#TOPPED OUT: LAGUNA TOWER, 40F Hotel + Res, 153m, Plot A2

[akkiappalo]

If we want to sue IFA, I'm down....PM with details, see how many ppl can go for it, get a layer and split the costs....

[sonakash]

You can stay WORRIED and fizzle out, My point of discussion is to take a stand against IFA, to pressurize them into negotiating concessions. I will take my stand without your assistance.

[worried4]

Originally Posted by sonakash

You can stay WORRIED and fizzle out, My point of discussion is to take a stand against IFA, to pressurize them into negotiating concessions. I will take my stand without your assistance.

Take your stand, you have not even made one phone call to IFA in the last few years, all you want to do is for other people to do your things. Typical American!!!

[yabani]

Just a thought ...
being a very frequent visitor to Dubai since 2010. I believe those who visit Dubai notice that Flat-supply is now high, Flats are empty, while Hotels are extremely busy. Hotel Rates have gone incredibly up, especially around the Marina/JBR area.

Having said that, don't you guys believe that Movenpick is now more enthusiastic than ever to run the building and benefit from this high demand for Hotel Rooms?

[worried4]

Originally Posted by yabani

Just a thought ...
being a very frequent visitor to Dubai since 2010. I believe those who visit Dubai notice that Flat-supply is now high, Flats are empty, while Hotels are extremely busy. Hotel Rates have gone incredibly up, especially around the Marina/JBR area.

Having said that, don't you guys believe that Movenpick is now more enthusiastic than ever to run the building and benefit from this high demand for Hotel Rooms?

Yabani-see Post no 914. There is also a link to a Gulfnews article. I concur with you that Movenpick should be enthusiastic about this now

[sonakash]

Dubai investors to get full refund if developers default on handover
Proposed Investor Protection Law also makes it mandatory for developer to provide all promised common facilities
By Parag Deulgaonkar
Published Sunday, April 29, 2012
Property investors in Dubai will be eligible for cancellation of their contracts and may seek “full” refunds if the real estate developer fails to provide the promised unit or services within a specific timeframe, according to a proposed new Investor Protection Law.

From a delay in handing over of units to a failure to deliver promised facilities as per the sales contract, the proposed law gives property investors in Dubai the right to seek cancellation of their contracts and get “full” refunds.
Under the proposed law, an investor will get the right to cancel the contract and obtain a full refund if the developer has taken more than eight months (beyond the promised handover date) to hand over the unit(s).
Another provision proposes to make it mandatory for the developer to provide all the common facilities promised in the contract at the time of handover.
Therefore, swimming pools, gyms or any other promised facility in the building will have to be ready before officially handing over the keys to the owners.
Failure to do so on the part of the developer will allow the investor to cancel his or her contract and claim refund on investment.
At present, some developers have failed to provide the facilities mentioned in their sales purchase agreements (SPAs) or marketing collateral.
Until now, owners did not have much recourse and could only hope that the facilities would get completed at some point in time.
On the other hand, developers will face fines if the units they promise are not delivered on time, or to agreed specifications.
A proposed provision of the draft law says that if a unit turns out to be 30 per cent smaller than the actual net area in the contract, the investor will have the right to cancel the contract and obtain a full refund.
In case of off-plan sales, the draft proposes to make it mandatory for a developer to get all approvals from the Real Estate Regulatory Agency (Rera) and to register all saleable units with the Dubai Land Department’s Oqood system — the online registration system.
The developer is also obliged to register all contracts with Rera and to provide all information regarding the project’s handover, escrow account, etc.
The draft law mentions that a reservation form will be deemed “void” if the developer has failed to provide the investor with an agreement within 15 days of the signing of the reservation form.
Arabic newspaper Al Bayan quoted Sultan Bin Mejren Director General of Dubai Land Department, earlier this month, saying that the department had completed the finalisation of the draft law on the protection of the real estate investor and it is expected to be implemented by June-end.
Ludmila Yamalova, Managing Partner of HPL Yamalova & Plewka JLT, told Emirates 24|7: “The various provisions mentioned in the draft are helpful for the investors especially since it gives them the right to cancel than just seek compensation.
“A lot more, however, can be done to tighten the provisions relating to off plan market.”
Following the global economic slowdown of 2008, there are still hundreds of property projects on hold in Dubai (as of March 31, 2012), but many are likely to see the light of day.
Dubai’s Real Estate Regulatory Agency has been quoted in the planned sovereign bond prospectus as saying that 165 projects have been completed since the beginning of 2009; 291 projects are on hold; 291 projects are likely to be completed in due course, while 29 projects have not yet commenced.
According to the prospectus, Dubai Land Department says that 291 projects are on hold, but that each of them is likely to qualify for either the Tayseer or the Tanmia initiatives that will provide financial and other assistance to such projects and their investors.

