2 pm
plz let me know if any one coming ,We r running out of time .

Do you mean Second Cup, the coffee shop?

The plan of action should be to draw up a petition, get eveybody to sigh it and then take this to the lands department, the more people to come the better.,,,,also press turning up i'm sure would help.

I was given the below lawyer and tryied to contact him but he did not answer, I am told he is forming a case:

Alex Watson
Head of Corporate Services
M.A.C Davidson & Associates Legal Consultants

Suite 503,
Shangri la Office Building
Sheikh Zayed Road
Dubai

Tel: +971 4 3438897
Fax: +971 4 3438879
Mob: +971 50 5517924

www.macdavidson.com

I've used MAC Davidson before. I'll give my contact there a call tomorrow and see what they know.

TP

investstop

March 24th, 2009, 06:33 PM

I'll be there

sarwa123

March 24th, 2009, 08:25 PM

yes it's the coffe shop,just front of starbucks-boulder (MOE),

Bongoboots

March 24th, 2009, 11:22 PM

Would love to come but as we live in London we won't be able to make the meeting..Please keep us informed.
Thanks

rocky9

March 25th, 2009, 11:36 AM

Hi

I will be there at second cup 2pm.

I will also inform friends who have invested in the same to come.

Spurs

March 25th, 2009, 12:06 PM

Yes I will attend, I also will tell friends who have invested

Spurs

March 25th, 2009, 12:17 PM

Wednesday, March 25, 2009
Dubai Property Court - Developer must repay 7.4 Million AED

source The National 25 March 2009

DUBAI // A property developer has been ordered by the Dubai Real Estate Court to return Dh7.4 million (US$1.38m) on the sale of several apartments to a buyer after failing to register the sale with the Dubai Land Department’s property register.The court ruled the sale null and void yesterday and ordered the developer to pay nine per cent interest to the buyer on the money from the date of the sale last April. The developer must also pay the full court costs.According to a statement issued by the Dubai Courts Department, the ruling is the first of its kind to cancel a property sale since the court was established last August.In his summary, the presiding judge, Omar Miran, said the law stipulates that any transfer of ownership or other property transaction not registered in either the land department’s property register or its preliminary property register is null and void.The law gives developers a 60-day grace period to register all property sales concluded before that date. Failure to do so also renders the sale null and void.
The sale in this case was concluded on April 8. The buyer filed his case on Jan 21 this year, asking the court to order the developer to refund the money he had paid for the apartments plus 12 per cent interest.

Are our units registered with the lands department?????? I believe the project is but our units are not!

camelrider

March 25th, 2009, 03:00 PM

can u pls ocnfirm place & time of the meeting?

still @ MoE 2pm Thursday opposite Starbucks???

can u confirm name of place is "2nd cup"?

Spurs

March 25th, 2009, 03:11 PM

Location: MoE, coffee shop named "2nd cup"

Time: 2pm Thursday

See you all there

camelrider

March 25th, 2009, 03:21 PM

thanks we will be there!

Typhoonpilot

March 26th, 2009, 07:36 AM

Location: MoE, coffee shop named "2nd cup"

Time: 2pm Thursday

See you all there

I'll be there. It's Second Cup, phone 341-0803.

TP

dubsolos1

March 26th, 2009, 08:38 AM

from gulf news:

Aristocrat awards Dh600 million contract
By Nadia Saleem, Staff Reporter
Published: March 25, 2009, 23:17

Dubai: Aristocrat Star Investment awarded a Dh600 million construction contract on Wednesday to Power Line Gulf Construction for the Dh5 billion Royal Estates project.

Osmal Valli, group chief executive of Aristocrat Star Investments, said that the project should be completed within 30 months and that 70 per cent has been sold.

Valli said that prices will not be revised due to market conditions, as they were "already at a reasonable" price. However, the payment plan has been adjusted and spread out over 90 months.

"This move involved utilising additional funds from our international operations. This payment plan was extended to our existing customers to assist them in difficult financial times and not as a tool towards getting new sales. As a result, the customer feedback we have received has been positive and overwhelming," he said.

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

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

Ebrahim P. Ghosal, managing director of PLGC said that it is "a good environment for starting work on the project," as the market prices for materials are stable at the moment.

Last year, prices of steel and cement saw huge fluctuations, leading to friction between contractors and developers as the price increase had to be absorbed by the contractors. Some were negotiated, while others included a 'fluctuation clause' that stated the developer had to absorb the materials price increases.

Ghosal said that while there was no fluctuation clause in the company's contract with the developer for this project, however, "should the contract prolong, for any reason, there will be mutual agreement on adjusting prices.

"In the long term there could be some price movement, but it is stable now."

The groundwork has already started, and the contractor will begin work on town houses, followed by offices and apartments.

The Royal Estates comprises 3.6 million square feet of commercial, residential, retail and a 5-star hotel.

Freestyler

March 26th, 2009, 03:25 PM

what happened with the meeting?

Bongoboots

March 26th, 2009, 10:37 PM

Spurs

March 29th, 2009, 01:19 PM

The meeting at the MOE went well.

12 people turned up, many with multipe units and all knowing other investors who are unhappy.

Please email the below address to be invloved in the next steps:

royalestatesinvestorsgroup@gmail.com

Freestyler

March 29th, 2009, 03:25 PM

when did the meeting end because I went there late @ 3pm :(

dubsolos1

April 2nd, 2009, 10:02 AM

Hi everyone,

So far we have about 20 people signed in to our group for a total of over 40 units.

The people that have not signed in I invite to write to royalestatesinvestorsgroup@googlegroups.com as we are meeting this Saturday.

Thanks

RE Group

Bongoboots

April 5th, 2009, 11:25 AM

What happened at the meeting yesterday?

dubsolos1

April 5th, 2009, 04:22 PM

Ok, we've decided to meet at RERA tomorrow morning (monday) at 8.30 and present our bid.

The more we are the better.

dubsolos1

April 5th, 2009, 05:34 PM

from ameinfo.com

Dubai Land Department's Director-General Sultan Butti bin Mejren said that an amended Article 11 of Law No13, which regulates the Interim Real Estate Register, will be released in the next two weeks, introducing new provisions for the cancellation of contracts, according to Business 24/7 'The revised article will set new grades for properties and developers. It will be more than the 30-70 rule, which is now applicable,' Mejren said.

Bongoboots

April 5th, 2009, 09:14 PM

Typhoonpilot

April 8th, 2009, 12:05 AM

This is another intersting tactic that a developer in Dubai is taking to both save their project and help their investors:

25th March 2009

Cirrus Developments Announces New Restructuring Proposal Giving Purchasers a Shareholding in Aquarius Gate

- Innovative initiative offers potential solution for purchasers who are defaulted -

Dubai, UAE, March 25th, 2009: Dubai developer, Cirrus Developments LLC, has announced an innovative proposal for its purchasers which offers a way forward for projects in which the majority of purchasers run the risk of being forfeited or are in default.

The 'Restructuring Proposal' (RP), which Cirrus has developed and is now presenting to its purchasers in Aquarius Gate, located on Nakheel's Waterfront project, works on the basis of converting the status of purchasers of units in Aquarius Gate to that of shareholders in the 'New Project Company' which will develop the project. The proposal has already been presented to the Real Estate Regulatory Authority (RERA) and was worked on by Wong Partnership a leading law firm with an extensive experience in real-estate funds.

Behnam Eshragh, Chairman and CEO of Cirrus Developments, said:

"This proposal is for information only and does not nullify the reservation form, the Property Purchase & Sales Agreement and/ or any notices which are in place. It provides a way forward for Aquarius Gate and offers a collaborative solution for the purchasers and the developer.""We have presented the proposal to RERA and they have asked us to discuss it with the purchasers which we are now actively doing. We are confident this proposal will work. It requires significant sacrifice from us as the developer as it is an erosion of profit. However, our proposal will allow us to maintain our relationship with our purchasers which is very important for us, and ensure the project to be completed successfully through a collaborative profit scheme for all purchasers involved in the project."Eshragh says that the projects most affected by the current economic situation are the off plan projects launched in 2008 where prices were at their peak and collections are at or below 30 per cent.

"The purchasers of units in these projects run the greatest risk of default and therefore our proposal is offering a clear solution to be considered,"Eshragh said.

