Dubai UAE News from the Press Property Market Disaster and More

  • November 2008
    M T W T F S S
    « Oct   Dec »
  • Middle East Unrest Update

  • Talk of the Town

    Jo Hopworth on Justice For Natalie – Na…
    Mariam on Criminal Complaint filed in Ge…
    Martin Kraeter on ACI Dubai Funds filed bankrupt…
    Independent Observer on Iranian’s lawsuit reveals roya…
    Rado on DubaiTouristen landen schnell…
    Dubai Citizen on Al Fajer Properties Case…
    Dane on Outlook in concrete- Dubai Wor…
    jamesl fayad on RERA Dubai – Dubai Prope…
    Jacques on Malika Karoum finally arrested…
    James Brown on ACI – Alternative Capita…
    Journalist on Al Fajer Properties-500 Invest…
    ron oakeley on ACI – Alternative Capita…
    Benson Fu on Shahram Zadeh against Al Fajer…
    Monika on RERA – Dubai mulls cance…
    Ali Varahram on Shahram Zadeh against Al Fajer…
  • Top Rated Comments

  • Top Posts

  • RSS Dubai United Arab Emirates Property Real Estate Debt Fraud Developer Investor Court News

    • Criminal Complaint filed against Al Fajer Properties Sheikh Maktoum
      Criminal Complaint filed in Germany against Sheikh Maktoum Hasher Maktoum Juma Al Maktoum CEO of Dubai Developer Al Fajer Properties The Dubai Sheikh who mislead and extort a German Couple  Germany – Dubai 2011 A German elderly couple , today 80 + 50 years old who have been Dubai Tourists since a decade, bought in 2005 an apartment at Nakheel´s Dubai Residen […]
    • UAE: Human Rights Blogger, Sorbonne Lecturer Charged With ‘Humiliating' Officials
      source Human Rights Watch www.hrw.org (Beirut) - The United Arab Emirates attorney general should immediately drop all charges against five pro-democracy activists to halt their trial, Human Rights Watch said today. The charges of "humiliating" top officials relate solely to the defendants' peaceful use of speech to criticize the UAE governmen […]
    • Nakheel Dubai Sunland Case
      June 5, 2011After 21 hearings, Chris O'Donnell, the Australian chief executive of Dubai's major developer, Nakheel, came to the defence of his former colleagues Matthew Joyce and Marcus Lee. Mr Joyce and Mr Lee are accused of profiting from the sale of land that had been earmarked for a colossal high-rise development, which was to include the futur […]
    • Dubai Nakheel CEO decided to leave the company
      Dubai June 7, 2011 Nakheel said on Wednesday that its CEO Chris O'Donnell had left the company "after completing his contract terms". O'Donnell, an Australian who joined the developer in 2006, said he had decided to leave Nakheel following five years spent with the company, the statement added. O'Donnell has overseen a traumatic time […]
    • Owner of Dubai Developer Damac Hussain Sajwani files case against Egypt corruption ruling
      Dubai property developer Damac said on Tuesday it had filed an international arbitration case against Egypt over a land dispute and the conviction of its chairman and owner, Hussain Sajwani.A Cairo court last week sentenced Sajwani in his absence to jail and ordered him to pay a $40.5 million fine in connection with his 2006 purchase of land at Egypt's […]
    • Dubai Palm Jumeriah - Investors plan to take legal action
      Investors in Dubai Palm Jumeirah’s Golden Mile complex will this week serve the developer behind the project with a legal ultimatum to hand over their units or issue them with a refund.Up to ten investors in the luxury complex plan to issue Souq Residences with legal notice in a bid to force a resolution to a dispute that has been ongoing for more than a yea […]
  • Top Rated Posts

