#PROJECT: ESCAPE

[Escape Rep]

Dear All,

With regards to the phone numbers, just to make sure, below is the office number:

06 - 746 3335

We have had issues where the call is not coming through on our side, while it is ringing on the phone. I believe this may be due to some work being done in the surrounding areas. If anyone is still having issues contacting us on the phone, please send me a private message with your unit details, or number, and i can follow up with the assigned CSR, and have them contact you.

[zana9]

hi people, i am also an investor. I am committed on seeing this through and hopefully will be living there eventually. Does anyone have any good news?

[buster007]

Originally Posted by Escape Rep

Dear All,

We have had a very constructive meeting with ARRA, and are in agreement on a strategy to move forward. ARRA and Escapes concern is the assurance from clients that they do want to move forward, and follow their commitments. It is agreed that a letter will be sent to clients, with a copy going to ARRA as well. This letter will request the client to acknowledge the phasing strategy of construction, and most importantly confirm in writing that they will be making the rest of their payments during the period of construction. The seriousness of clients will be gauged by the speed that they respond to this request.

The first group of clients to be contacted will be the committed clients, followed by the next group of clients who are interested in moving ahead with the project.

It is important to understand that the uncertainty we face, and the hesitation we have had in the past has also come from people who have not met their commitments, in some cases for over a year. Fortunately we can all move forward, and put this behind us, and establish our intentions moving forward, as well as our commitments. We hope you are as excited as us with the continuation of construction, and look forward to the coming months.

Is there any progress with regards to above and/or a time line to conclude the ARRA agreed "strategy to move forward" ?

[sharjahwanderer]

I am one of you as i have invested in Escape. I suggest that all of us may visit http://www.ajmaninvestors.com/ and read carefully. It will help you to understand the general situation with real estate projects in Ajman. I believe that only action by a big group can save all of us so i suggest to register at this site to start with. We are not alone..

[shumila]

Still no progress I see...

Has the strategy agreed with ARRA by the devloper been revealed to anyone? Or is it a big secret still? I thought the developer was contacting investors with some fantastic news...not heard a thing nor has anyone I know who has invested in the project.

Just looked at the http://www.ajmaninvestors.com/ link and strongly advise all to join.

Other forms of action to be taken include

- formally write to the developer asking them to acknowledge that the project is no longer viable.

- formally write to the ruler of Ajman and the Crown Prince of Ajman they both have offices and offical palaces in Ajman. Highlight to them the harm developers are doing regarding the reputation of Ajman.

- write to the supreme council of UAE ask for an enquiry

- formally write to your Embassay asking for their support or for them to contact ARRA on your behalf

- write to Ajman Bank regarding the Escape Escrow account - that account holds your money NOT the developers!

- write to the Editor of the Gulf News & Khaleej Times

- write to all serious news channels especially Dubai Eye Business Breakfast show

- write to Anwar Sher the MD of Escape and ask for a copy of financial statements, management accounts or another evidence that the project is moving forward.

In short keep up the pressure on these people as it is clear that this project will not happen as the proposed infrastructure of the Emirate itself has imploded along time ago. Shame the developer will not admit that...

[buster007]

I think the developer should concede that the project in the current economic climate is not feasible, and efforts should commence to settle with investors.

ARRA and most investors recognise that investing in a villa at original price is a loss in the current market. This I believe is one of the reasons why the current efforts by ARRA is to gauge how many investors will be willing to proceed with such a purchase.

I wonder how many investors would decide to go ahead with their purchase, and whether this would trigger ARRA to give the "go" for the project OR that they decide the project be cancelled.

I do wish Escape contact all investors, and issue an official statement on the current status.

[andimate]

The 328 metre skyscraper Index Tower by Union Properties is 2 years behind schedule and 30 investors have filed a breach of contract for non delivery.

Not too sure if this is a class action or 30 individuals.

Also, a German investor (9.7 million Dhs) is chasing them for return of monies and damages - via Al Sayyah Advicates and Legal Consultants.

Looks like legal procedures are starting to roll.