The RP will be limited to the purchasers who agree to pay (or have paid) the installments up to 30 per cent. The remaining amount to reach 30 per cent, which is currently overdue, will be collected over a period of 12 months.

"This is important as it will bring all the purchasers of the project to the same level according to their contractual obligations and will make it fair for the purchasers who are currently not in default of their payments."The benefits for existing customers will be as follows:

They will become part owners (investors) and so have a say in how and when the project is developed

The investors will be entitled to a share in the potential profits which will be paid upon completion of the project

Future commitments will be based on actual cost as opposed to a selling price
The objective of the New Project Company will be to develop and sell the project at a future date, with the potential profit made from the sale distributed to the investors based on their shareholding.

Disclaimer: We would like to stress on the fact that the proposed RP is for information only and for negotiations purposes only, and nothing in the present proposal can be construed or deem to replace or nullify or declare void the reservation form, the PPSA, claim, notice or legal notices or due of any type pertaining to or in relation with the execution or the interpretation of the reservation form, the PPSA and/ or the payments of the instalments for the Project.

TP

dubsolos1

April 9th, 2009, 02:21 PM

an extract from an article in xpress:

Rera: Dealing with defaulters:

“Some investors do not make the payments or refrain from making further payments due to fears that developers may fold up or run away,” Mohammad said.

The Real Estate Court, a civil court, was created in September last year to deal with property disputes arising in the wake of Dubai’s property boom.

Most of the cases involve buyers who have stopped paying for units booked with developers.

* Read related story: Damac 'will pay out over project delays'

“In this case, the developer has to alert Real Estate Regulatory Agency (Rera), which then informs the investor that he has a 30-day period to fulfil his contractual obligations. “If the investor does not fulfil his obligations, the developer has the right to cancel the contract and return the money paid, minus 30 per cent of the amount already paid – and not of the total contract value,” he said.

Pay back clause

“A number of investors wish to discontinue payment and are trying to get back 70 per cent of the amount they paid. As per law, developers are supposed to retain 30 per cent of the amount already paid by the investor,” he added.

The judge’s explanation puts to rest confusion surrounding this clause. Developers used to claim that they may keep 30 per cent of the total contract unit’s price and not 30 per cent of the amount paid, in case an investor withdraws.

The judge also explained that when a purchase agreement signed by the buyer and seller contains provisions that contradict the law, those provisions stand null and void.

“Property laws in Dubai contain general laws. Provisions in the purchase contract are accepted as legal if they do not breach the law,” Mohammad said. Other cases involve delays in construction and hand-over of properties sold off-plan, he explained.

Developers at fault

“We have cases lodged against developers who did not hand over projects on time or have not even started building. In such cases, we look at the contracts individually and then the court decides. If the developer is found to be at fault, we then nullify the contract and order them to repay investors the full amount paid by them.”

Many of the cases lodged by investors have to do with properties sold off-plan, he added.

“A lot of complainants come to the court without purchase contracts. They present only booking forms issued by either developers or property brokers. The court settles contractual disputes. So, in case of booking forms or instalment receipts issued to buyers, these documents are viewed as contracts, but disputes arising out of clauses not mentioned in these documents need to be proved in court,” he said.

full story at:
http://www.xpress4me.com/news/uae/dubai/20012850.html

Spurs

May 13th, 2009, 09:49 AM

for any new people looking for up-to-date information please personal Message me your contact details as a group has been form outside of this forum ( royalestatesinvestorsgroup).

investor7

June 3rd, 2009, 03:30 PM

Hi Guys, im new to this forum. I tried contacting the royalestatesinvestors group but noone is replying. I too am an investor with several properties in the Royal Estates and am looking for a way to get my money back. What has been decided? Can someone please fill me in?

Thanks!

Spurs

June 3rd, 2009, 06:36 PM

Freestyler

June 3rd, 2009, 10:42 PM

join the group http://groups.google.com/group/royalestatesinvestorsgroup

If that doesn't work send the email as Spurs mentioned.

investor7

June 4th, 2009, 10:46 AM

I tried to join the group and this is the reply i got. I then sent an email with no response till now. What do i do? Im really anxious to join.

'Hello, We're writing to let you know that the group that you tried to contact(royalestatesinvestorsgroup) either doesn't exist, or you don't have permission to post to it. There are a few possible reasons why this happened: * You might have spelled or formatted the group name incorrectly.* The owner of the group removed this group, so there's nobody there to contact.* You may need to join the group before being allowed to post.* This group may not be open to posting. If you have questions about this or any other group, please visit the Google Groups Help Center at http://groups.google.com/support. Thanks, and we hope you'll continue to enjoy Google Groups. The Google Groups Team

camelrider

June 20th, 2009, 07:26 PM

Any news,if any progress by ROYAL INVESTORS GROUP? if we still want our money back? the emails have been quiet lately......
Check this out;

One may have a loophole in Law 13 Article 3 which came into force on 14/08/2008

If the developer has not registered the project or your unit within 60 days of the above date then you may get you money back + 9% per annum. There was a case citing this in Gulf News earlier in the year.

You should approach RERA with your case.

Article (3)
1. The Interim Real Estate Register is used to record all disposals of Real Estate
Units off plan. Any sale or other disposition that transfers or restricts title or
any ancillary rights shall be void if not recorded on that Register.
2. Any developer who made a sale or other disposition that transferred or
restricted title prior to the coming into force of this Law should approach the
Department to get it registered in the Real Estate Register or the Interim Real
Estate Register, as applicable, within 60 days after the date on which this Law
came into force.

What do you all think about this? do we have any chance?

Spurs

August 5th, 2009, 11:16 AM

I logged a complaint regardng the developer on RERA's website and have heard nothing back since, did anyone else who did this get a reply??

I did it through the website and logged a complaint:

RERA's website: http://www.rpdubai.com/rpdubai/home.jsp?lang=0#

Complaint category should be: Developer failed to start construction within 6 months of receiving RERAs NOC

Come on RERA sort these crafty buggers out

Spurs

August 5th, 2009, 11:33 AM

I also sent a letter about this to Marwan Bin Ghelaita the CEO @ RERA: marwan@dubailand.gov.ae

I dd this in May 09 and he did initially reply saying he would look into it and get back to me......I didn't hear from him again.

Marwan Bin Ghelaita appointed CEO of Real Estate Regulatory Agency
His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Chairman of The Executive Council, today appointed Marwan Bin Ghelaita as Chief Executive Officer of the Real Estate Regulatory Agency.

Marwan i'm still waiting for your reply!! I have faith that His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum appointed the right man!! Please get back to me

italyindubai

August 7th, 2009, 10:32 AM

Good luck! The chances that Rera will reply or that Dubai will seriously take action against these or others is as high as a snowfall in Dubai. This is a fact and a complaint against their unwillingness and incapacity to face and solve the reality of things.

mary.lina

August 25th, 2009, 07:42 AM

http://www.tradeshoes9.com

camelrider

September 16th, 2009, 02:53 PM

Dubai = NEVERLAND!!!:wtf:

Just a bunch of CHEATERS all along!:deadthrea

dubai12

September 27th, 2009, 05:41 AM

Hai Everyone,

I am also an investor in Royal Estates and now trying to get back the money paid to them.
I am late to join your community. What to be done to join this group?? I tried to send an email to royalestatesinvestorsgroup@gamil.com but bounced. Please let me know the how to join and get the updates.

Thanks
Dubai12

Spurs

September 27th, 2009, 10:11 AM

Email:

royalestatesinvestorsgroup@googlegroups.com

dubai12

September 27th, 2009, 01:11 PM

Spurs

September 29th, 2009, 07:01 AM

Hai Spur

I tried to email to the id given, but got the failure message as given below. What to do next??

Regards

We're writing to let you know that the group that you tried to contact(royalestatesinvestorsgroup) either doesn't exist, or you don't have permission to post to it. There are a few possible reasons why this happened: * You might have spelled or formatted the group name incorrectly.* The owner of the group removed this group, so there's nobody there to contact.* You may need to join the group before being allowed to post.* This group may not be open to posting. If you have questions about this or any other group, please visit the Google Groups Help Center at http://groups.google.com/support. Thanks, and we hope you'll continue to enjoy Google Groups. The Google Groups Team

The group is active as I received an email yesterday and I believe there are over 50/60 investors in it. The only email address I have is:

royalestatesinvestorsgroup@googlegroups.com

I think the moderator of the group has to accept you. I would surgest emailing it again and I will ask the question to the group.