    • 414,086 visitors 2010
  • Disclaimer 7 Stars Dubai

    This Website of the Blog 7starsdubai.wordpress.com and 7starsdubai.com content still existing media releases and comments from reputated press and websites only. The content of this Website focus to consumer protection for Investors of the Dubai Property market, the UAE and the Middle East. Press Article from the international Press who report about Fraud in relation with Property Investment and Real Estate Developer Investor Disputes in Dubai and the UAE as well reports from the Press about other criiminal acts and Civil Real Estate cases, Lawsuits before the Court in Dubai, the UAE or other countries. Furtheron we show reports about consumer protection and human rights in the Middle East. Actual Topics about the Unrest in Middle East. The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of this site does not constitute advice or a recommendation by us.Communications and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this Web site. We can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on this Web site nor do opinions of contributors necessarily reflect those of us.In no event shall we be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to this Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise. Comment Rules: Although the administrators and moderators of 7starsdubai.com will attempt to keep all objectionable comments off this Blog, it is impossible for us to review all comments . All messages express the views of the author, and neither the owners of this Blog, nor the administrator of this Blog will be held responsible for the content of any message, comment. By agreeing to these rules, you warrant that you will not post any messages that are obscene, vulgar, hateful, threatening, or otherwise violative of any laws. The adminstrator of this Blog reserve the right to remove, edit, move or close any comment (message) for any reason This Blog content still existing media releases and comments from websites only. The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of this site does not constitute advice or a recommendation by us.Communications and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this Blog. We can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on this Web site nor do opinions of contributors necessarily reflect those of us.In no event shall we be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to this Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise. Copyright: The copyright to the text of the blog is held by the author or link as source provided, where applicable. All images displayed are copyright their respective owners and are used either under licence or under the fair use provisions of international copyright law. The information contained in this Web site is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or inaccuracies in information contained in this site. Accordingly, the information on this site is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. Before making any decision or taking any action, you should consult the administrator of this website. While we have made every attempt to ensure that the information contained in this site has been obtained from reliable sources, 7starsdubai.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this site is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will 7starsdubai its related partnerships or corporations, or the partners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this site or for any consequential, special or similar damages, even if advised of the possibility of such damages. Certain links in the Web site connect to other sites maintained by third parties that may or may not be presented within a frame on the Web site. 7starsdubai.com has not verified the contents of such third party sites and does not endorse, warrant, promote or recommend any services or products, that may be provided or accessed through them or any person or body which may provide them. 7starsdubai.com has not issued or caused to be issued any advertisements which may appear on these Web sites. We do not review, monitor or endorse any third party web sites linked to Our Site and We are not responsible for the content of any web site linked to Our Site. Your access to any web site that links to Our Site is at your sole risk. We are not responsible for the information, material, products, or services contained on or accessible through such other web sites and will not be liable for any form of loss or damage arising as a result of or in connection with your visits to such web sites. Any links to other web sites are provided merely for the convenience of the users of this Site and the inclusion of these links does not imply an endorsement of the linked web sites or the content therein. In addition, you agree not to link your web site or any other third party web site to Our Site or frame Our Site as part of any other web site without Our express prior written consent. We reserve the right, at any time and for any reason not prohibited by law, to deny permission to anyone to link a web site to, or frame, Our Site. We reserve the right to withdraw Our consent at any time to a link to, or framing of, Our Site at Our sole discretion without notice. Your use of this Site and the operation of these Terms and Conditions shall be governed by and construed in accordance with the laws and regulations of and applicable in Germany You agree, acknowledge, and submit to the Court in Germany having non-exclusive jurisdiction over all and any dispute or difference between us arising out of or in connection with this Agreement. Please review these Terms and Conditions carefully before using this Site. Your use of this Site indicates your irrevocable agreement to be bound by these Terms and Conditions (as may be amended by Us from time to time). If you do not agree to be bound by these Terms and Conditions please stop accessing and using this Site immediately. Warning: We are aware that several times Cybercriminals mirrowed our Website and posted on several Forums, Website comments by misuse of our email adresses. These Cybercriminals registerd several similar looking Domains and installed several 1:1 mirrowed Websites which look like our Website 7starsdubai. We have already taken the necessary steps by filing criminal complaints against the Individuals behind this Identity theft an Cybercrime, by misusing fraudulently our Blog Identity 7starsdubai. In Search engines like Google, Yahoo, Bling and others you should always take a close view to the links. If this links do not originaly start with www.7starsdubai.com or http://7starsdubai.worpress.com/.... you will end on a faked mirrowed modificated Website. The genral Background of this Cybercriminals is a Stalking and Smear campaign, faking stories for their personal use, to discriminate Persons with the goal to destroy their reputation.
  • RSS ZDF Heute Germany

