#GROUND WORK: THE SKYSCRAPER, 66F Com, 330m (BB)

[Imre]

30/October/2009

The Skyscraper

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[234sale]

[IMG]http://i34.************/16k464h.jpg[/IMG]

[Imre]

29/November/2009

The Skyscraper plot

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[Parisian Girl]

Al Attar Properties serves legal notices to investors

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The developer claims it has invested Dh60m to Dh70m to continue construction of The Skyscraper and Polaris. (SUPPLIED)

By Parag Deulgaonkar on 2/4/2010

Al Attar Properties, a Dubai-based developer, has served legal notices to investors in its The Skyscraper, a commercial tower in the Business Bay development, seeking payments to continue with construction, a senior company executive said.

"We have already linked our payment plans to construction milestones and investors were required to pay after we completed piling. Only five to 10 clients have paid… we have an outstanding of about Dh68 million on the project," Bipin Tavarool, Projects Manager – Head of Projects & Finance, Al Attar Properties, told Emirates Business.

The first installment of 15 per cent was due on completion of shoring and piling.

"We have served them [investors] with notices through authorities concerned and are requesting them to pay the dues."

The developer claimed it has invested Dh60m to Dh70m to continue construction of The Skyscraper and Polaris, a mixed-used development, also in the Business Bay development.

Tavarool said: "We have sold up to 55 per cent of the project and expect completion by 2011. So we have invested more than Dh60m-Dh70m from our own pocket to continue construction."

An option the developer is considering is offering "genuine" buyers in The Skyscraper an option to move their investments to Polaris.

"We are considering transferring our [The Skyscraper] investors, who have continued to pay, to Polaris. Those who haven't will not be given this offer."

Tavarool added: "Clients need to pay. We were not collecting any money from clients on any of our projects for the past 18 months… now we are starting and so they should pay."

Meanwhile, the developer is also offering investors in its three International City projects the option to swap their properties for units in its Vue Du Lac and Vista Del Lago in Jumeirah Lakes Tower (JLT) development.

"We haven't cancelled the projects in International City; we have put them on hold."

Tavarool said the company had a lot of space in its JLT towers when it had started the swap offer.

"We had about 45 per cent with us as we usually offload only 50 to 55 per cent in the market.

"The rest is kept with us for sale after construction is completed."

According to the developer, it had never sold a unit at the market's peak when prices in JLT averaged at Dh1,600 per square foot.

"We never sold after June 2007 and during the peak. Our current price is Dh700 per square foot net, with a nominal price increase on floor rise. We have got all no-objection certificates; Dubai Multi Commodities Centre is co-operating and we intend to go fast."

The developer's International City projects – Global Point, Vancouver Tower and Toronto Tower – were launched in 2005-2006.

"We will keep the land and not return it. Whenever we get an opportunity to construct we will construct, but we are not sure when we will get this opportunity… this is the reason we are giving this swap offer."

International City clients will also get the option to select residential units in the Polaris tower in Business Bay.

"Our main aim is to settle the issue… if our clients want commercial units then too we are open for that… we have a specific price at which we will offer this deal."

Al Attar has no plans to launch any new projects anytime soon and if anything is launched it will be an addition to its leasing portfolio.

Tavarool said they were in talks with some banks to provide end-user mortgage for all its projects.

"A majority of our clients are cash buyers… but after this crisis we are trying to tie up with certain banks to offer them a financing option," he added.

http://www.business24-7.ae/Articles/...d0a3761c7.aspx

[Sami2009]

If they have invested money in the towers, can I ask where the... are the towers?

[Imre]

Originally Posted by Parisian Girl

Al Attar Properties serves legal notices to investors

http://www.business24-7.ae/Articles/...d0a3761c7.aspx

This is just joke,they want money for what?

The site still just hole as most of their projects , nothing happening there.

[bister]

Originally Posted by Imre

This is just joke,they want money for what?

The site still just hole as most of their projects , nothing happening there.

Exactly, another example of using intimidation (bully the investors) and "generous" offers to "shift" or "downsize" investments made - what is really is a developer which has sold unsustainable projects without the muscle to finish anything out of their own pocket.

Lets face it, OFF PLAN IS DEAD and has been for a long time. All developers who have built empires on off plan has only two options: CANCEL and REFUND INVESTORS or FUND AND FINISH THE PROJECTS and sell COMPLETED PRODUCTS. Since many developers were just in there to milk the Dubai Cow they are not geared for sustaintable business practices, such as being able to finance and finish what they started.

[234sale]

To start construction you need a performance related bond / bank guarantee

As a developer, unless you have buckets of cash, you aint going to get one.

http://www.arabianbusiness.com/504902-under-guarantee

Bonds and guarantees in brief

• Performance security is generally given by a bond or guarantee and can be required in respect of tenders, performance, advance payments, supply, maintenance and retentions.

• Bonds and guarantees are an irrevocable commitment by a bank acting on the instructions of its client to effect payment if they fail to comply with their contractual terms, provided the terms of the bond are met.

• On demand bonds are usually those that are required from contractors. If they fail to meet their contract, the beneficiary can make a written demand to the bank for payment of the bond value.

• Conditional bonds are those where payment is dependent upon proof that the contractor has failed to meet its contractual obligations, this may require the production of a court judgment or arbitration award.

• A surety bond is issued by an insurance company and in the case of a performance bond it guarantees satisfactory completion of a project by the contractor. These require a premium to be paid either for the life or for each year the bond is in place.

• Forms of performance security should be considered with the same degree of care as any other element of the contract terms.

BAA faces the same fate as no construction company is going to JV with any developer, especially a privately owned developer.

[ardi]

I know investors in Skyscraper who already paid 40m, the cost of the shoring and piling is less tan 20m for SS and Polaris.

[cayman1]

The money is gone

[234sale]

[IMG]http://i46.************/so5oc1.jpg[/IMG]

[Imre]

25/April/2010

The Skyscraper

[IMG]http://i43.************/nxsaf.jpg[/IMG]

[Imre]

10/July/2010

The Skyscraper

[IMG]http://i25.************/314uiy9.jpg[/IMG]

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[Face81]

According to 234.........

Originally Posted by 234sale

It's starting again...

[Blizzy]

This is unexpected.

[234sale]

http://www.skyscraperlist.com/showth...R-66F-Com-330m

They are dewatering and exposing piles..

[Blizzy]

How about finishing that monstrosity on SZR first, huh?

[Face81]

It's alive!!!





Status change to "Ground Work" required

[Blizzy]

Originally Posted by Face81

Status change to "Ground Work" required

Let's wait a little more. We already had such movement here two years ago, they drilled some piles and went elsewhere. Actually If they reach ground level without any stops I will be surprised.

[Blizzy]

So is there anything happening here? 1,5 months have passed without any updates, so I assume it went back to being on hold?