Nothing is easy in Dubai :bash:

dubai12

October 1st, 2009, 06:27 AM

The group is active as I received an email yesterday and I believe there are over 50/60 investors in it. The only email address I have is:

royalestatesinvestorsgroup@googlegroups.com

I think the moderator of the group has to accept you. I would surgest emailing it again and I will ask the question to the group.

Nothing is easy in Dubai :bash:

Thank you very much spur,

The moderator has included me in the group.

Bye

camelrider

October 1st, 2009, 01:52 PM

As an Investor am too in the group, but nothing serious has been done...all in all, we are running against time, in favour of those Cheaters ARISTOCRAT.......

Is our money still in the Escrow Account? been to the site last week, nothing has changed FOR MONTHS!!

Again another example of Investors being cheated!

Spurs

October 23rd, 2009, 12:29 PM

found this in a different thread

Property investor wants her money back

DUBAI : An investor has been left in the lurch after a property sales agency allegedly refused to answer her queries over a delayed project.

XPRESS
Published: 00:00 October 22, 2009

Joan A., 61, a pensioner from South Africa, said she paid a total of Dh95,840 to Avanti Holding between December 2007 and May 2008 for a unit at The Palisades, a Pearl Properties project in Dubai. Her payments represent 20 per cent of the unit price.

But for the last few weeks, the agents have ignored her phone calls and e-mail queries regarding the delay in construction.

"With the extent of the delay on the project [at least two years], investors should at least be offered their invested funds back," she said. On May 13, 2009, Joan lodged a complaint with the Real Estate Regulatory Agency (Rera).

http://gulfnews.com/business/construction/property-investor-wants-her-money-back-1.517552

This is the problem with the unscrupolous developers all over the world. They take the money (hefty deposits on properties) and use it for their own needs. The woman needs to read the contract. Obviously, the fact that they cannot start contruction or deliver the property within some reasonable time is a good enough reason to get the funds back/return the funds. However, the developer or the real estate middlemen are not excited to give it back to the buyer and instead try to force the buyer to purchase a unit in another project. That is their trick.

Most buyers do it because the process becomes too stressful and time consuming. The developers or agents know that they can wear the buyers out.

The woman is 61 and obviously does not have enough energy to deal with these people and just wants her deposit back.

That is the beauty of buying in the USA vs the rest of the world. In the USA the laws are strict and the developers cannot fool around with someone's money the way they can do it in most parts of the world.

Spurs

November 18th, 2009, 06:35 AM

I called Aristrocrat this mornig for an update. They said they were progressing as pe the sales and purchse agreement.

I'm going to go down there and have a face to face meeting with them today

Spurs

November 19th, 2009, 08:19 AM

Met with Suliman who is stating the project will be complete according to the SPA (so handover before dec 2011).

The site looks the same as it always has although Suliman is saying that the contractors are on site and excavation is about to start (at the cost of USD 2,000,000).

He also stated that shoring will start before December.

He said they have had visits to the site from RERA. He said that RERA is satisfied with aristrocrats progress

He offered no discount on the selling price.

He has 7 people in the office doing the administration (he says).

Suliman is sayig he is not aware of any projects being cancelled in Dabai so why should royal estates. The guy is in a dream world.

Freestyler

November 26th, 2009, 07:41 AM

Suliman is sayig he is not aware of any projects being cancelled in Dabai so why should royal estates. The guy is in a dream world.
That is expected. I think they have spent all the money in marketing, they can't even return 50% of the money let alone 70% which they have to give as per RERA rules based on their current construction status. Best thing they can do is start some show off construction, demand more money, if purchaser doesn't pay declare a default then they don't have to pay much money.

Paying is losing more money, because if construction has started then they can keep 25% of OP. Most of their plans were 15/15/70 and 10/10/10/10/10/50. For people with former plan they would lose more if they have paid 15% since after paying 30% maximum they can get is 5%. Risk/reward ratio is highly unfavorable even just to pay more to get the money back if they can't deliver according to the contract. People with later payment plan risk/reward ratio is still not that good to pay more.

IMO, this project is gone.

Spurs

December 17th, 2009, 04:32 PM

Construction has started!!

Could they be doing this to ask for more money, when the money doesnt come its not their fault but the inverstor fault that the project is not going ahead and they walk away sqeeky clean afer 18 months of big fat pay cheques from the Escrow account?

Freestyler

December 17th, 2009, 08:17 PM

Perhaps.

Freestyler

January 26th, 2010, 05:13 PM

Any news?

Spurs

March 10th, 2010, 10:22 AM

Freestyler

March 10th, 2010, 12:20 PM

seems they do appear to be in breach of at least one.

Spurs

March 17th, 2010, 07:48 AM

I have been to RERA this morning. They said they will not discuss legal case for the investor. Investors need to go directly to the courts property section to file their case. I think maybe we are running around in circles here.

Freestyler

April 5th, 2010, 11:11 PM

This project should be under never built.

3smiles1day

April 9th, 2010, 07:43 AM

This was relaesed today:

http://www.business24-7.ae/news/national/terms-set-for-scrapping-dubai-real-estate-projects-2010-03-10-1.67031

In the article it states the following:

As per the legal update, the Land Department can cancel a project in different cases, some of which include where the developer does not initiate construction without justifiable reasons after obtaining required approvals; the developer breaches the Escrow law; the developer fails to commence the project due to gross negligence or the developer declares bankruptcy.

Does Aristocrap breach any of these????

:) I am an investor and I am absolutely not in touch with the Royal Estate project. I only got suspicious when I emailed Aristocrat of the change in our mailing address (we are living in Hong Kong) and nothing happened after more than 1 month....

So guys, what's the latest?

Spurs

April 13th, 2010, 07:22 AM

http://gulfnews.com/business/propert...jects-1.609353

"Dubai: Property developers whose projects never got off the ground due to their "failure or negligence" are not allowed to keep any funds prepaid by individual investors, dictates a new law by Dubai government, XPRESS has learnt.

Dubai Executive Council's Decree No 6 of 2010, say government and industry officials, will go a long way toward transparency for a market that has witnessed a 50 per cent decline in real estate values.

It also spells out new rules to help purchasers who entered boom-time sales contracts with developers, but came up empty-handed awaiting real estate projects that never started.

"This is one more step towards transparency in the real estate market," said Mohammad Sultan Thani, Assistant Director-General of Excellence and Organisational Governance, Dubai Land Department. "A lot of customer rights are included in this."

According to the newly amended regulations of Law No 13 of 2008, a copy of which was obtained by XPRESS, a sliding scale of refunds will guide both developers and investors towards settlements (see illustration).

The new law instructs developers to notify a project's investors in writing to "abide by his contractual obligations".

Developers must then wait for 30 days for the contract to be fulfilled by each investor after which a developer can "rescind the contract" and return a portion of the investor's monies according to the sliding scale.

Legal provisions

If authorities deem that a developer delayed a project due to "his failure or negligence", he is not eligible to retain any of the original project funds held in trust and must return all monies in full.

If, however, a developer is found not to have started a development project due to "reasons out of his control", he can ask the land department to rescind the contract with purchasers and retain 30 per cent of the value of sums paid by purchasers.

A developer is "deemed negligent", provisions dictate, when he delays taking over the land, obtaining approvals "to initiate the project", getting plans and designs approved in writing, "delays preparing the project for structural activities", fails to register the project at the Land Department, fails to disclose project financial data to the department and sells off-plan without permission from the master developer.

The regulations also explain what is considered "beyond the developer's control" as including expropriation of project lands for public need, if service networks are found in the project lands and if the master developer changes the site borders affecting the sub-developer's site plan.

When a project is "cancelled" by the Land Department, an auditor will be appointed at the expense of the developer and a trustee of the escrow account will be asked to "repay the sums deposited in the account… to their first owners [purchasers] within a period of no more than 14 days commencing from the date of cancellation," the law states.

If the trust account is short of cash, the offending developer will have at least 60 days to pay or the land "department shall then take whatever procedures necessary to protect purchasers' rights, including referring the matter to the competent judicial authorities", the law states.

3smiles1day

April 19th, 2010, 05:24 AM

Excellent info SPURS!!!

