#PROJECT: JUMEIRAH PARK (previously known as JV North)

[Salim]

The way my experience went with another group of investor was......
1. All the investors were gathered under ONE PRIVATE EXCLUSIVE forum where we all discussed and agreed an agenda.
2. We all made sure that no one else BUT ONLY THE INVESTORS has access to that forum. Checks were made for assurance.
3. Nominate a dubai based group to see and hire a lawyer. Negotiate the fees,
etc etc. in order to test the water....
4. All the investor were updated, kept contineous discussion and learnt from each other.....through the forum........secrecy was paramount...
5. Took us nearly 3 years to reach where we want to reach.

Setting up a private forum will requir some one with IT skill.

[jpark]

count me in at 333AED

[nagshah]

Dear All, there is misunderstanding, the 10,000 dirham is going to be by person provided we get good number. The case is going to be big and not one can afford the cost. Nakheel is asking us to sign new contracts to deliver in 2012 with no guaranty or compensation.
The lawyer believe we have a case and we should do something.
Shall we meet next Friday? We need more than 15 to start the case. We would discuss:
1. How many lawyers we should approach to get competitive rate
2. Appoint a group of 3 to talk on half of the group

[jpdelay]

Originally Posted by nagshah

Dear All, there is misunderstanding, the 10,000 dirham is going to be by person provided we get good number. The case is going to be big and not one can afford the cost. Nakheel is asking us to sign new contracts to deliver in 2012 with no guaranty or compensation.
The lawyer believe we have a case and we should do something.
Shall we meet next Friday? We need more than 15 to start the case. We would discuss:
1. How many lawyers we should approach to get competitive rate
2. Appoint a group of 3 to talk on half of the group

Please count me in as well. It has been such a long delay without any communication from them that it's not looking good. Cannot continue to pay the interest to HSBC without an end game in sight

[durbech]

Fellow JP Owners

1. Please confirm meeting site/time for this session next week Friday.

2. There is negative press now about Nakheel relating to Jumeriah Island and the recent ruling against them around a facility management company at the Palm - Jumeriah.

3. Our development is not moving forward outside of contract discussions due to the reasons below:

- Nakheel has quietly been or is being spun off from Dubai World

- Nakheel as a separate entity is doing the same exercise (needs 95% creditor approval) therefore Dubai World updates have no real impact to Jumeriah Park or other Nakheel property owners

- Nakeel is in a dispute with one of the builders for Jumeriah Park and this is not allowing constructiton to recommence - any time performance bonds are discussed it is a very serious incidient around the viability of the entire project (check out article from Oct 7 and 21 2010 The National)


http://www.thenational.ae/news/uae-n...efore-tribunal

http://www.thenational.ae/business/p...-bonds-blocked

3. Nakheel represented attorneys are ruthless. If we are not well organized with an appropriate spokesperson and most likely a single law firm, there is a little chance for us to move forward.

4. More articles like this need to be shared locally in the press.

http://dealbook.blogs.nytimes.com/20...avoc-in-dubai/

5. I find The National has better coverage about Nakheel activity than local Dubai newspapers.

6. In the long term and trying to be positive....hopefully we have made the right decision

http://www.nytimes.com/2010/09/30/bu...pagewanted=all

[Q Ball]

Hello everyone,
I am new to this thread, like many of you I am an investor in Jumeira Park Phase 2A, 70% paid up with an HSBC mortgage. I would like to attend any meeting of investors that you are planning on holding in Dubai. Unfortunately I do not have a Facebook page and so I presume that I cannot get the meeting details from Facebook.

Mohammed Daher, the Manager of J.Park, informed me last week that contractors will be on site by the end of October and a new schedule for completion of at least Phase 2A will be issued by end of November, we will have to see if that actually happens. If it doesn't then I would be prepared to start talking to lawyers, to discuss options, if any. I have one lawyer here who is well known from radio who is very keen to represent me, it would be much better to bring a class action to cut costs.

As I see it however, there are very limited legal options, you could try suing the banks for handing over so much cash to the developer without carrying out any due diligence, the banks would have a good argument against that, but if enough investors do it they might just make concessions to avoid bad press such as reducing interest % to very low figure during the delay period or other, particulalry if it was an international bank like HSBC with a large presence in the UK where they could be exposed to bad press. Second, you could try suing Nakheel and maybe settling for some discount from the purchase price for the delay, I would rate that as less likely to succeed.

Let me know about the meeting,

Michael

[Dubai_Red]

Originally Posted by Q Ball

Hello everyone,
I am new to this thread, like many of you I am an investor in Jumeira Park Phase 2A, 70% paid up with an HSBC mortgage. I would like to attend any meeting of investors that you are planning on holding in Dubai. Unfortunately I do not have a Facebook page and so I presume that I cannot get the meeting details from Facebook.