Nevertheless, legal experts opine that a remedy to whether or not an investor can claim refund may already exist in the contract that she or he signs with the developer.
In certain contracts, the developers have clearly mentioned the handover date to commence only after completion of the infrastructure work by the master developer. Here, developers can use the “force majeure” clause to justify delays, experts say.

[jnas]

I doubt you will get anything. Even government lead developers are ripping there customers off. You have no chance. Sit it out. Hope you get something in the next few years once the market recovers.

[yabani]

Delayed handover of Laguna Tower upsets investors
by Cathal McElroy on Apr 2, 2012

Laguna Tower is part of the Jumeirah Lakes Towers development

RELATED ARTICLES: 13 towers to be completed in Dubai's JLT in 2011 | Tough regulations ripple out as JLT juggles multiple high-rises | Al Mazaya promises to finish JLT project this year

Some investors in Laguna Tower in Jumeirah Lakes Towers are refusing to take handover, citing citing unjustified delay (actual completion date as per sales agreement: October 2007), Emirates 24/7 reports.

The developer of the tower, IFA Hotels and Resorts, is finally set to commence a phased handover of the project from the end of June, but while some investors are seeking compensation the developer has ruled out the prospect of any such payout.

“We will start the handover at the end of quarter two and it will be a phased handover that will take three to four months,” a spokesperson from IFA Hotels & Resorts said.

“Despite our best efforts we have not received any compensation for building delays from concerned authorities to pass along to clients,” she added.

The delay, according to the company, was due to numerous factors, which it says were mostly outside their control and related to infrastructure in the master development (JLT).

“We also faced challenges resulting from the knock-on effect some of our contractors suffered after the economic crisis. Those factors that were within our control have been addressed.”

She added: “As with all IFA Hotels & Resorts’ projects in the region, we continued to build throughout the slow-down when other developers stopped.”

An investor, on conditions of anonymity, claimed the tower was to be completed by October 2007, but the completion date was extended by a year as per the sales and purchase agreement.

He, however, maintained he hasn’t been informed about the handover and is now not interested in taking possession because of the unsubstantiated delay.

“I am not in default. Till date, the company has failed to deliver possession of my units. I have run out of patience and want to terminate my agreement. I want a full refund along with interest.”

The investor has paid in excess of AED 3 million for his apartments in the tower.

In an email sent to an investor, the company claimed that the sale agreement for completion date can be extended for a period of 12 months, but can be further extended as a result of force majeure.

“Thus, if there are (for example) force majeure events which can be established for a period totaling two years, the completion date is extended two years, in addition to the previous 12 months extension.”

Laguna Tower is 40 storeys tall, and features a mix of 1, 2 and 3 apartments on every level.

[jnas]

Originally Posted by building1

Sounds very expensive.
But the most important question for me is: will the apartment be part of the hotel rental pool, if it is furnished ?

Yes it is expensive. But if you don't go for it you cannot rent your room through the hotel.

The high standard must be maintained.

[building1]

Originally Posted by jnas

Yes it is expensive. But if you don't go for it you cannot rent your room through the hotel.

The high standard must be maintained.

I was informed that the hotel rental program will not be available.

[Iknow]

Originally Posted by yabani

Delayed handover of Laguna Tower upsets investors
by Cathal McElroy on Apr 2, 2012

Laguna Tower is part of the Jumeirah Lakes Towers development

RELATED ARTICLES: 13 towers to be completed in Dubai's JLT in 2011 | Tough regulations ripple out as JLT juggles multiple high-rises | Al Mazaya promises to finish JLT project this year

Some investors in Laguna Tower in Jumeirah Lakes Towers are refusing to take handover, citing citing unjustified delay (actual completion date as per sales agreement: October 2007), Emirates 24/7 reports.

