Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Mon
Sep 01st
Lost Password? Register
Home arrow News arrow Middle East arrow Property investors get refund deal on stalled Dubai project

Property investors get refund deal on stalled Dubai project

Monday, 30 January 2012

Image

Property investors in Dubai have managed to negotiate a deal for payments on a stalled project to be refunded without resorting to court action.

Investors in Dubai’s Palm Springs project said that property developer Damac has started refunds on payments made for their uncompleted properties.

Buyers on the Palm Jebel Ali project, who have waited eight years for construction to begin, were previously offered a 70% refund of their deposits, or 25% immediately followed by a further 25% annually for the next three years.

Of the 48 investors involved, 21 have received payment, and a further 27 are expected to receive their cheques in the next two weeks.

‘We received cheques for almost half of the investors. The cheques for the other half are in the process of being arranged,’ said Fareya Azfar, partner and head of arbitration at The Legal Group, who advised the investors.

‘The group of investors believed that a partial refund was not a fair compensation, so they wanted us to negotiate with Damac in the hopes of reaching a more acceptable settlement,’ he explained.

Investors had initially hoped to receive compensation for their lost investment, but settled out of court with the developer in a bid to avoid a lengthy legal battle.
 
‘The investors are pretty satisfied. They were told that we don’t know of any developer in United Arab Emirates who gave a 100% refund in one payment without a court case initiated against them,’ he added.

Announced during Dubai’s real estate boom, Palm Springs was designed to be a 25 storey beachfront development located on Nakheel’s Palm Jebel Ali island, but stalled in the wake of the emirate’s real estate crash.

Damac had attempted to cancel the project in 2008, but the move was fought by investors in the Middle East and the UK. Damac later agreed to reinstate the development, and wrote to investors last year to say it was in discussions with Nakheel, and a decision on Palm Springs would be made in December.

In a statement Niall McLoughlin, senior vice president of corporate communications at Damac, said the company had been committed to solving the dispute and was happy to have reached an agreement.

Meanwhile, investors in Dubai’s Remraam Community have petitioned the emirate’s ruler to intervene in a dispute with the project’s developer, after they were told they risked fines if they failed to accept the handover of properties in the unfinished complex.

The development was scheduled to be completed in June 2010, complete with pools, malls, landscaping and retail features but owners said in a petition to the Ruler’s Court that they were being forced to accept properties without water and electricity connections.

Buyers have also asked for compensation for losses incurred during the delay of the handover, such as interest on mortgage payments.

‘We are being forced to take possession of half baked apartments and communities in Remraam, which is in the middle of the desert with no amenities and no DEWA. The electricity is provided through generators,’ said a spokesperson for the action group.

Developers DPG said the basic infrastructure for the project was in place, and denied charging home owners service fees before their units had been transferred.

It added that it has tried to help buyers who are struggling to meet payments.‘We have offered a series of initiatives to help our customers that include price reductions, unit upgrades, late payment fee waivers, family consolidations, deferred payment plans etc,’ the statement said.


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here






West Tower

West Tower

Car park

West Tower

home rental guide

Limousin Guide

Barratt Homes

Limousin Guide

West Tower

Middle East: Top Headline

Dubai developers urged to offer rent to own schemesDubai developers urged to offer rent to own schemesDevelopers in Dubai should introduce rent to own schemes to help many buyers who can no longer afford homes in the emirate’s booming residential real estate market it is claimed.

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Company news

Estate and lettings agents UK advert campaign launched

The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) have launched a new regional TV campaign to raise awareness among consumers of the importance of using an NAEA or ARLA licensed agent.

Finance Update

Barclays trims mortgage rates to attract more first time buyers

Barclays has launched new and reduced mortgage rates which it says will support first time buyers and those customers with a smaller deposit.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our Middle East property and real estate news feed (RSS)