Mohammed Daher, the Manager of J.Park, informed me last week that contractors will be on site by the end of October and a new schedule for completion of at least Phase 2A will be issued by end of November, we will have to see if that actually happens. If it doesn't then I would be prepared to start talking to lawyers, to discuss options, if any. I have one lawyer here who is well known from radio who is very keen to represent me, it would be much better to bring a class action to cut costs.

As I see it however, there are very limited legal options, you could try suing the banks for handing over so much cash to the developer without carrying out any due diligence, the banks would have a good argument against that, but if enough investors do it they might just make concessions to avoid bad press such as reducing interest % to very low figure during the delay period or other, particulalry if it was an international bank like HSBC with a large presence in the UK where they could be exposed to bad press. Second, you could try suing Nakheel and maybe settling for some discount from the purchase price for the delay, I would rate that as less likely to succeed.

Let me know about the meeting,

Michael

Hi Michael,

I also bank with HSBC and have had several conversations with them along the same subject of why did they continue to disperse money to Nakheel without at least requesting to see completion milestones. I was told that the bank has an agreement with Nakheel which states that they have to disperse the funds as per the payment schedule. They further told me that even if I had requested them not to release the payment, they would still be legally obliged to do so. I have threatened HSBC to take this matter to the Financial Ombudsmen in the UK, but was told that HSBC ME is regulated by the Jersey Financial Services (& they will never do anything). The problem with the banks is that so long as we continue to pay the interest charges, they really don’t care how long Nakheel drags its feet through this mess. The only way the bank will even contemplate about doing something, is when there is a possibility of defaults. Try it, call your bank and tell them that you are likely to default on the interest charges and that they should just take the “property” back. You will be amazed how they will then offer you something. My point here is that whilst this works on an individual basis, imagine the scare that HSBC would get if it happened on a much larger scale. I am of the opinion that the bank needs to take a much greater interest (pardon the pun) in this whole mess. At the moment, they are just sitting back collecting interest payments without a care in the world as to what we are going through.

Whist I fully support the appointment of lawyers to take on Nakheel even though I am not confident of its success, I would also like to go after the banks as a group. What do other people think about this? If other HSBC customers would like to get together to discuss your experiences and any strategies on how to approach the bank, then please feel free to get in touch with me at ahafesji@gmail.com

[jpk]

Hello everyone, the most recent information i have from a very reliable source at JP is that work is due to commence very soon, as soon as 1st November 2010. infact the contractor 'pauling' has already started mobilising its site office on site and also staff salaries that were pending since months have been paid in full. i also believe that site engineers are doing the rounds to ascertain course of action for the partially built villas in phase 1. Also the fact that Nakheel has re-worked the completion date to 2012 from the previous 2014 (as on the Contract presented to me on the SWAP) on the SPA is a positive sign.

http://www.realestatechannel.com/int...dhrah-3353.php

[durbech]

Hi

Have not seen anything about a meeting location this week-end.

So I will put something out there....

If I get confirmation of over 5 people by 1230 , then we will meet.

1400 tomorrow at Starbucks on The Walk in JBR (near The Wok and The Butcher).

A final meeting on and meeting off will be posted by 1300 tomorrow.

Regards

[shivpuri]

All,

I think we should give everyone enough notice to get together a substantial group meeting. How about meeting next week. Moreover, we should also connect people on our facebook page as there are about 65 people registered there. Unless we have a large enough group we would be able to reach a reasonable conclusion.

We also need to ensure that all JP owners's contacts and unit nos. are registered. this bog is useful, but is extremely slow as people do not often log on. Having a Gmail group email account will help in communication with property owners.

I think we should not assume that we will not get anything from Nakheel. Please note that unlike banks, it is us who have to pay nakheel and hopefully we have some leverage there. we should certainly explore to speak to nakheel and possibly rera and then explore the legal route.

Unless we try it we would'nt ever know what is possible.

[JPC4]

Beyond the fact that not all of us are banking with the same bank, suing any financial institution in Dubai (be it local or international) is useless. Those of us having Islamic loans are not even concerned as no payment may be required in most cases till the delivery takes place. For those banking with a local bank such as E-NBD, just try to call Emirates NBD and let them know that you may default and the first thing you may hear is that they will debit one of the blanc cheques (the bank takes at the beginning of the loan process)... This means clearly that the caller would find himself in jail within 30 days. The other solution is that the caller leaves Dubai if he's got no longer the capacity of paying the mortgage.
Nakheel has got clearly no money to re-start any project seriously. People are just buying time to calm people down, waiting for a miracle to happen (which won't for the foreseeable future)...
The only action worth any effort, I can see is a public publicised petition to the attention of His Highness to support our group and set an example dealing with an unfair situation putting so much pressure on us and our families.
The situation we are all in is the result of a huge gap within the laws of the country not protecting the small investors we may be. To change the law by decree, only one single person in this Emirate is responsible...
Any other (legal) action will be simply a waste of time...

