#PROJECT: PALAZZO VERSACE RESORT (Culture Village)

[Number 49]

UPDATE: The Palazzo submits this statement:

Emirates Sunland, the developer of Palazzo Versace Dubai would like to advise that the article that appeared in Arabian Business and the subsequent article in Business Insider, contains information that is factually incorrect, misleading, unauthorised and damaging to the project, and its related parties. Palazzo Versace Dubai is now 80% complete. Construction is continuing and has at no point stopped. As is the nature of the construction industry amendments have been made to the proposed build schedule however, no funding for Palazzo Versace Dubai has been blocked, and the finance syndicate continues to support the project’s delivery. The article quotes Ms Shapedko, on behalf of Better Homes, as follows “Based on our available information, the Palazzo Versace is heavily behind schedule… What we hear is that project funding is blocked [and] completion dates have been postponed,” Emirates Sunland has afforded Better Homes the opportunity to retract the inaccurate statement provided by Ms Shapedko, and is considering the legal implications and redress available under local UAE laws.



Read more: http://www.businessinsider.com/palaz...#ixzz1Gg8obGx9

[farodkhaledmossad]

Hi folks,

that´s a real shame, start to the end, blaming investors, then denying the undenyable it´s self. It´s late, period.
Versace´s brand on it´s worse scenario.

Without Dubai Properties partnership, no rebate investment could be realized since you wont get any infraestructure site to ensure a Hotel needs.
That´s a real and deep situation.

Transparency should be the rule right now.

Better days to come, we do hope.

[axe2grind]

Having recently spoken to another developer at Cultural Village regarding the infrastructure issues, he informed me that Dubai Properties had advised him sometime ago not to continue with his development at the moment as the infrastructure would not be ready anytime soon!!!!! He has suspended work.
If Sunland know differently or have a Plan 'B' perhaps they could be a little more transparent about what it is rather than present the image that they can complete and are in control of the issue. Currently its dillusional and mixed up thinking.

[DubaiDreamz]

Originally Posted by axe2grind

Whoever was planning on providing finance to Sunland has done their Due Diligence and come to the same conclusion that the investors have ie. THIS PROJECT CANNOT BE COMPLETED OR HANDED OVER WITHOUT THE INFRASTRUCURE IN PLACE.
As far as Sunland is concerned its those nasty investors who are to blame for the delays not the flooding of the site, the design changes, lack of co-ordination, poor management decision making, etc.
Sound financial reasoning says this project should have been put on hold when the master developer ceased work.
The management of this development is attempting to give a positive spin that the project will be completed but it is financial suicide to continue unless you have a proper execution plan that shows project completion, handover and occupation. Sunland will continue to play this game until the 12 months extension to the anticipated completion date of somewhere between 31 December 2009 and 30 June 2010 has been reached, ie. 30 June 2011. That date is fast approaching and completion will not have been achieved, and, thereafter they will envoke the Force Majeure clause in the contract like every other developer in Dubai that is behind schedule.

Totally agree and this is the reality. If they do not secure finance then the project is in jeopardy. Even with finance, when they have completed the condominiums there will not be a hotel available for 6 to 12 months. They need to complete the residences so they can receive a cash injection from the final payment...what do you think they will do with that cash?? Ensure their own bonuses or maybe put it to use on completing the hotel?

If anyone lhas invested in a PV condo without the furniture package then please PM me to discuss.

[DubaiDreamz]

Originally Posted by axe2grind

Having recently spoken to another developer at Cultural Village regarding the infrastructure issues, he informed me that Dubai Properties had advised him sometime ago not to continue with his development at the moment as the infrastructure would not be ready anytime soon!!!!! He has suspended work.
If Sunland know differently or have a Plan 'B' perhaps they could be a little more transparent about what it is rather than present the image that they can complete and are in control of the issue. Currently its dillusional and mixed up thinking.