    • Untitled
    • Gedenken im Schatten der Weltpolitik
      70 Jahre Auschwitz-BefreiungProminente Gästeliste beim Gedenken in Auschwitz. Einer fehlte: Wladimir Putin. Das Gedenken wurde überdeckt vom aktuellen politischen Streit. Wollte er nicht oder durfte er nicht? Auf jeden Fall war er im Jüdischen Museum in Moskau - und würdigte die Rolle der Roten Armee bei der Befreiung von Auschwitz.Video Ohne Putin: Auschwit […]
    • "Plötzlich wurden alle Geschichten lebendig"
      Kinder von Holocaust-ÜberlebendenDorit Sodowsky ist ein unglaublich heiterer Mensch. Sie reist gerne und hält alle Erlebnisse mit dem Fotoapparat fest. Doch in ihrem Leben gibt es einen riesigen Schatten, einen Schatten der Kindheit. Dorit Sodowskys Eltern sind Holocaustüberlebende.Video Trauma der zweiten GenerationVideo Dorit Sodowsky über ihr LebenInterak […]
    • Fotografien gegen das Vergessen
      Vor 70 Jahren: Befreiung von AuschwitzEin Fund von historischer Tragweite: Die ungarische Jüdin Lili Jacob findet 1945 kurz vor Ende des Zweiten Weltkrieges ein Fotoalbum mit seltenen Bildern aus Auschwitz. Auf den Fotos entdeckt sie ihre Brüder, ihre Großeltern – und auch sich selbst.Interaktiv "Das Auschwitz-Album"Infografik Die Opfer von Auschwi […]
    • Merkels Machtverlust
      Ende der Sparpolitik?Für Angela Merkel ist die Wahl in Griechenland eine Niederlage. Ihre Sparpolitik - in Griechenland findet sie keine Mehrheit mehr. Und auch in Frankreich und Spanien regt sich Widerstand an ihrem Sparkurs. Bröckelt Merkels Macht von Europa aus?Video Alexis Tsipras gewinnt die WahlVideo EU-Spitzen gegen SchuldenerlassVideo ZDFspezial Sieg […]
    • Neue griechische Minister fordern Schuldenschnitt
      Regierungsbildung in AthenPolitik im Rekordtempo: Nur zwei Tage nach der Parlamentswahl steht die neue griechische Regierung. Ministerpräsident Tsipras gab zwei scharfen Kritikern der Sparpolitik die Zuständigkeit für Finanzen - und beide wollen, was die EU-Partner verhindern wollen: einen Schuldenschnitt.Video ZDFspezial Sieg für SyrizaVideo Was will die li […]
    • Rost, Schimmel und Möbel von 1972
      Zustand der BundeswehrDie Bundeswehr quietscht. Marode Kasernen, kaputtes Gerät und zu viel Arbeit. Kein gutes Bild, das der Wehrbeauftragte von der Truppe zeichnet. Die Ministerin bemühe sich, die Mängel zu beheben, erkennt Helmut Königshaus an. "Wir brauchen einen langen Atem“, wirbt Ursula von der Leyen um Verständnis.Video Truppenbesuch in Afghanist […]
    • Regierung fordert mehr Geld für Altenpfleger
      PflegenotstandPflege in Not. Die Regierung will die Pflegeversicherung neu ausrichten. Auch die schlechte Bezahlung vieler Pfleger soll verbessert und die Ausbildung vereinheitlicht werden. Außerdem soll es künftig statt drei Pflegestufen fünf Pflegegrade geben.Video Lohngefälle in der KrankenpflegeGrafik Pflege am FließbandVideo ZDFzoom: Auf Kosten der Alte […]
    • Zum Bankautomat? Nur mit Passierschein
      Not in der OstukraineDauerbeschuss, zerstörte Häuser, Kälte. Der Ukraine-Konflikt trifft vor allem die einfachen Menschen. In der Ostukraine hausen viele in Ruinen. Um zum nächsten Bankautomat zu kommen, brauchen sie nun Passierscheine. Auf der Notlage der einen basiert das Geschäftsmodell der anderen.Video Alltag in der OstukraineVideo Ukraine-Krise: Merkel […]
    • Streit über den Preis der guten Tat
      Globale Impfallianz GAVIIn Berlin sammelt die globale Impf-Allianz "GAVI" Milliarden, um Kinder in den ärmsten Ländern der Welt zu schützen. Doch "Ärzte ohne Grenzen" klagt über viel zu teure Impfstoffpreise und fordert von Kanzlerin Merkel Druck auf die Pharmaindustrie.Video Kleiner Piks: Nicht unumstrittenVideo Impfen - nein danke?
    • Gentechnik durch die Hintertür