I am based in Hong Kong and getting updates on the project is just not too easy.

It is exactly a year now since I signed the Amendment to the Sale and Purchase Agreement with Aristocrat in March 2009. I guessed it was silly of me to do that without doing some research. Out of the 60 installments, I paid the first installment and nothing else has been paid so far. What should I do now?

I am planning to stopover Dubai for 2 days next month and I thought of visiting the site and meet with the developer.

http://gulfnews.com/business/propert...jects-1.609353

"Dubai: Property developers whose projects never got off the ground due to their "failure or negligence" are not allowed to keep any funds prepaid by individual investors, dictates a new law by Dubai government, XPRESS has learnt.

Dubai Executive Council's Decree No 6 of 2010, say government and industry officials, will go a long way toward transparency for a market that has witnessed a 50 per cent decline in real estate values.

It also spells out new rules to help purchasers who entered boom-time sales contracts with developers, but came up empty-handed awaiting real estate projects that never started.

"This is one more step towards transparency in the real estate market," said Mohammad Sultan Thani, Assistant Director-General of Excellence and Organisational Governance, Dubai Land Department. "A lot of customer rights are included in this."

According to the newly amended regulations of Law No 13 of 2008, a copy of which was obtained by XPRESS, a sliding scale of refunds will guide both developers and investors towards settlements (see illustration).

The new law instructs developers to notify a project's investors in writing to "abide by his contractual obligations".

Developers must then wait for 30 days for the contract to be fulfilled by each investor after which a developer can "rescind the contract" and return a portion of the investor's monies according to the sliding scale.

Legal provisions

If authorities deem that a developer delayed a project due to "his failure or negligence", he is not eligible to retain any of the original project funds held in trust and must return all monies in full.

If, however, a developer is found not to have started a development project due to "reasons out of his control", he can ask the land department to rescind the contract with purchasers and retain 30 per cent of the value of sums paid by purchasers.

A developer is "deemed negligent", provisions dictate, when he delays taking over the land, obtaining approvals "to initiate the project", getting plans and designs approved in writing, "delays preparing the project for structural activities", fails to register the project at the Land Department, fails to disclose project financial data to the department and sells off-plan without permission from the master developer.

The regulations also explain what is considered "beyond the developer's control" as including expropriation of project lands for public need, if service networks are found in the project lands and if the master developer changes the site borders affecting the sub-developer's site plan.

When a project is "cancelled" by the Land Department, an auditor will be appointed at the expense of the developer and a trustee of the escrow account will be asked to "repay the sums deposited in the account… to their first owners [purchasers] within a period of no more than 14 days commencing from the date of cancellation," the law states.

If the trust account is short of cash, the offending developer will have at least 60 days to pay or the land "department shall then take whatever procedures necessary to protect purchasers' rights, including referring the matter to the competent judicial authorities", the law states.

Spurs

April 19th, 2010, 08:02 AM

It wont hurt visiting the site, please take some pic's and put them on this thread.

3smiles1day

April 24th, 2010, 06:36 AM

It wont hurt visiting the site, please take some pic's and put them on this thread.

You bet I will.

3smiles1day

May 12th, 2010, 04:44 PM

Any news ? I also have an office their and want to know what is happening ? are you people going to do something about this ?

There is not much activity so far as you might have noticed. I hope the fire can be kept burning.

3smiles1day

May 13th, 2010, 01:13 AM

Less people are keen in getting their money back nor suggesting a group effort to approach Aristocrat. I wonder why! What do you mean ?

Spurs

May 13th, 2010, 09:38 AM

Did you get any pic's 3smiles1day???

3smiles1day

May 14th, 2010, 04:52 AM

Did you get any pic's 3smiles1day???

I will be there next week. I will drop by the site office at the same time. Any questions that you guys might want me to ask Aristocrat?

PJA Lover

May 14th, 2010, 02:27 PM

I will be there next week. I will drop by the site office at the same time. Any questions that you guys might want me to ask Aristocrat?

Hi, well there is more than one question, but the most important one is, how are they going to deliver by the end of this year when they have'nt started yet :ohno: also the same by the end of next year !

Isn't it wise that they refund people money because they know and we know that this project is not happening and will not happen and a clear breach of contract from their side is happening.

Please let us know what will you see (photos will be very helpful) and the outcome of your meeting, wish you best of luck.

3smiles1day

May 20th, 2010, 12:06 PM

got some pictures of DIP! How do I upload and share these pics?

PJA Lover

May 20th, 2010, 06:18 PM

got some pictures of DIP! How do I upload and share these pics?

It's easy my friend, go to "http://tinypic.com" and upload the pictures there, you will get http addresses for these photos, copy and paste the addresse's here and it will show.

So what happened to the meeting with them, any good ?

3smiles1day

May 21st, 2010, 03:47 AM

It's easy my friend, go to "http://tinypic.com" and upload the pictures there, you will get http addresses for these photos, copy and paste the addresse's here and it will show.

So what happened to the meeting with them, any good ?

I was not able to upload the pics and the message was "This IP address has been banned for violating our Terms of Use".

In a nutshell, they expect the project to be completed by end 2011 ( I think the original S&P agreement says July 2010). I am not any expert in property development and judging by what I saw at the site, it is not going to happen end 2011. I could only see a few excavators and no foundations or structures whatsoever could be seen. I opine there are some, if not several buyers, who defaulted and empty units are available for sale. They are coming up with other payment plans to entice investors.

dxbinv

May 21st, 2010, 08:00 AM

I think that's right 3smiles - there seems no way it will be finished on time. Did you actually speak to the guys there? So are they now offering better purchase plans for new investors?!

PJA Lover

May 21st, 2010, 12:35 PM

I was not able to upload the pics and the message was "This IP address has been banned for violating our Terms of Use".

In a nutshell, they expect the project to be completed by end 2011 ( I think the original S&P agreement says July 2010). I am not any expert in property development and judging by what I saw at the site, it is not going to happen end 2011. I could only see a few excavators and no foundations or structures whatsoever could be seen. I opine there are some, if not several buyers, who defaulted and empty units are available for sale. They are coming up with other payment plans to entice investors.

Obviously they have done some excavators in order to show that they have started the construction, but everybody knows this is an old trick and does not mean that there is a real work going on.

The project is not even registered with RERA yet ! check RERA website.

Our contract shows a completion date in July 2010, which is impossible that it will be handed by this date, also it shows one year tolerance, after that the contract shows clearly that a refund + interest should be paid back to the investor.

It is very obvious that this project will not be completed for at least 3-4 years (if not cancelled).

There is no way that they can find buyers now, so to agree with the current investors about a refund system seems the only way out for everyone.

Any thought's of how can we work together on this ?

Spurs

May 22nd, 2010, 08:08 AM

Iv paid 20% towards a studio and I would be very negotiable about the refund o funds. If they said to me right now they would offer me a 50% refund I would except and be done of this headache.

PJA Lover

May 22nd, 2010, 07:12 PM

Iv paid 20% towards a studio and I would be very negotiable about the refund o funds. If they said to me right now they would offer me a 50% refund I would except and be done of this headache.

They will not come and give you a refund on a golden plate ! you and everybody have to act now to get a refund.

Freestyler

May 22nd, 2010, 07:13 PM

dxbinv

May 22nd, 2010, 08:09 PM

The best option would be if rera cancelled the project.

They are not willing to discuss alternative payment plans/pleasing current investors and I would guess they are just hoping they can retain everyone's 20% (more in some people's case) and get away without finishing the project.

Has anyone given them pdcs?

Spurs

May 23rd, 2010, 07:45 AM

PJA Lover

May 23rd, 2010, 06:35 PM

me too.

http://www.uaeforum.org/ <<< what is this link about ? is there a link in this forum relates to the subject here ?

Freestyler

May 23rd, 2010, 09:00 PM

http://www.uaeforum.org/ <<< what is this link about ? is there a link in this forum relates to the subject here ?

Thats my website, u can start the topic if you want. I don't mind.

3smiles1day

May 26th, 2010, 12:53 PM

I think that's right 3smiles - there seems no way it will be finished on time. Did you actually speak to the guys there? So are they now offering better purchase plans for new investors?!

Yes. An offer was made to me and other investors to exchange my office unit for a residential unit of the same value. It was told to me by the people there that the residential units get higher rental yield and are easy to find tenants. Not sure how much truth there is or there could be other hidden agendas.