Upon visiting site last week I was assured that Sunland would be issuing a letter to all owners with more info within the next few weeks...a little late I feel when there has been so much in the press. Surely they need to be more transparent with the existing investors.
No doubt this letter will just say how well the project is moving along and that they are 87% complete according to RERA. (Is it me or is that figure TOTALLY misleading????). Probably say that project sales are picking up (7 last year etc.) and tell us how great our investment will be on completion.......i.e PLEASE DON'T DEFAULT, PLEASE, PLEASE!
Anyway, they may surprise us so let's hope they offer more accurate and relevant info that is of use to investors.

[axe2grind]

DubaiDreamz you are not alone in thinking the 87% completion certified by RERA is misleading, it is. RERA use a company called Scream!line to prepare these completion reports and they include an element of procurement which is about 25% of the 87%. Do the math!!!
The condominiums were sold as hotel apartments with a guaranteed 15% per annum return on investment if you lease it back to the hotel. Or so the sales people were saying. After Sunland issued the long delayed contracts there is no mention of the leaseback. I have been involved with 5 hotel developments in Dubai and to make a 5 star hotel profitable any hotel manager will tell you they need approximately 400 to 450 rooms to make it viable. So Palazzo Versace need the condominiums as 160 hotel rooms doesn't work.
The hotel apartments sales were financing the hotel costs which I wouldn't have minded had Sunland stuck to the sales pitch of 15% per annum return on investment. Since investors have stopped making payments as the development has ground to a snails pace with no sign of the very extended completion date of end of June 2011 being achieved there is no money for the hotel construction so Sunland have had to seek financing to make up the difference.
The hotel is of no use without the condos and the condos are of no use without the hotel.
I haven't seen an apology from Better Homes so they are either correct about the financing or Sunland have commenced legal action against them.
Either way the investors are left in limbo whilst Sunland take an aggressive stance against the very people they need.
I wait with bated breath to hear what this letter is going to say but I can't imagine that it will be anything positive but I would love to be proven wrong.

[DubaiDreamz]

Originally Posted by axe2grind

DubaiDreamz you are not alone in thinking the 87% completion certified by RERA is misleading, it is. RERA use a company called Scream!line to prepare these completion reports and they include an element of procurement which is about 25% of the 87%. Do the math!!!
The condominiums were sold as hotel apartments with a guaranteed 15% per annum return on investment if you lease it back to the hotel. Or so the sales people were saying. After Sunland issued the long delayed contracts there is no mention of the leaseback. I have been involved with 5 hotel developments in Dubai and to make a 5 star hotel profitable any hotel manager will tell you they need approximately 400 to 450 rooms to make it viable. So Palazzo Versace need the condominiums as 160 hotel rooms doesn't work.
The hotel apartments sales were financing the hotel costs which I wouldn't have minded had Sunland stuck to the sales pitch of 15% per annum return on investment. Since investors have stopped making payments as the development has ground to a snails pace with no sign of the very extended completion date of end of June 2011 being achieved there is no money for the hotel construction so Sunland have had to seek financing to make up the difference.
The hotel is of no use without the condos and the condos are of no use without the hotel.
I haven't seen an apology from Better Homes so they are either correct about the financing or Sunland have commenced legal action against them.
Either way the investors are left in limbo whilst Sunland take an aggressive stance against the very people they need.
I wait with bated breath to hear what this letter is going to say but I can't imagine that it will be anything positive but I would love to be proven wrong.