      TTIP und LebensmittelMehr als 70 Prozent der deutschen Verbraucher lehnen laut einer Umfrage gentechnisch verändertes Essen ab. Da kommen Versprechen der deutschen Politik gut an, künftig für striktere Standards für Gentechnik einzutreten. Doch tun sie das wirklich?Video Gentechnik durch die HintertürVideo Freier Handel durch TTIP?Video TTIP: "Jahr der […]
    • Neureuther wird Dritter in Schladming
      Ski Alpin | SlalomFelix Neureuther hat im letzten Rennen vor der WM noch einmal ein Ausrufezeichen gesetzt. Der 30-Jährige fuhr beim Weltcup-Slalom im Hexenkessel von Schladming auf einen starken dritten Platz. Den Sieg holte der Russe Alexander Choroschilow.Video Neureuther Dritter in Schladming
    • Aufsichtsratchefin Schwedler - Zwischen Pyro und Kommerz
      Aufsichtsratschefin des FC St. PauliSandra Schwedler ist nicht nur die erste Frau, die an die Spitze des Aufsichtsrats eines deutschen Profiklubs im Männerfußball gewählt wurde. Ungewöhnlich für diesen Posten ist auch ihre Geschichte als Kämpferin für Fanrechte. Mit ihren Positionen zu Pyro und Kommerz wird sie die Fußball-Branche bereichern.
    • Spielzeug: Was Eltern wollen, was Kinder wollen
      Nürnberger SpielwarenmesseKreativität fördern, ein kleiner Wissenschaftler sein - derlei steht auf dem Plan der Nürnberger Spielwarenmesse. Klingt pädagogisch prima. Und die Kinder? Wollen mitunter gar nicht so spielen, wie Eltern es sich wünschen. Psychologe Andreas Engel erklärt im heute.de-Interview, warum.Bilderserie Wie's Kinder gerne hättenVideo D […]
    • Untitled
    • Netanjahu in Yad Vashem: Iran bereitet Völkermord gegen Juden vor
      27.01.15 23:40 | Israels Regierungschef Benjamin Netanjahu hat Iran zum Holocaust-Gedenktag die Vorbereitung eines "neuen Völkermords" vorgeworfen. Die Juden und der Staat Israel würden "seit Menschengedenken" gehasst, sagte er in der Holocaust-Gedenkstätte Yad Vashem. "Die iranischen Ayatollahs leugnen die Realität des Holocausts, w […]
    • Apple stellt neuen Gewinnrekord für Quartal auf: 18 Milliarden Dollar
      27.01.15 23:17 | Der Erfolg des iPhone 6 hat Apple Rekordzahlen im Weihnachtsgeschäft beschert. Der Gewinn im vergangenen Vierteljahr erreichte 18 Milliarden Dollar - soviel hat noch kein US-Unternehmen in einem Quartal verdient. Für Apple war das ein Sprung von über 38 Prozent im Jahresvergleich. Der Konzern verkaufte 74,5 Millionen iPhones - nach 51 Millio […]
    • Yahoo will Alibaba-Anteil in Investmentfirma ausgliedern
      27.01.15 23:06 | Yahoo will seinen restlichen milliardenschweren Anteil an dem chinesischen Online-Händler Alibaba abstoßen, ohne Steuern zahlen zu müssen. Die 15-prozentige Beteiligung soll in eine neu zu gründende, unabhängige Investmentgesellschaft ausgegliedert werden, teilte der Internet-Pionier mit. Der Alibaba-Anteil wird derzeit mit rund 40 Milliarde […]
    • Union will Dokumentationspflichten bei Mindestlohn abschwächen
      27.01.15 22:45 | Die Unionsfraktion will das Mindestlohn-Gesetz durch eine Abschwächung von Dokumentationspflichten korrigieren. Die jetzige Schwelle für den Nachweis der Arbeitszeit der Mitarbeiter bis zu einem Gehalt von 2.958 Euro soll auf 1.900 Euro herabgesetzt werden. Für geringfügig Beschäftigte soll die Dokumentationspflicht abgeschafft werden, wenn […]
    • Dänemark: Einigung über Antiterrorplan
      27.01.15 22:13 | Das dänische Parlament hat sich auf einen neuen Antiterrorplan geeinigt. Damit wollen die Dänen vor allem verhindern, dass junge Menschen sich radikalisieren und etwa für die IS-Terrormiliz in den Krieg ziehen. Heimkehrer sollen Angebote erhalten, um radikale Kreisen zu verlassen. Unter anderem soll ein Zentrum für junge Menschen entstehen, […]