3smiles1day

May 26th, 2010, 01:05 PM

The pictures that I took have nothing much to show...sand, a few excavators and an empty plot of land. I have not been able to post them and if you are keen to view them, it has to be sent through email.

Spurs

July 11th, 2010, 10:30 AM

Anyone spoken to Aristocrat recently? Or been to the site?

At what point do they admit this is not going to happen?

maildubai101

July 12th, 2010, 03:59 PM

Just saw this news...its about some real estate recovery scheme.
http://www.eyeofdubai.com/v1/news/newsdetail-45947.htm

quoted from this news "Once an application for RERS is approved by Smith & Ken, the company invites the investor to choose a new property, and once it is done, Smith & Ken deducts the amount the investor has already paid from their new apartment, office space or plot of land."

might be worth checking out :bowtie:

jjason1964

July 13th, 2010, 07:51 PM

jjason1964

July 13th, 2010, 07:55 PM

I spoke to Smith and Ken today and this RERS scheme is exactly what they say it is, allows you to consolidate into a new RERA approved projects.............there is hope !

Sorry, forgot to paste the link............

http://www.smithandken.com/dubai-real-estate-recovery-scheme

3smiles1day

July 17th, 2010, 09:04 AM

Anyone spoken to Aristocrat recently? Or been to the site?

At what point do they admit this is not going to happen?

I've been to the site mid May 2010 and took some pictures. The developer told me that the project will be completed by end of 2011. I seriously doubt that they can complete by that time.

methodinmadness

July 19th, 2010, 10:36 AM

Ref. Smith & Ken...if it sounds too good to be true then it probably is!

Fact: Royal Estates will in no way be able to complete the project by Nov 2011...the cut off date.

They will ask you to swop your investment over to a town house because this is the only part of the project that has commercial viability. I am sure they will come up with seemingly attractive offers... my advice..stay well away.

Fact: RERA has had all ongoing projects independently benchmarked. This is a clever way of RERA putting a noose around developers necks. Royal Estates is 'ongoing but delayed'. The noose is tight and will only get tighter.

My main concern is with the banks.. they have our money. Imagine if the banks have to pay back all the deposits? Our deposits are their cash flow!

3smiles1day

July 19th, 2010, 03:58 PM

Just read this article dated May 5, 2010: Dubai officials get tough on developers who have not started projects.

http://www.propertywire.com/news/middle-east/-new-tough-dubai-approach-201005054099.html

maildubai101

July 22nd, 2010, 08:22 AM

Spurs

July 22nd, 2010, 08:36 AM

methodinmadness

August 1st, 2010, 08:53 AM

If you choose to go with the above scheme does Aristocrat transfer you out of royal estates.... if so Aristocrat are giving you permission to leave their project and not pay them the outstanding amount on their project???

Now you can see the problem.. Its extremely unlikely Aristocrat will give their permission. Smith & Ken must know this... sign with them and double your debt!

Nataelchibek

August 18th, 2010, 12:32 PM

after reading the posts in the forum i decided to get of the contract and try to get my money back... does anyone know what is the procedure for doing this and who i could contact for help in this area???

3smiles1day

August 25th, 2010, 07:52 AM

If you choose to go with the above scheme does Aristocrat transfer you out of royal estates.... if so Aristocrat are giving you permission to leave their project and not pay them the outstanding amount on their project???

You are right SPURS! I was in Dubai from Aug 5 to Aug 11 and I tried to arrange for a meeting with KEN & SMITH on their proposed Real Estate Recovery Schemes.

2 weeks before this trip, I made contact with the company via their website and a Mr. Jeff Rutter called me. I emailed him and asked him those questions with regard to Aristocrat giving permission to leave the project. I also informed him of my trip to Dubai and that we should meet at his office.

Well, you guessed it. He did not reply my email nor did he answer his mobile when I called him a dozen times from Dubai. I called the company and they conveniently said that he had left the company. I was referred to Edward when I requested to speak with the staff who has taken over his duties. Edward said he will call me back before the end of that day. He never did. I reckoned it was not worth my time to call them again.

In conclusion, I opined it was a scam and an entrapment to get us to purchase another property from Ken & Smith without any exit strategy for the buyers to get out of their contracts with Aristocrat. At the end of the day, Ken & Smith gets the commission from the developer for the property we purchase and we are still stuck with Aristocrat. :bash: :nuts:

yomura

September 5th, 2010, 01:09 PM

You are right SPURS! I was in Dubai from Aug 5 to Aug 11 and I tried to arrange for a meeting with KEN & SMITH on their proposed Real Estate Recovery Schemes.

2 weeks before this trip, I made contact with the company via their website and a Mr. Jeff Rutter called me. I emailed him and asked him those questions with regard to Aristocrat giving permission to leave the project. I also informed him of my trip to Dubai and that we should meet at his office.

Well, you guessed it. He did not reply my email nor did he answer his mobile when I called him a dozen times from Dubai. I called the company and they conveniently said that he had left the company. I was referred to Edward when I requested to speak with the staff who has taken over his duties. Edward said he will call me back before the end of that day. He never did. I reckoned it was not worth my time to call them again.

In conclusion, I opined it was a scam and an entrapment to get us to purchase another property from Ken & Smith without any exit strategy for the buyers to get out of their contracts with Aristocrat. At the end of the day, Ken & Smith gets the commission from the developer for the property we purchase and we are still stuck with Aristocrat. :bash: :nuts:

What is happening these days is that prices of property prices have fallen drastically and there are no buyers even for ready properties !

So the real estate agents are trying to sell you off-plan properties or ready properties by this consolidation scheme! They say that they will take credit of the payments made by you to the developer and ask excess amount from you. This excess amount is equal or more than the current property that you are buying.

So in efect you are thinking that you are salvaging your earlier investment which is not the case......

Spurs

September 19th, 2010, 01:20 PM

Spurs

September 27th, 2010, 12:03 PM

They will not see 1 dirham more of my money! They also attached a payment plan from RERA, it was dated 03/02/10 - Why has it taken this long to get this to us???????

They are playing BIG games here people!

Dear Valued Customers,

We, M/s Aristocrat Star Investment would like to thank you all for your unfailing patience and support during these strenuous times and would like to present a comprehensive Progress Report on construction and compliance done by us in our role as the Developer, in compliance with RERA and Land Department guidelines .

Please note that the construction of the project is in full progress :lol:. We are re doubling our efforts to ensure that we fulfill our commitment towards our valued customers in the best possible time. We have obtained all necessary permissions from the concerned authorities and have done the compliances with regard to the same as per the procedures prescribed by RERA.

In the light of the various feedback we have received from our valued investors and keeping in mind the current market crisis we are presenting to you the option to strengthen your faith on us and make you feel more secure about your investments with us .We sincerely hope that you take advantage of this options if the same suits you and inform your intend so as to discuss further.

We would also like to offer you the Construction linked Payment Plan duly approved by the Land Department (RERA) for your kind consideration in the event you wish to switch to a RERA approved plan.

Please note that failure to receive acknowledgement enclosed herewith within next 20 days from date of this letter with respect to switch over to the RERA approved payment plan shall force us to assume that you desire to abide with the existing payment plan signed by yourself. In such eventuality your payment shall fall due as per the old payment plan.

Please note that, having already incurred huge expenses on a fully paid Plot and the construction progress attained till date, we shall be forced to initiate cancellation proceedings in the event of your non-payment or non - cooperation disenabling us to keep up to our commitment.

As you are aware we have a huge development comprising of villas, offices and residential apartments.
We are more than happy to accommodate shift over’s or consolidations between our developments at agreeable rates on mutual discussions considering the Real Estate market down fall with a view to minimize any loss to our investors.
We sincerely hope that you shall extend all you cooperation and we look forward to your feedback on the said proposals if deemed necessary by you.
Customers are kindly reminded to update their contact information when sending us the confirmation of your choice of the payment plan to avoid being excluded from receiving periodical updates regarding the project.

We would also request you to clear the outstanding payment till date within 30days from the date of this notice and consider this as a final reminder notice for payment. We thank you for your prompt payment and continued support.

Thanking you.