However they want to massage the figures regarding completion, there is still a substantial amount of work required and this is verified by the slated completion in 9-12 months for condos and 18 months for the Hotel. We also know that these dates are not fixed and are most likely to be delayed further, pushing it well past the long stop date. I totally agree with you, the fact (according to Sunland) that approximately 50% of the original 70% of investors have defaulted now means that the only way for the project to be completed is by getting finance as it was investors money that was financing the project. Sunland confirmed that they are in negotiation with a certain Bank at the present and are awaiting a deal to be signed. However no-one can confirm what will happen if the banks don;t come on board !
When I invested at pre-launch there was never a guaranteed 15% return on renting out the condo, merely a suggetion of anticipated returns. Most recently it has been suggested that there would be a 50/50 slit on room revenue and that a 2 bed condo should rent for about 2000 USD per night. With hotel occupancies at an average of 70% in Dubai, investors should be reassured that they have a solid invesment! But the reality is that I have a property valued at approximately 25% less than pre-launch prices so what would be the 15% be based on anyway? I also bought without furniture and it has been suggested (still waiting for the official info from Sunland) that the furniture package will be available at a price of 3 Million AED, I repeat 3M! With a heavy discount (up to 50%) if paid off early. With no option to rent out for at least 18 months as there will be no hotel I do hope that Sunland issue more substantial and detailed information to reassure us investors...let's wait and see.

[jinja1120]

please remember this is how they lead the investors of white bay up the garden path!

[Dubaiiscool:)]

RERA confirmed that the technical audits carried out in February found that Palazzo Versace Dubai is 87% complete.

The façade installation with its embellishments is progressing well with façade treatments to the condominium wings closest to the creek now complete. All areas of the hotel façade (including condominiums) facing the street are now complete to level 9. The final area of the main building façade facing the creek has commenced. Moulding work and paneling to the lower feature façade arches has commenced.

Painting of the façade is progressing well with installation of the final decorative metal panels underway. The exterior of the hotel is beginning to take shape, as the scaffolding is removed and the detailed façade treatments are revealed.

Landscape structures are progressing in all outdoor areas of the development. The pool contractor is now working on the main pool and water features to the east lagoon area.

The terrace structures to the level 8 condominium terraces are complete, and the pool contractor has commenced work on pools for the upper level condominiums.

Internal works on the condominiums are progressing with plasterboard sheeting and mouldings complete to level 7, and are now working towards completing this phase of the internal fitout on level 8. Two additional display apartments, Type 2B and 2C, are in the process of being completed with furnishings. Stone and mosaic feature installation is now progressing on level 3 of the condominium wings, Ala Destra and Ala Sinistra.



http://view.exacttarget.com/?j=fe571...7564027a731d79

[axe2grind]

Dubaiiscool,

Posting misleading and uninformed information like this without comment really isn't on unless you provide the actual completion date as well!!! So how long is it going to take to complete the final 13%?

The photograph you have posted clearly shows there is a lot of work to do externally and the internals cannot be progressed properly unless there is wild air provided to the building so that the timber floors, doors, kitchen units, wardrobes, plasterboard ceilings and walls can be installed without damage due to high humidity.

Carrying on with the work the way it is at present will only lead to numerous snagging problems later. Maintaining temporary power to these units until they are capable of being handed over will cost a fortune and who is expected to pay for it?

The logic behind Sunlands planning of this project mistifies me and I wish they would be a little more forthcoming about how they are going to do it because I only see a disaster in the making. But prove me wrong Sunland by letting us all in on the secret. Too much crystal ball gazing me thinks.

[Face81]

Originally Posted by Dubaiiscool:)

http://view.exacttarget.com/?j=fe571...7564027a731d79[/CENTER]

Love the facade!!!

[Dubaiiscool:)]

Originally Posted by axe2grind

Dubaiiscool,

Posting misleading and uninformed information like this without comment really isn't on unless you provide the actual completion date as well!!! So how long is it going to take to complete the final 13%?

The photograph you have posted clearly shows there is a lot of work to do externally and the internals cannot be progressed properly unless there is wild air provided to the building so that the timber floors, doors, kitchen units, wardrobes, plasterboard ceilings and walls can be installed without damage due to high humidity.

Carrying on with the work the way it is at present will only lead to numerous snagging problems later. Maintaining temporary power to these units until they are capable of being handed over will cost a fortune and who is expected to pay for it?