[dwarish]

I have visited the site yesterday and found that the sign board has been grounded, the horses themes become camel, I found camels are just roaming on the bare land.

No one worried about the Escape hording boards which has been grounded so long... all are escaped from the project of Escape.

[LisaGG]

To all Escape Buyers,

I am trying to set up a committee so we can all discuss on the way we can collectively move forward. There are already a number of us communicating with each other which is most helpful, but I believe we will have a stronger voice if we increase in numbers.

Please contact me on either loumarshall@lycos.com or 050 3782657.

Many thanks.

[alsalam]

See http://www.thenational.ae/apps/pbcs....705189859/1010

Anyone had any news from Escape or ARRA?

[fsjstar]

I heard from developers that ARRA give escape and other stopped project to start in one month or they will cancel there projects

[234sale]

Suggest facebook group for investors

[Josau]

Originally Posted by fsjstar

I heard from developers that ARRA give escape and other stopped project to start in one month or they will cancel there projects

It's about time ARRA comes to this conclusion. They set up a dead line to register with them. We are a year after the dead line. Usually a dead line means you have to do something by that said DEAD LINE. For those, who haven't done it they are ILLEGAL and should be treated as such. My developer Star Giga claims, that Ajman cancelled all projects along Emirates Road except EC and Uptown and that the focus was on EC and Uptown alone. Others claim even 50% of EC is cancelled ( the left side when looking at the master plan). I'd say: forget about all of it, as there are no people to fill theses flats up with.

[LisaGG]

I have had a meeting with Adil Sher (Escape) folllowed by a visit to ARRA approx 10 days ago. The update is that ARRA are currently putting a letter together to send out to all us Escape Buyers. They would not confirm the content, or commit to an issue date. Escape do not have any input or any idea what this content is either. It is purely from ARRA. This will be distributed to us through Escape, so I would suggest everyone ensures Adil has your latest address details.

The main contact at ARRA dealing with Escape is a lady called Suha Al Mahsiri (Email add suha.m@Arra.ae). Suha did advise the letter would take approx 3 weeks, but that was said two months ago also. I am going to start chasing by email on one week.

I also had a missed call from a guy (Escape Buyer) in the UK who left a message, but it got deleted automatically after 3 days, before I went back to get his contact details. Could this person please txt me his email address so I can include him on any email updates (apologies whoever you are).

I personally feel this letter will ask whether we are definately in or out. If you're in, then start making payments again, if you are out, then you are cancelling from your side, hence all funds will be lost. But hey, I may be proved wrong!!

[buster007]

Originally Posted by LisaGG

I personally feel this letter will ask whether we are definately in or out. If you're in, then start making payments again, if you are out, then you are cancelling from your side, hence all funds will be lost. But hey, I may be proved wrong!!

I was of the opinion that the communication from Escape to the investors back in Dec 2009 was to determine just that - whether investors were in or not. This was then meant to be communicated with ARRA to decide on a "go" or "stop" on the development. Sounds like nothing was achieved with that.

Anyhow, if it was to go ahead and be realised, is there any word on an adjustment of the original purchase price as these prices were set at the height of the market.

With an obvious oversupply of units in DUbai and a huge decline in construction costs, I think such an adjustment would be appropraite.

[buster007]

1 more month on, and not a single word.
This project wont happen and personally wish the developer comes straight and throws in the towel.

There isnt a single project today in the UAE that can be started without Government or institution backing. The project if it remains as is - relying solely on investor funding is simply not viable.

[alsalam]

Anyone heard anyhting from ARRA or Escape? There was an FT article about Ajman which might be useful for people. -

Article Financial Times
Ajman’s towers leave legacy of despair
By Simeon Kerr in Dubai
Published: August 4 2010 17:33 | Last updated: August 4 2010 17:33
The dense banks of half-constructed towers in Ajman’s Emirates City loom over the horizon from miles away, testament to the distance travelled by Dubai’s property woes.

Envisioned as a community of about 90 towers, the dozen or so skeleton structures stand dormant. Ajman, one of the smaller members of the United Arab Emirates, followed Dubai’s lead and established itself as a budget version of the city-state’s deluxe real estate sector.