Purchasers Acknowledgement
I,………………………………………………………………………............,address……………………………………………………………………………………………, do hereby express my interest in receiving formal documentation from M/S Aristocrat Star Investment in relation to the revised construction milestone payment plan being offered by M/S Aristocrat Star Investment in respect of my purchase on ‘The Royal Estate’ , Dubai, United Arab Emirates
Signed by: ………………………………
Signature:
Dated:

3smiles1day

September 27th, 2010, 03:58 PM

I drove past Royal Estates last weekend. The plot that was flattened and prepared (with our money) is now growing plants and weeds. If this project by some minute chance did go ahead the land would need to be prepared again (with our money). :ohno:

Spurs-did you take any pictures? I took some pics in May and we can share the pics and see if the developer did make any progress.

3smiles1day

September 27th, 2010, 04:01 PM

[QUOTE=Spurs;64376765]They will not see 1 dirham more of my money! They also attached a payment plan from RERA, it was dated 03/02/10 - Why has it taken this long to get this to us???????

They are playing BIG games here people!

I had a face to face discussion with Aristocrat in May and they never brought up this payment plan from RERA, dated 03/02/10. I was offered to trade my office unit for an apartment or town house.

Spurs

September 27th, 2010, 04:19 PM

Spurs-did you take any pictures? I took some pics in May and we can share the pics and see if the developer did make any progress.

Taken on the 18th Sept 2010

http://i52.tinypic.com/e5sr2e.jpg

http://i54.tinypic.com/qyu6mo.jpg

Typhoonpilot

September 29th, 2010, 04:01 AM

I'm out of the UAE until the 9th. Can't access our group so I am responding here. I think the only way to respond to this is via a lawyer.

They're trying to show us in default, when in fact they are the ones who are in default. It's taken them two years to build a dilapidated cardboard office building on site and grow some weeds in the dirt.

We tried to negotiate with them in good faith over two years ago and they didn't want to listen. Now they are trying to pull a fast one and steal our money instead of giving us refunds out of the escrow account ( if there is even any money in it ).

Typhoonpilot

amian

September 29th, 2010, 06:39 PM

Taken on the 18th Sept 2010

http://i52.tinypic.com/e5sr2e.jpg

http://i54.tinypic.com/qyu6mo.jpg

These images are not the true pictures of the progress of this project. i have been going to the site for the last one year and looking at the progress achieved over a period of time. Yes work was slow and at times at a stand still, but there is progress. Last i went there was end of JULy and the excavation was complete and piping was being laid at that time. From where the offices are you cant see the progress. You have to go in from the side entrance where the earth moving machinery is located. The developer took me to that area in their jeep and when i was right at the spot did i realize that there was progress albeit not timely as they had promised. I will be heading there end of Oct or early Nov and see the progress.
I talked to the developer today and had a very frank discussion with them. I feel that the project will be completed but i think it will be delayed. How much delay only time will tell. I discussed with them and raised my concerns about the progress and even the worse case scenario of the project not being completed. I raised issues of a large chunk of buyers opting out if their new terms and conditions did not suit them. Btw they will be lowering the prices to 700-750 dirhams per sq foot for the town houses and the apartments. I do not think they are going ahead with the commercial units. I made them aware that they have to do with the present set of buyers and they wont be able to get new buyers in case of default. So if this eventuality happened what would be their line of action. They told me that even if they have to build half the units and the rest default they will still go ahead with the project and hand over half the units ( Here iam talking about townhouses). I made them aware that maybe their new proposed price of 700-750 is still bit high to entice the existing buyers to dish out more money. I was personally thinking in the range of 600-650 per sqfoot. But they said that range is not possible for them. So anyways guys they are bringing prices down ( something is better than nothing). Out of the people who have just paid 15percent of the total amount how many will still like to continue iam not sure. But yes if i was in that position i would be thinking of defaulting also. But iam in a higher bracket and for me to default for the time being is not a wise decision. Now the golden question is how many will come and take this new bait.

amian

September 29th, 2010, 06:48 PM

Also what would be the prevalent price range for greens community which is adjacent to this development?

Spurs

October 1st, 2010, 10:40 AM

These images are not the true pictures of the progress of this project. i have been going to the site for the last one year and looking at the progress achieved over a period of time. Yes work was slow and at times at a stand still, but there is progress. Last i went there was end of JULy and the excavation was complete and piping was being laid at that time. From where the offices are you cant see the progress. You have to go in from the side entrance where the earth moving machinery is located. The developer took me to that area in their jeep and when i was right at the spot did i realize that there was progress albeit not timely as they had promised. I will be heading there end of Oct or early Nov and see the progress.
I talked to the developer today and had a very frank discussion with them. I feel that the project will be completed but i think it will be delayed. How much delay only time will tell. I discussed with them and raised my concerns about the progress and even the worse case scenario of the project not being completed. I raised issues of a large chunk of buyers opting out if their new terms and conditions did not suit them. Btw they will be lowering the prices to 700-750 dirhams per sq foot for the town houses and the apartments. I do not think they are going ahead with the commercial units. I made them aware that they have to do with the present set of buyers and they wont be able to get new buyers in case of default. So if this eventuality happened what would be their line of action. They told me that even if they have to build half the units and the rest default they will still go ahead with the project and hand over half the units ( Here iam talking about townhouses). I made them aware that maybe their new proposed price of 700-750 is still bit high to entice the existing buyers to dish out more money. I was personally thinking in the range of 600-650 per sqfoot. But they said that range is not possible for them. So anyways guys they are bringing prices down ( something is better than nothing). Out of the people who have just paid 15percent of the total amount how many will still like to continue iam not sure. But yes if i was in that position i would be thinking of defaulting also. But iam in a higher bracket and for me to default for the time being is not a wise decision. Now the golden question is how many will come and take this new bait.

Hi Amian,

The developer is desperate and dillusional. I fear they have shown you work that Palisadies have done as the plot for Royal estates is directly behind their cabins.

Dont throw good money after bad!

amian

October 2nd, 2010, 04:57 AM

Hi Amian,

The developer is desperate and dillusional. I fear they have shown you work that Palisadies have done as the plot for Royal estates is directly behind their cabins.

Dont throw good money after bad!

iam 100percent sure its theirs. Palisades is to the other side. Iam talking about entering from the sides from the spinneys side. As i earlier said i would have loved to be in a postion to step out of the deal but too much has gone in and for me that is not an option right now.

Tell me something. Your fear is that the project will not be finished or the price of the project. I know we all were here when the going was good and buying right and left but now since that is not the case so we have changed our line of action. I understand a lot of us are overexposed in this due to the way we went ahead and approached these investments, but now that we are stuck what is our reservation? Are the reservations related to completion of the project or is it the price or is it both?

Spurs

October 2nd, 2010, 07:50 AM

iam 100percent sure its theirs. Palisades is to the other side. Iam talking about entering from the sides from the spinneys side. As i earlier said i would have loved to be in a postion to step out of the deal but too much has gone in and for me that is not an option right now.

Tell me something. Your fear is that the project will not be finished or the price of the project. I know we all were here when the going was good and buying right and left but now since that is not the case so we have changed our line of action. I understand a lot of us are overexposed in this due to the way we went ahead and approached these investments, but now that we are stuck what is our reservation? Are the reservations related to completion of the project or is it the price or is it both?

My reservation is that all I have heard from ASI is lies. Its supposed to be complete in Dec this year! I dread to think if these guys actually built this project what the standard of quality would be like......They would certainly cut every corner posible.

methodinmadness

October 2nd, 2010, 11:36 AM

My reservation is that all I have heard from ASI is lies. Its supposed to be complete in Dec this year! I dread to think if these guys actually built this project what the standard of quality would be like......They would certainly cut every corner posible.

I completely agree. Anyone willing to pay them more money must be dillusional unless of course you have enough money and dont mind throwing it away! The commercial part of this project (offices, hotel, shops etc.) will not go ahead. Aristocrat will try to make you believe in trading your commercial investment for an appartment or town house. Simple... dont do it. You will loose even more money. They already have and will continue to default on this project. They are only interested in getting their money back...not yours! Wake up people!

methodinmadness

October 2nd, 2010, 11:51 AM

They are having a laugh! How many investors do you think actually received this letter? My guess... only about 20%. So how can they actually say that investors must acknowledge their letter within 20 days!

I think its time Aristocrat Star and its owners were investigated here or in the UK where they hide!