The logic behind Sunlands planning of this project mistifies me and I wish they would be a little more forthcoming about how they are going to do it because I only see a disaster in the making. But prove me wrong Sunland by letting us all in on the secret. Too much crystal ball gazing me thinks.

I am sorry, but I got this from the Palazzo Versace Dubai website under construction updates.

I don't know what your contract says, but I guess like most projects in Dubai it has been delayed by the Global Financial Crisis. I am sorry if you feel that I have misinformed you, but I just copied and pasted all the info from the Pallazo Versace website onto here. I still think that they are making progress though on the Palazzo Versace even if it seems slow.

[axe2grind]

Face 81 couldn't have said it better. It is a lovely facade!!!!

I am sorry too Dubaiiscool, but clearly you haven't invested in this project and been given the run around by Sunland regarding completion dates for the past 3 years.

The point is this. When you post something from another source you are not sure if it is correct and by simply repeating it you lend credence to it. In fact it comes across to me as an investor as defending the indefenceable. This project is 2 years behind schedule and can only be occupied if temporary infrastructure facilities are provided. The cost of this is prohibitive and in any case Sunland have never indicated that this is an option they are considering. The reality is they stay very quiet when it comes to anything to do with the completion date.

Investors in this project should now be getting a return on their investment but Sunland don't want to even discuss that, instead they rely heavily on the RERA report from Scream!line which is misleading as it says 87% complete whereas in fact it should say 62% complete and 25% in procurement.

If I am wrong then someone from Sunland can refute it by posting the full Scream!line assessment not just the first page.

There is going to be a time, very soon, when Sunland will have to come clean about how they are managing this project. What they don't realise or even care about is that anyone with their hard earned cash in this project is a stakeholder and has a right to know what is going on.

[bizzybonita]

[sgn7200]

Can someone please give us some information concerning the current state of INFRASTRUCTURE in Culture Village. What surprises me most is that when many other developers are not building either because INFRASTRUCTURE is not in place or becaue DEWA or some other statutory agency is not allowing them to build, how come, Palazzo Versace and D1 have reached completion stage. What is the use of these couple of beautifully completed buildings when all around there is nothing but sand and abandoned buildings. For example, Dheeraj & East Coast have several projects in the area e.g. Cascade Ville, Cascade Manor, etc where they have built a floor or two and then abandoned because of both the authorities won't let them build and the INFRASTRUCTUE is lagging behind. Can someone tell us what is the current policy of Dubai Properties Group with regard to thr provision of INFRASTRUCTURE. Quite frankly, Culture Village is such a lovely location and lack of leadership in Culture Village has brought Dubai a very bad name.

[skinnygirl]

Originally Posted by axe2grind

Dubaiiscool,

Posting misleading and uninformed information like this without comment really isn't on unless you provide the actual completion date as well!!! So how long is it going to take to complete the final 13%?

The photograph you have posted clearly shows there is a lot of work to do externally and the internals cannot be progressed properly unless there is wild air provided to the building so that the timber floors, doors, kitchen units, wardrobes, plasterboard ceilings and walls can be installed without damage due to high humidity.

Carrying on with the work the way it is at present will only lead to numerous snagging problems later. Maintaining temporary power to these units until they are capable of being handed over will cost a fortune and who is expected to pay for it?

The logic behind Sunlands planning of this project mistifies me and I wish they would be a little more forthcoming about how they are going to do it because I only see a disaster in the making. But prove me wrong Sunland by letting us all in on the secret. Too much crystal ball gazing me thinks.

I have read quite a few of the negative comments regarding the finance and infrastucture issues surrounding the PV and am a little confused.

As far as I am aware, Sunland are continuing to build the PV (and the D1 for that matter).
Sunland still own quite of lot of both developments either because they held back some apartments/condos from their initial sales push or because they have repossessed them from defaulting owners.
There is no Off Plan market so these developments won't be worth anything (to either Sunland or other investors) until they are Complete.
Investors will not pay the last installment of their payment plan until the developments are Complete. And Complete means that there is adequate infrastructure in place.