[nagshah]

Are we meeting?

[JPC4]

14:00 today at Starbucks on The Walk in JBR (near The Wok and The Butcher).

[durbech]

Yes - still meeting at 14.00 today at Starbucks on the Walk in JBR (near The Wok and The Butcher) for those who can make it. It is crazy down on the walk today, so if you need to find parking, give yourself lots of time....

[thaji78]

Originally Posted by durbech

Yes - still meeting at 14.00 today at Starbucks on the Walk in JBR (near The Wok and The Butcher) for those who can make it. It is crazy down on the walk today, so if you need to find parking, give yourself lots of time....

Hi All,

Unfortunately I was unable to join you as I just saw this meeting 'invite'. Can someone please brief us on how the meeting went?

Thanks

[JPC4]

MEED.COM, Issue 44 29 October-5 November 2010

Companies are making it clear they want payment guarantees if they are to work for the developer again


In 2008, Nakheel awarded $8.3bn of contracts, making it the region’s largest construction client by far. With billions of dollars of work planned, it could pick and choose the contractors it worked with and was busy negotiating lucrative deals to build hotels, offshore islands, villas and tower blocks.

Today, the market has turned full circle, and the Dubai government-owned developer is no longer a major client for construction companies. It has $25bn of debts, has been forced to shelve $117bn of its projects, and in 2010 has awarded just $140m of contracts.

Not surprisingly, contractors have wasted little time looking for new opportunities with Nakheel since 2008. Instead, Dubai’s contractors were forced to look for work in other regional markets, such as Abu Dhabi, Qatar, Kuwait, Oman and Saudi Arabia.

For many contracting companies, those efforts are now producing results. In early October, Dubai-based Arabtec Construction, through its local affiliate, won an estimated SR5bn ($1.3bn) contract to build 5,000 villas in the Eastern Province of Saudi Arabia. Other Dubai-based contractors have enjoyed similar successes, including Khansaheb Civil Engineering and Al-Futtaim Carillion in Abu Dhabi, Dubai Contracting Company (DCC) in Saudi Arabia and Al-Naboodah Contracting in Qatar.

These awards mean Dubai’s leading contractors are no longer as dependent on their home market for new work and can afford to be selective. For work with Nakheel, contractors have made it clear they want payment guarantees.

Nakheel may decide that with little other opportunities for work in Dubai, it does not need to offer contractors payment assurances. If this happens, the risk is they will not get Dubai’s best-performing contractors to participate in their tenders. In contracting, you get what you pay for, and Nakheel may learn that companies desperate for cash flow will be unable to guarantee their performance.

[thaji78]

Called Djehan, gave her my villa number and she confirmed handover date of Mid-2012, yes 2012.
PR are currently preparing official communication from Nakheel with this regard.
Mine is a 3BR Legacy Large initially Phase 1 then batch 4 something I think.
No compensation for all these years' rent.

[share.info]

hi JPK

Whats the latest information you have from your reliable source
your information is highly appreciated

cheers

[DUBAI INVESTOR]

Investors cry foul over 'unfair' mortgage interest

Mortgage lenders accused of charging interest for delayed period on deferred projects

Property investors in projects that are being delayed are crying foul over mortgage companies charging them interest for the period of the delay as well.

Islamic mortgage lenders, as well as conventional lenders are being accused of charging interest on the amount paid so far, for the entire period of the delay.

While Islamic mortgage lenders charge what is termed as a profit, conventional lenders charge regular interest.

Several investors, speaking to this website on condition of anonymity, said banks have informed them that this interest will be claimed, in a lump-sum, before handover of the flat.

Experts told this website that the clause that covers this “pre-construction profit” may well be mentioned in some contracts, but investors may have over-looked it, not expecting projects to get severely delayed.

Several banks dealing in both types of mortgages refused to comment on the issue.

RM, employed with an international management consultancy in the UAE, said the project where he bought a unit has been delayed by over 18 months and the Islamic bank that financed his property has extended the "pre-construction profit" for the delayed period as well.

"We were promised handover in June 2009. As per our contract, the developer had the right to extend the handover date by six more months. However, now we are being told the delivery will be in early 2011. So we need to pay for 2010 and we are not getting our unit," RM said, adding, “Moreover, the amount has to be paid in a single cheque.”

Another investor, DM, said he too has to shell out a large sum since his bank has already paid 75 per cent of the loaned amount to the developer.

http://www.emirates247.com/property/...11-03-1.312650

[nagshah]

I will go to a lawyer this week. Enough is enough. If any one can recommend, please send me the name. Who like to come with me or use the same lawyer I will use as the cost will be lower, he is welcome.

We need to be active not just cry here. Nabeel