Emirates City, which lies about 50km from central Dubai, could have become another thriving dormitory for the booming Dubai economy. But it has fallen victim to the problems of its neighbour’s property sector: excessive speculation turning to despair as developers scrabble for cash amid a collapsing market.

Hundreds of investors are considering pursuing legal action against developers at the Emirates City complex.

An opinion poll on the most popular online forum dedicated to Emirates City suggests that two-thirds of buyers are stopping payments, with a fifth continuing to pay developers and 9 per cent having rescheduled instalments. Only 3 per cent say they are pursuing legal action, but some of those are winning – and recovering cash.

Lawyers have won final judgments against a few other developers in Ajman and, crucially, recovered funds by placing court orders against these developers’ assets.

Dave, a British national who works in training, in 2008 bought three units in Goldcrest Dreams 4, which is being developed by StarGiga, a joint venture with ETA Star, an established Dubai conglomerate.

With contracts delivered late and no sign of construction progress, he tried to negotiate last August, accepting that he would lose his deposit if he could exit. But the developer refused, claiming force majeure owing to the lack of infrastructure from the master developer.

Dave contacted the Ajman Real Estate Regulatory Agency, the regulator formed in 2008, which issued a letter allowing him to pursue legal action.

The court last month issued him with a judgment for about Dh250,000 ($68,000) plus a 5 per cent compensation after only two weeks, which is considered a speedy judicial resolution in the UAE. The developer, however, is appealing.

StarGiga executives declined to comment when contacted, saying the company’s chairman was the only official cleared to speak. He was unavailable for comment.

By winning a judgment, investors become secured creditors against their developer, rising up the chain of those owed money in case of bankruptcy, says Sunil Thacker, partner at Dubai-based The Legal Group. But concerns are growing that some of these developers may not have the cash available to meet the proceeds of court judgments.

“Those who have not filed may find it difficult to recover monies at a later stage as a developer may run out of funds or declare bankruptcy,” said Mr Thacker.

Omar al-Barguthi, director-general of ARRA, says its mission is to seek reconciliation where possible. “We try to stand on mutual ground and pass judgments or guidance towards people who have been victims of their own decisions and ignorance,” he says.

Most developers are acting in good faith, willing to proceed with construction as long as they have enough buyers who want to pay and receive their units.

Many investors, he adds, were speculators seeking a quick profit and have no intention of paying for properties that have suffered price corrections of up to 60 per cent.

“Our priority is to support developers over individual investors as one developer can cause a few hundred investors to collapse with him,” he says.

The agency has been working with developers, such as Paradise Lakes and Ajman Uptown, to trim their property plans, consolidating units from multiple buildings into a smaller number of towers.

The government has also bought back some private sector developments, such as Helou Downtown, and will proceed according to demand, Mr Barguthi adds.

Ajman aims to limit new units to 25,000-30,000 by the end of 2015, a number that would have been 10 times that amount had all the planned freehold projects proceeded, says Mr Barguthi. But he concedes that there are some “unco-operative developers”.

The agency is also involved with other initiatives. This month, the government is expected to issue a new law regulating construction, cancellation and collection of funds, and defining a formula for cancellation of projects depending on the level of construction and monies collected.

Ajman is also preparing a dispute resolution committee that could act as a de facto arbitration body once federal approval is finalised.

In the meantime, lawyers are waiting in the wings, but investors have to launch claims individually, raising court costs.

Saif al-Shamsi, partner at TLG, laments the lack of class-action procedures under UAE law. “There are several purchasers who are interested in filing cases collectively and we hope that the judiciary opens the door for this representation,” he says.

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[buster007]

....

[buster007]

Any updates, peeps ?

[andimate]

I have another investment in a different Ajman project and just received an update from them.

They have just opened an Escrow account with Ajman bank, offered reassurances on the yet to be started project, offered me the chance to swap to a different Ajman project and informed me that there are new guidelines issued by ARAA.

They were attached but haven't looked at them thoroughly. Looks like something is happening in Ajman but still a long time away from any real answers/progress.

Did a facebook page every start?