My conclusion therefore is that Sunland and the investors in the PV and D1 are all in the same boat and that if Sunland didn't think they could either raise the necessary finance or get the infrastructure to Complete these developments they would have abandoned them both long ago.

It is just not in Sunland's interests to continue to spend money on these developments unless they were confident that they would be able to Complete them.

[Dubaiiscool:)]

I am not really sure about substations etc, but I just want to ask anybody who might know if they might actually use the Dubai Health Care City substation or any other that is near culture village until there is more demand in Culture Village?

All other infrastructure seems to be in place like bridges, metro except for things that can be done quickly like lights asphalt and du/etisalat.

[farodkhaledmossad]

Originally Posted by skinnygirl

I have read quite a few of the negative comments regarding the finance and infrastucture issues surrounding the PV and am a little confused.

As far as I am aware, Sunland are continuing to build the PV (and the D1 for that matter).
Sunland still own quite of lot of both developments either because they held back some apartments/condos from their initial sales push or because they have repossessed them from defaulting owners.
There is no Off Plan market so these developments won't be worth anything (to either Sunland or other investors) until they are Complete.
Investors will not pay the last installment of their payment plan until the developments are Complete. And Complete means that there is adequate infrastructure in place.

My conclusion therefore is that Sunland and the investors in the PV and D1 are all in the same boat and that if Sunland didn't think they could either raise the necessary finance or get the infrastructure to Complete these developments they would have abandoned them both long ago.

It is just not in Sunland's interests to continue to spend money on these developments unless they were confident that they would be able to Complete them.

Do you work for them or what, since " your " conclusions are exactly the same of their? So funny to subscribe to SSC just to post that here, it´s your right of course, but funny as well.

[farodkhaledmossad]

Originally Posted by axe2grind

Face 81 couldn't have said it better. It is a lovely facade!!!!

I am sorry too Dubaiiscool, but clearly you haven't invested in this project and been given the run around by Sunland regarding completion dates for the past 3 years.

The point is this. When you post something from another source you are not sure if it is correct and by simply repeating it you lend credence to it. In fact it comes across to me as an investor as defending the indefenceable. This project is 2 years behind schedule and can only be occupied if temporary infrastructure facilities are provided. The cost of this is prohibitive and in any case Sunland have never indicated that this is an option they are considering. The reality is they stay very quiet when it comes to anything to do with the completion date.

Investors in this project should now be getting a return on their investment but Sunland don't want to even discuss that, instead they rely heavily on the RERA report from Scream!line which is misleading as it says 87% complete whereas in fact it should say 62% complete and 25% in procurement.

If I am wrong then someone from Sunland can refute it by posting the full Scream!line assessment not just the first page.

There is going to be a time, very soon, when Sunland will have to come clean about how they are managing this project. What they don't realise or even care about is that anyone with their hard earned cash in this project is a stakeholder and has a right to know what is going on.

You said all. My compliments.

[axe2grind]

Clearly skinnygirl is a mole planted by Sunland to put a positive spin on the current status of this project and anything she posts should be confined to the wastebin.
On my last visit to site the infrastructure was at a standstill as it has been for the past 2 years. I saw 2 other developers vainly trying to progress their building but the remainder have not done anything or have stopped. I did see what might be a temporary district cooling plant being worked on near the metro line but other than that, nothing.
The extended completion date for Palazzo Versace as mentioned in the contract (should you have been unfortunate to have signed it) is end of this month. Now I know Arabtec can work quickly but somehow I think this date is going to be missed as all other dates have been. Once this happens Sunland are in material breach of contract!!!
If any investors, and I repeat investors, are interested in knowing how to get at Sunland then feel free to send me a PM. They think they are bullet proof but they aren't!