Archive for November 22nd, 2008

Ratings agency puts ETA Group on credit watch – Real Estate – ArabianBusiness.com

Posted by 7starsdubai on November 22, 2008

Ratings agency puts ETA Group on credit watch – Real Estate – ArabianBusiness.com

Ratings agency Standard & Poor’s put Dubai-based ETA Group on negative watch on Thursday with a view to downgrading its credit rating due to concerns over the construction and property-dominated firm’s increased leverage.

Standard & Poor’s placed the firm, whose property division has a $10 billion portfolio, on CreditWatch with negative implications with long-term BBB- corporate credit rating, the ratings agency said in a statement.It also put a ‘BBB-‘ debt rating on a $300 million senior unsecured bank loan due 2012 issued by subsidiaries Emirates Trading Agency, ETA Star Holdings, and Associated Construction and Investments Co.

The potential downgrade to junk rating is the latest indication Dubai-based companies are feeling the squeeze from tighter lending conditions, a fall in property prices and a collapse in investor confidence as the global credit crunch begins to sweep across the Gulf Arab region’s trading hub.”These actions are due to concerns over increasing financial leverage, the likely adverse effect of the continuing global economic slowdown on ETA’s cyclical activities, and low levels of headroom under financial covenants,” said Standard & Poor’s credit analyst Stuart Clements.ETA’s construction unit is the sixth largest UAE contractor, according to a survey by London-based MEED magazine.

Its real estate arm ETA Star Properties said in October it planned to sell Islamic bonds worth up to $200 million in the first quarter of next year to fund expansion in North Africa and Europe and was planning to develop residential and office towers in the Russian capital Moscow with a value of $600 million next year.”

ETA’s debt levels have risen significantly in recent years to meet increasing working capital demands from both higher commodity prices and the company’s rapid growth in revenue,” S&P said.The group also operates in mechanical engineering, car trading and shipping – all sectors “considered to be highly sensitive to economic conditions”.”The recent collapse in prices in the dry bulk shipping market (81 percent of ETA’s fleet), of about 90 percent from the 2008 peak, may put pressure on some of its time charter counterparties and lead to some renegotiations,” S&P said.S&P will conclude the CreditWatch within 90 days.