They will not see 1 dirham more of my money! They also attached a payment plan from RERA, it was dated 03/02/10 - Why has it taken this long to get this to us???????

They are playing BIG games here people!

Dear Valued Customers,

We, M/s Aristocrat Star Investment would like to thank you all for your unfailing patience and support during these strenuous times and would like to present a comprehensive Progress Report on construction and compliance done by us in our role as the Developer, in compliance with RERA and Land Department guidelines .

Please note that the construction of the project is in full progress :lol:. We are re doubling our efforts to ensure that we fulfill our commitment towards our valued customers in the best possible time. We have obtained all necessary permissions from the concerned authorities and have done the compliances with regard to the same as per the procedures prescribed by RERA.

In the light of the various feedback we have received from our valued investors and keeping in mind the current market crisis we are presenting to you the option to strengthen your faith on us and make you feel more secure about your investments with us .We sincerely hope that you take advantage of this options if the same suits you and inform your intend so as to discuss further.

We would also like to offer you the Construction linked Payment Plan duly approved by the Land Department (RERA) for your kind consideration in the event you wish to switch to a RERA approved plan.

Please note that failure to receive acknowledgement enclosed herewith within next 20 days from date of this letter with respect to switch over to the RERA approved payment plan shall force us to assume that you desire to abide with the existing payment plan signed by yourself. In such eventuality your payment shall fall due as per the old payment plan.

Please note that, having already incurred huge expenses on a fully paid Plot and the construction progress attained till date, we shall be forced to initiate cancellation proceedings in the event of your non-payment or non - cooperation disenabling us to keep up to our commitment.

As you are aware we have a huge development comprising of villas, offices and residential apartments.
We are more than happy to accommodate shift over’s or consolidations between our developments at agreeable rates on mutual discussions considering the Real Estate market down fall with a view to minimize any loss to our investors.
We sincerely hope that you shall extend all you cooperation and we look forward to your feedback on the said proposals if deemed necessary by you.
Customers are kindly reminded to update their contact information when sending us the confirmation of your choice of the payment plan to avoid being excluded from receiving periodical updates regarding the project.

We would also request you to clear the outstanding payment till date within 30days from the date of this notice and consider this as a final reminder notice for payment. We thank you for your prompt payment and continued support.

Thanking you.

Purchasers Acknowledgement
I,………………………………………………………………………............,address……………………………………………………………………………………………, do hereby express my interest in receiving formal documentation from M/S Aristocrat Star Investment in relation to the revised construction milestone payment plan being offered by M/S Aristocrat Star Investment in respect of my purchase on ‘The Royal Estate’ , Dubai, United Arab Emirates
Signed by: ………………………………
Signature:
Dated:

amian

October 2nd, 2010, 06:14 PM

I completely agree. Anyone willing to pay them more money must be dillusional unless of course you have enough money and dont mind throwing it away! The commercial part of this project (offices, hotel, shops etc.) will not go ahead. Aristocrat will try to make you believe in trading your commercial investment for an appartment or town house. Simple... dont do it. You will loose even more money. They already have and will continue to default on this project. They are only interested in getting their money back...not yours! Wake up people!

Agreed the commercial part of project is not going through. They have said it themselves. But isnt that the case with all developments which are going through now a days. All the developers want to get out of the shit they are in and recover their money ( at the expense of the investors). We all lose in the end with or without defaulting. So one has to choose between which is a better option for each individual. If you have paid 15% than perfectly fine to leave that investment. But people like me who have paid much more are not in that position to do so ( it will be stupidity to do so for people like me now). I would rather have the project completed at 700 dirhams per sq feet rather than lose the money i have put in.

My loss is less if i go and pay for it rather than letting it go at this stage. So for me its better of the two evils.

Freestyler

October 3rd, 2010, 03:42 AM

Agreed the commercial part of project is not going through. They have said it themselves. But isnt that the case with all developments which are going through now a days. All the developers want to get out of the shit they are in and recover their money ( at the expense of the investors). We all lose in the end with or without defaulting. So one has to choose between which is a better option for each individual. If you have paid 15% than perfectly fine to leave that investment. But people like me who have paid much more are not in that position to do so ( it will be stupidity to do so for people like me now). I would rather have the project completed at 700 dirhams per sq feet rather than lose the money i have put in.

My loss is less if i go and pay for it rather than letting it go at this stage. So for me its better of the two evils.
Why not ask them to allow credit notes. It will lower the cost for people like you and help other get out of the investment at a certain loss. Might work for ASI too since more people will be willing to pay when they are getting credit at a discount.

3smiles1day

October 5th, 2010, 02:55 AM

My reservation is that all I have heard from ASI is lies. Its supposed to be complete in Dec this year! I dread to think if these guys actually built this project what the standard of quality would be like......They would certainly cut every corner posible.

When I was there in May this year, I told the developer that they were supposed to complete the project by Dec 2010. They disagreed and said that they have up to end of 2011 to complete the project. I did not bother to check the S&P agreement to confirm this. However, I told them that at the rate they are going I have doubts that they are going to complete the project by end of 2011. I had some pictures taken that time as a reference and since I travel there 4-5 times a year I can always drop by to check on the progress.

Spurs

October 6th, 2010, 12:20 PM

Here it is..Law 8 of 2007 Article (9) Point 1 clearly states that : “The Guarantee Account shall be opened in the name of the project and the proceeds shall be used exclusively for the purposes of constructing the real estate project. The Developer’s creditors are not allowed to attach the money deposited in the Guarantee Account”.

"the proceeds shall be used exclusively for the purposes of constructing the real estate project".

How can we find out what money is left in the account??? I think this would be a BIG clue to where we stand!

3smiles1day

October 16th, 2010, 11:26 AM

On a sultry June evening in 2007, more than 100 people camped out at the offices of Emaar, a prestigious Dubai property developer, to ensure that they would land coveted spot in a gleaming new skyscraper scheduled to open this year near the Burj Khalifa, the world’s tallest building.

Today, the property, designed by the New York architect, Frank Williams (who died in February), is like a number of others around Dubai-little more than a foundation. Its value has plunged by more than 40 per cent since 2008, after the collapse of Dubai’s eal estate boom. “It’s really a disaster, the situation in Dubai,” said Silvia Turrin, an agent who bought into the property, 29 Boulevard and has been unable to get her money out. “It’s not like in the Western countries. It’s very difficult to exit here if there‘s a problem. And we’ll never get our money back, but now we’re stuck dealing with this hole.”

Dubai lured people to a gold rush in properties at the height of its real estate boom-including business and political leaders from Afghanistan who invested the deposits from Kabul Bank, on of the country’s largest. The near-collapse of the bank in September was largely a result.

At the time, few asked if there was a legal framework for resolving potential disputes. Now, with the glitter gone, interviews with investors, legal specialists and real estate analysts here show that many who bought in are finding it hard to get out.

Despite the construction delay, Emaar is still holding the down payments of as much as 80 per cent that were required to secure an apartment. Turrin and other property holders said. And Dubai’s opaque property laws have made it virtually impossible for those who bought in to walk away, even as interest accumulates on their construction loans.

Emaar acknowledged that 29 Boulevard was still “under construction” but said that it upheld transparency standards and had “taken several proactive measures to address the concerns of investors on developments that are in the pipeline.”

It said those measures included the option of buying other completed properties. Investors, however, say the properties being offered are in some cases smaller, less attractive and more expensive than those they had agreed to buy.

Emaar is not the only developer with such problems. Scores of other buildings around Dubai are well past their delivery dates or have het to be started. Apartment buyers who made down payments for property construction do not know what is happening with their money, these people said. Bank loans on undelivered property often cannot be forfeited, and borrowers have had to pay higher interest and have been unable to walk with from the mortgages.

“The rules of the game are definitely opaque here,” said an investor who has bought several properties in Dubai and declined to be named. “In the United States, I would know my legal position much more clearly and could take actions if necessary.”

Most developers have also thwarted the formation of owners’ associations that could take control of the building finances and ensure the transparent management of condo fees, which many owners say developers use to take in more money. Dubai has compressed decades’ worth of real estate developments into the past 15 years. But the legal framework for resolving property disputes, and the nature of the contracts themselves, were still as incomplete as many of the buildings, analysts said.