The developer of the tower, IFA Hotels and Resorts, is finally set to commence a phased handover of the project from the end of June, but while some investors are seeking compensation the developer has ruled out the prospect of any such payout.

“We will start the handover at the end of quarter two and it will be a phased handover that will take three to four months,” a spokesperson from IFA Hotels & Resorts said.

“Despite our best efforts we have not received any compensation for building delays from concerned authorities to pass along to clients,” she added.

The delay, according to the company, was due to numerous factors, which it says were mostly outside their control and related to infrastructure in the master development (JLT).

“We also faced challenges resulting from the knock-on effect some of our contractors suffered after the economic crisis. Those factors that were within our control have been addressed.”

She added: “As with all IFA Hotels & Resorts’ projects in the region, we continued to build throughout the slow-down when other developers stopped.”

An investor, on conditions of anonymity, claimed the tower was to be completed by October 2007, but the completion date was extended by a year as per the sales and purchase agreement.

He, however, maintained he hasn’t been informed about the handover and is now not interested in taking possession because of the unsubstantiated delay.

“I am not in default. Till date, the company has failed to deliver possession of my units. I have run out of patience and want to terminate my agreement. I want a full refund along with interest.”

The investor has paid in excess of AED 3 million for his apartments in the tower.

In an email sent to an investor, the company claimed that the sale agreement for completion date can be extended for a period of 12 months, but can be further extended as a result of force majeure.

“Thus, if there are (for example) force majeure events which can be established for a period totaling two years, the completion date is extended two years, in addition to the previous 12 months extension.”

Laguna Tower is 40 storeys tall, and features a mix of 1, 2 and 3 apartments on every level.

Force manure is probably more appropriate in the case of most developments in Dubai !

[jnas]

Originally Posted by building1

I was informed that the hotel rental program will not be available.

what do you mean? when were you told this. that's the whole selling point of this development!

[worried4]

Originally Posted by building1

I was informed that the hotel rental program will not be available.

Does this mean that Movenpick has walked away?

[building1]

Originally Posted by worried4

Does this mean that Movenpick has walked away?

No. it does not mean that. The hotel is managed by Moevenpick and it will go ahead as planned. But the residences (above the hotel units) can not be given into the hotel rental pool. This is new. The reason is a new rule by DMCC, which does not allow short term rental and long term rental of units within the same floor. If you read the update regarding the furniture package carefully, you can read it between the lines:

Quote:
"Due to recent DTCM rule changes the properties within Laguna Tower may only be leased on a standard contract without short term rental provision. Should the ruling change, the packages will allow for short term letting and have been specified accordingly."

[building1]

Originally Posted by jnas

what do you mean? when were you told this. that's the whole selling point of this development!

Yes, you are right. It was also the reason why I invested in Laguna Tower....

[jnas]

Originally Posted by building1

No. it does not mean that. The hotel is managed by Moevenpick and it will go ahead as planned. But the residences (above the hotel units) can not be given into the hotel rental pool. This is new. The reason is a new rule by DMCC, which does not allow short term rental and long term rental of units within the same floor. If you read the update regarding the furniture package carefully, you can read it between the lines:

Quote:
"Due to recent DTCM rule changes the properties within Laguna Tower may only be leased on a standard contract without short term rental provision. Should the ruling change, the packages will allow for short term letting and have been specified accordingly."

OMG, this investment is gotten worst now. Now I'm not bothered weather I get this or not. What a waste of money. With 1000s of properties unrented in Dubai. I doubt this will get rented either, if not part of the hotel management. .

This was the unique selling point of the development to have it in the rental pool when not in use!

[PaulDubai]

Originally Posted by jnas

what do you mean? when were you told this. that's the whole selling point of this development!

Lol,

[PaulDubai]

Originally Posted by jnas

Yes it is expensive. But if you don't go for it you cannot rent your room through the hotel.

The high standard must be maintained.

What high standard?

[jnas]

Originally Posted by PaulDubai

What high standard?

I was being sarcastic. it's like all of ifa developments!!

[PaulDubai]

Originally Posted by jnas

I was being sarcastic. it's like all of ifa developments!!

No, I disagree. Look at IFA's developments in Thailand, they are superb... The Fairmont Palm residence in Dubai, excellent quality and now a great investment in very high demand!
It appears as if its just the one you put money in is shite...lol....