ETA Star executive director Abid Junaid could not immediately be reached for comment. (Reuters)

Posted in Dubai | Comments Off

Party like it’s 1999 – Media & Marketing – ArabianBusiness.com

Posted by 7starsdubai on November 22, 2008

original published ArabianBusiness

It may seem incongruous or even insensitive to host a $20 million party in the current economic climate but, once again, Dubai has shown strength and vision that will improve its long term prospects.I watched the opening party of Atlantis the Palm on the television in the UK.

The country’s most popular breakfast television show, GMTV, was broadcasting live twice per hour from one of Palm Island’s fronds.The coverage included red carpet interviews with Hollywood Oscar winners, multi-million album selling singers, business billionaires, and even some minor European royals.

Breakfast TV viewers feasted on footage of the most spectacular firework display since the Beijing Olympics; lapped up the glamour of the world’s most beautiful women; and envied at the presenter reporting in his shirt sleeves from beneath clear blue Dubai skies.

The talk over Friday brunch in Dubai will be about how unfair it is that the world’s glitterati had favoured access to the Atlantis celebrations, while those living in the city were not even allowed to set foot on Palm Island for two days prior to the event.This though would be missing the point.

The cost of the world’s most lavish hotel opening party was not just an ego trip for the resort’s owners, or even a marketing stunt to push up its revenue per average room.
It was a Dubai government-backed initiative to show the world that the city remains one of the most spectacular tourist destinations in the world, and that it will serve as an oasis of delight in a global desert of gloom.

The world is entering a downturn in tourism and business travel that will last into 2010.

But while every destination will be affected, including Dubai, some will suffer more than others.

The positive coverage gained from Atlantis’s $20 million party will prove to be a masterstroke of marketing that will ensure Dubai has the best possible chance to weather the coming storm.

By the end of what is going to be a global recession, expect the emirate to emerge even more dominant against its competitors than it is today.

Posted in Dubai | Comments Off

Property Scandal -Dubai developer demands up to 88% increase on price to pay construction costs | Dubai Property

Posted by 7starsdubai on November 22, 2008

Dubai developer demands up to 88% increase on price to pay construction costs Dubai Property

original published: AME info

The company behind the Prodigy development in Dubai’s Jumeirah Village, MiNC, has sent a letter to investors asking for extra capital to cover construction costs after cash flow shortages caused by the withdrawal of project financing by the two funding banks.

The letter from MiNC‘s CEO explains the company’s financial situation to investors. MiNC says that despite the land purchase being finalised in October 2006, Nakheel only actually delivered the land for construction in May 2008. This has led to: ‘
A significant negative impact on the project; a doubling of construction-related professional fees and a large increase in government imposed costs.’ In addition: ‘The arrival of the global financial crisis has had a severe impact on the monies MiNC has available to build Prodigy 1.
We are no longer able to subsidise construction of the project; the project needs to be self-funded as originally intended.’

MiNC faces two further problems. New regulations introduced by the Dubai government have meant that the company’s original economic blueprint of using finances from the whole project to fund construction on Prodigy 1 is no longer legal. This has then been compounded by the withdrawal of project financing by two local banks.

Difficult financial situation’We are in an extremely difficult situation,’ Simon Everest, Director of Operations at MiNC told AME Info. ‘Banks have pulled all the finance, so we have the choice of either sitting, doing nothing and waiting it out, like some of our competitors are doing, or we need to find another solution.’ The problems have meant that though most of the units in the seven towers have been sold, and the company’s escrow accounts are up to date, the project is no longer financially viable. MiNC claims that it would make a ‘significant and material loss if it were to build this project’ and it ‘can no longer afford to subsidise this loss’, according to the letter sent to investors. As an example, MiNC is asking buyers to pay an additional Dhs326,000 on units originally sold to them for Dhs370,000, a mark-up of 88% on the original price.