“Dubai has evolved rapidly in just a short time,” said Graham Coutts, who is in charge of Middle East management services at Jones Lang LaSalle, a global real estate services firm. “The legal system is evolving with it.”

Still, concerns about resolving disputes are mounting, even as developers struggle to find foreign and domestic investors for what has become one of the largest property surpluses in the world.

Commercial real estate vacancies in particular are still rising. Although about 70 per cent of empty lots from three years ago had been filled, real estate construction since then had far exceeded the purchases, more than doubling the amount of vacant space available, said Timothy Trask, the director of corporate ratings at Standard & Poor’s in Dubai.

Dubai is not the first place where soaring ambitions outpaced reality. Shanghai, Singapore and Hong Kong all were overbuilt in relatively short times. But these cities were able to trim their real estate surpluses by greatly reducing construction until demand picked up.

Building is continuing in Dubai, however, even though potential corporate tenants are showing little interest in developments like the Dubai Silicon Oasis or the Jumeirah Lake Towers, a complex of more than 85 buildings that looks like a Las Vegas version of Lower Manhattan planted on the fringes of the desert. Jones Lang LaSalle recently proposed that some buildings should simply be sealed for the next five years until buyers returned.

Even if investors eventually responded t slumping prices, they would still have to be wary of contracts and vigilant about how legal disputes in Dubai were resolved, said Ludmila Yamalova, a managing partner at the law firm HPL Plewka & Coll, who handles lawsuits for individual and commercial property investors.

She recently sued, Damac Properties, one of Duabi’s biggest builders, on behalf of a German investor who claimed that from 2006 on, he invested nearly US$10 million in five properties that were not delivered on time. The investor, Lothar Hardt, also claims the developer mismanaged escrow accounts related to the properties and he lost money by signing contracts with retailers that planned to set up shop in the buildings.

Yamalova is now trying to bring suit in court run by the Dubai International Financical Centre, a government body set up to attract investors, which operates largely on British-based law and is independent of the opaque Dubai court system, where cases are conducted in Arabic and plaintiffs must go through local Emirati representatives.

Coutts, the Jones Lang LaSalle executive, said that because Dubai had grown so fast, the government was learning on the job.

In more mature markets, “you had 200 years to develop a legal framework”, he said. “It’s now becoming clearer what kind of a legal framework I needed to regulate development here.”

3smiles1day

October 16th, 2010, 11:36 AM

Agreed the commercial part of project is not going through. They have said it themselves. But isnt that the case with all developments which are going through now a days. All the developers want to get out of the shit they are in and recover their money ( at the expense of the investors). We all lose in the end with or without defaulting. So one has to choose between which is a better option for each individual. If you have paid 15% than perfectly fine to leave that investment. But people like me who have paid much more are not in that position to do so ( it will be stupidity to do so for people like me now). I would rather have the project completed at 700 dirhams per sq feet rather than lose the money i have put in.

My loss is less if i go and pay for it rather than letting it go at this stage. So for me its better of the two evils.

Please read the article "Havoc Dubai after real estate collapse-The New York Times in Dubai. " There is really no guarantee that you will get your bricks and mortar after paying the developer. How many of the investors that ain't paying is the question. I do not mind paying the developer the remaining amount for my office unit if I can be sure that the project is going to pull through. :nuts:

Spurs

December 21st, 2010, 08:31 AM

I have just recieved a call from Arisrtocrat after 2 years of silence!! They want me to pay them more money :lol: As if I would ever trust these guys with any more of my hard earned cash :ohno:

3smiles1day

January 2nd, 2011, 06:09 PM

I have just recieved a call from Arisrtocrat after 2 years of silence!! They want me to pay them more money :lol: As if I would ever trust these guys with any more of my hard earned cash :ohno:

Spurs: What exactly did Aristocrat tell you? What was their response when you told them that you are not paying anymore money?

Tell us more!

amian

February 2nd, 2011, 01:34 PM

here they are

pakboy

February 2nd, 2011, 04:54 PM

^^^
not showing.

camelrider

February 5th, 2011, 10:17 PM

refering to these perhaps?

https://picasaweb.google.com/115015285993312143379/AristocratDevelopment?authkey=Gv1sRgCOfU9uu80p-D1QE&feat=email#

Well done to the author of these photos!

IF Aristocrat THINK that we are going to give them more cash or fall for their new tactics, they are so wrong!!

Khallas 'Royal Estates/The Palisades'......it's never gonna happen in the near future, especially with your dirty tactics!

Spurs

February 7th, 2011, 08:34 AM

Love the picture of the shovels and spades :lol::lol::lol:

Nataelchibek

March 23rd, 2011, 04:34 PM

Good evening,
can you please tell me if there is a group of investors in Dubai and how to meet you guys...
My phone number is 0501537308
I have a studio apartment i paid half of the price. The developer offered me a discount but asking now to pay more money.
I have told them they have to complete at least 50% of the project to pay they more..
And why do they ask for more money if they cant touch it in escrow account.
Looking forward for your reply
Natasha

Typhoonpilot

April 2nd, 2011, 07:05 PM

methodinmadness

July 19th, 2011, 11:33 AM

As December 2011 deadline draws nearer we need start to pressure RERA into cancelling this project. Only then will we stand a chance of getting some money back and thats only if the Bank has not already released all our deposits from Escrow. This project is dead people! Time to act!

Nataelchibek

August 10th, 2011, 04:35 PM

Hey whats you number let me know when are you going my number 0501537308

Nataelchibek

August 10th, 2011, 04:37 PM

PLEASE IF YOU ARE IN DUBAI WE NEED TO GO TO RERA TOGETHER..LETS MAKE APPOINTMENT....

3smiles1day

September 5th, 2011, 08:01 AM

PLEASE IF YOU ARE IN DUBAI WE NEED TO GO TO RERA TOGETHER..LETS MAKE APPOINTMENT....

I just got back from Dubai 2 weeks ago and visited the Royal Estate site. It is more than a year since I visited the site in May 2010. I took pics on both occasions and keeping them for reference purposes. Anyone please advise how I could upload these pics?

I also got a proposal to swap the office unit for the residential units. It will be AED 800 psf versus the AED 1,100 psf for the office unit. The price at AED800 does appear to be quite near to the current market price in Dubai Investment Park region. The proposal includes a payment plan which will be paid progressively according to the works completed at the development.

I have paid about 15% for the office unit and it seems like I have got nothing to lose if I pay according to what they are actually building. I do not mind really if I can see the physical structures erected and the project is supervised by RERA.

I know it is quite difficult to trust RERA and the developer in the current market conditions in UAE. I opine it is better to see the project through and hold on to the properties rather than abandoning it midstream and hope that RERA will get our deposits back. Keeping in mind always that there is always an end to BOOM or BUST in the property market. It is just a matter of when.

Any comments guys?

methodinmadness

September 5th, 2011, 08:16 AM

No point in doing anything at the moment. The deadline for this project is December 2011. Check the RERA website for the project progress report. It probably shows no progress has been made in which case we might be able to have the project cancelled by RERA.

PLEASE IF YOU ARE IN DUBAI WE NEED TO GO TO RERA TOGETHER..LETS MAKE APPOINTMENT....

podium

September 5th, 2011, 08:42 PM

I just got back from Dubai 2 weeks ago and visited the Royal Estate site. It is more than a year since I visited the site in May 2010. I took pics on both occasions and keeping them for reference purposes. Anyone please advise how I could upload these pics?

I also got a proposal to swap the office unit for the residential units. It will be AED 800 psf versus the AED 1,100 psf for the office unit. The price at AED800 does appear to be quite near to the current market price in Dubai Investment Park region. The proposal includes a payment plan which will be paid progressively according to the works completed at the development.

I have paid about 15% for the office unit and it seems like I have got nothing to lose if I pay according to what they are actually building. I do not mind really if I can see the physical structures erected and the project is supervised by RERA.

I know it is quite difficult to trust RERA and the developer in the current market conditions in UAE. I opine it is better to see the project through and hold on to the properties rather than abandoning it midstream and hope that RERA will get our deposits back. Keeping in mind always that there is always an end to BOOM or BUST in the property market. It is just a matter of when.

Any comments guys?

Yep, I have a comment. If you have only paid 15% towards your office unit, then walk away and never look back! Firstly they will never build the development. Secondly.......there is no secondly!