The developer also asks that investors pay the increase up front, with the remaining instalments as per the original terms.
The charge will then go to pay for construction costs. In return for this the company is trying to mitigate buyer displeasure by guaranteeing 8% rental returns on the increased purchase price. MiNC is also playing on the fact that, at Dhs1,000 per square foot, the units are still below market rate. ‘The market is short of new buyers at the moment and as they cannot sell at a higher price, they are in effect re-selling the same apartments back to the original owners at an increased price!’ an investor in the project told AME Info.

‘When we spoke with their London office, and contacted their Dubai office, the only options were – give us the money we have asked for or lose your apartment and 30%.
MiNC are saying that per the new law they will be able to retain 30% of the purchase price, even though we are not in default of payment.
Responding to this comment MiNC said: ‘We do not intend to confiscate all or part of clients’ deposits, and have not in any way threatened our clients in this regard.’

Permanent suspension of workThe letter continues: ‘The current economic climate and the impact on the property sector are unique… Events outside our control have forced us to make difficult decisions. We believe that our proposed course of action will help us meet this target [of delivery in June 2010]. Failing this, we fear that the project will be suspended, possibly permanently.’ The response from investors contacted has been understandably negative so far, with many refusing the terms: ‘If I wanted to buy an apartment at Dhs1000 per square foot back in November 2006, I could have put a little more in and bought in the Marina. As an investor in this company, I feel like I have been robbed of my savings and profit.

I have looked at the market and apartments in Jumeirah Village are selling for under Dhs1000 in the current market.’ If the response by even a large minority of investors is negative then MiNC will not have the funds necessary to begin construction and those who have advanced the extra money will have their funds returned and the company will wait for bank funding to resume. ‘We initiated a meeting with the Land Department to get them to intercede on our behalf with the banks,’ said Everest, ‘and they put pressure on them but we’ve had no joy. Our next move if the buyers don’t accept the deal is to return the money, sit it out and wait for financing. But it is our intention to build every single one of the units.’

UPDATE: Subsequent to the publication of this article MiNC has issued a statement to AME Info stating: ‘We have taken steps to reduce the premium requested from clients to a maximum of 30% or Dhs200,000 (whatever is the lower), as a handful of purchasers that bought at pre-launch prices (less than Dhs600 per square foot) have rightly pointed out that the premium requested of them was excessive.’

Posted in Dubai | Comments Off

Dubai developers are in denial

Posted by 7starsdubai on November 22, 2008

Dubai developers are in denial

Some of Dubai companies are in “denial” about the viability of projects in light of the global financial crisis, according to the CEO of Depa
We are at the denial stage where lots of developers know for a fact that their projects should be cancelled and they’re either not announcing it or they’re saying it’s going to be delayed,” said Mohannad Sweid, speaking on future Dubai growth at the Nasdaq OMX Investor Conference.

“We cannot deny the effect [the crisis] has been having, we are a part of this world and I believe it’s just not right to say we haven’t seen any impact,” he added.In its capacity as an interior contractor in the Gulf region, Sweid said Depa had seen a lot of project announcements that had not necessarily been fully researched and he expected these to stop as the crisis takes hold.”

What we have had in the GCC in the last three years is the difference between reality and non-reality.

Our market research showed there will be 280 new hotels built over four years within the GCC. That was advertised all the time… If we look at the reality – how many hotels have been delivered – it’s hardly more than five or six hotels a year,” he said.

In terms of risk to his own firm, Sweid was confident that infrastructure projects would still go ahead.”In this region, a lot of infrastructure is not developed yet and these elements of infrastructure have to be developed – it’s not a choice,” he said, citing Dubai’s new metro system as an example.He added that DepaDepa was still on track for growth for next year, but the “fears” were for 2010 and 2011.
© 7Days 2008

Posted in Dubai | Comments Off

%d bloggers like this: