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    • 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 […]
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Posts Tagged ‘Damac Properties’

Damac Dubai must pay 1,8 Million after the developer failed to finish the appartment in time

Posted by 7starsdubai on June 27, 2011


Dubai – 26 June 2011

Damac Properties Dubai must pay the Irish couple Noel and Lorna Gaffney compensation for failing to deliver their apartment in Dubai’s Park Towers on time the DIFC Court ruled.

Dubai Property Dispute compensation DIFC Court ruling 2011

Gulf News reported, that the Court also criticised the company for using highly technical arguments and tactics as well as the casual manner in which it had approached the court proceedings — as a result, it ruled that Damac should pay the Gaffney’s Dh200,000 legal fees.

As reported in The National the court awarded the Gaffneys Dh1,781,009 (US$484,872), representing a refund of payments they made towards apartment 602 in Tower B of the development.

The Gaffneys bought their Park Towers apartment off-plan in 2004, according to their original claim. The project consists of two 49-storey cone-like glass buildings and is situated within the grounds of the DIFC, close to the financial district’s central Gate Building.

continue reading….. The National   ….. Gulf News

 

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Posted in Damac Dubai, Property Investor Dubai, Property Lawsuit Dubai | Tagged: , , | Comments Off on Damac Dubai must pay 1,8 Million after the developer failed to finish the appartment in time

Damac breaking Dreams

Posted by 7starsdubai on August 17, 2009



The comments shown below are in response to an article published in Construction Week online and show an extrac of what Dubai Real Esate investors think of Damac and the CEO Peter Riddoch:

comment: straks  (Jul 8, 2009)  United Kingdom

no longer to be trusted
Damac have not paid out the correct compensation, FAR FROM IT and regardless of what Damac ‘claim the contract says. Also building still not fully complete and verging on dangerous with lifts not working and fire escapes not safe. Incidently another thing you might want to ask Mr Riddoch – it turns out that the apartments were NEVER OVERSIZED IN THE FIRST PLACE so where did the excess area charges come from – TOTAL FRAUD and a diversion so owners were to o busy fighting that cause and not noticing the compensation issue and also too tired to fight that as well. I hope, for Dubai’s sake Damac are told to get their ‘house in order’ by the ruler and we can get the quality of apartment we were promised and expected in Dubai

comment: an annoyed investor (Jul 7, 2009)Dubai United Arab Emirates

Peter riddock damac
Damac are technically insolvent, if they operated in Europe thye would have filed for bankruptcy prior to economic crash

Comment: SANDRAJJACOBS (Jul 2, 2009)STAFFORD UK United Kingdom

SIZE VARIATION IN LAKE VIEW jlt dUBAI
Whilst having being notified by Damac of a refund for the above, can anyone please advise why they are not paying it 4 months on, and still no sign of the refund

Comment: navas (May 23, 2009)uk United Kingdom

Fair coverage?
The reporter should do a follow-up interview with a representative of the disgruntled investors to get fair coverage on both sides. Site photos should also show proof of who is really telling the truth. How about it, Mr. Conrad Egbert???

Comment: Neil Roberts (May 22, 2009)Abu Dhbai United Arab Emirates

DAMAC management and interpol
I have heard that interpol have been contacted about alleged fraudulant sales of DAMAC properties does anyone know if this is true?

Comment: Stay Away from Damac (May 21, 2009) Dubai United Arab Emirates

Stay Away from Damac
Peter Riddoch needs to open his dictionary again and read the definition of ‘ETHICS’. This company is totally unethical and I am an unfortunate owner of one of the units in the Lake View tower. My advice to investors: Stay away from Damac.

Comment: Nas001 (May 20, 2009) United Kingdom

Lake View Lies!
I have read all the comments by Peter Riddoch who is very economical with the truth. The reality is that DAMAC bullied me into signing my legal rights away by refusing to hand my keys even when I called the police, they have refused to pay me adequate compensation as per my contract, their building is far from complete despite their blatant lies that Lake View was handed over at end of 2008. Perhaps Mr Riddoch can explain why his company sent letters to ALL investors in MARCH 2009 inviting us to take possession then if he claims Lake View was ready in 2008??? The staff have zero customer service skills and are an extention of theie CEO. What a pathetic disgraceful company. I will never do business with this company.

Comment: Joe (May 18, 2009)Kildare Ireland

Lake View
I think damac are a joke, they try to extract as much money out of people as possible for a bad customer service, bad work, late projects, bullyboy tactics, projects that dont represent what was sold to people. They really bring Dubai’s reputation. We wouldnt touch damac again and advise everyone else to run a mile from them

Comment: dont invest in damac (May 18, 2009) motherwell, United Kingdom

lake view
Amy1 is right We have a forum on http://www.skyscrapercity.com if anyone wants to see the 400+ happy customers!The full building is a joke it looks like something out of a council development ready for demolition. Damac Breaking Dreams………..maybe an idea for a new slogan……

read more also  Palm Springs Damac Investors Group

Posted in Dubai | Tagged: , , , | Comments Off on Damac breaking Dreams

Damac back in the Headlines – Stressed Investors from UK – A TV Report

Posted by 7starsdubai on July 28, 2009


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Damac back in the headlines – Property developer`s victims surface Cairo

Posted by 7starsdubai on April 13, 2009


source zawya

13 April 2009
JEDDAH: The Damac Properties, a Dubai-based developer that has not been doing well in the face of the current global financial crisis, is caught in a new row involving its staggering real estate projects in Egypt after allegedly victimizing a number of investors in the Kingdom, Al-Madinah newspaper reported yesterday.

According to the daily, more than 170 Saudis and expatriates were recently discovered to have bought housing units in the company’s defaulting Hydepark project in the Egyptian capital Cairo.

The newspaper said the victims of the Cairo project were in addition to those who invested money in the company’s Al-Jawhara Tower project on the Jeddah Corniche.

Units in this prestigious project were sold to Saudi homebuyers, who were impressed by the company’s “unparalleled standards” of architectural detailing and interior design.

The newspaper said all attempts to obtain a comment from the company on the claims of the investors have so far failed. Hussain Sajwani, the company’s CEO, and its media relations manager had not been returning calls.

Al-Madinah quoted an official source at Damac, who did not want to be named, as saying that the leadership of the company had been evading questions from journalists because it did not want its problems to be publicized.

“This would help the company exert more pressure on its foreign and local investors,” the source added.

According to the newspaper, the questions the company was evading to answer included: When would the actual implementation of the projects start? When will the funds be reimbursed if the projects were not executed? How much would be the compensation for the customers?

Al-Madinah said the company was putting pressure on investors to pay their remaining installments in the projects on time saying unless they pay up it would take action on them for breach of contract.

The contract gives the company the right to abrogate the agreements with its buyers without any prior notice if they fail to pay rest of the installments.

Posted in Dubai | Tagged: , , | Comments Off on Damac back in the headlines – Property developer`s victims surface Cairo

The British government is being asked to help U.K. investors in Dubai who fear losing millions of dollars in the sheikdom’s collapsing property market.

Posted by 7starsdubai on March 27, 2009


source WallstreetJournal by Stefania Bianchi

A group of investors based in the U.K. have sent a petition to Prime Minister Gordon Brown asking him to intervene in what they claim are “harmful real-estate practices” in the United Arab Emirates.

“We as investors have recently discovered the blatant embezzlement of our money by unscrupulous developers,” the petition, seen by Zawya Dow Jones, says. The petition was referred by Downing Street to the Foreign Office.

“We have been contacted by individual investors,” a spokesperson for the U.K. Foreign & Commonwealth Office told Zawya Dow Jones. “The FCO takes this matter seriously.

A near 50% fall in real estate prices in some parts of Dubai has spurred a rash of increasingly ugly real estate disputes between developers and investors. The industry accounts for 30% of the emirate’s economy.

The Dubai Land Department estimates that British investors own property worth 4.7 billion U.A.E. dirhams ($1.3 billion) in the emirate. British buyers now account for 12% of international property investors in the emirate, behind Saudis and Indian buyers, according to regional investment bank EFG Hermes.

The involvement of the British government on behalf of disgruntled property buyers will further damage the reputation of Dubai as it struggles to clean up its financial image and attract foreign investment that’s vital for its economy.

The Foreign Office spokesperson said that while the British government would advise investors on how to resolve disputes “ultimately this is a legal matter between the interested parties.”

Dubai’s Real Estate Regulatory Authority, the government watchdog, didn’t respond to written questions from Zawya Dow Jones, but Thursday said it plans to set up new “real-estate communities” to increase transparency.

INTERVENTION<br />

British national Nick Jasani is one of a group of investors who is lobbying parliamentary representatives to put pressure on Downing Street to intervene in the rising number of disputes on their behalf.

Jasani, who bought a commercial unit from a developer in Dubai’s Business Bay district for AED2 million in early 2007, is worried because construction at the project hasn’t started, even though he’s already paid AED640,000 or 30% of the unit’s value.

He said the Dubai-based developer is still demanding payment installments even though they’re not working on the project.

A letter seen by Zawya Dow Jones and sent by a number of individual investors to Members of Parliament states that “even though projects have no hope of going ahead due to the current financial climate, the money (investors) they have put down may not be refunded.”

As the bottom falls out of Dubai’s once-soaring property market, developers are scrambling to respond. Many are being forced to cancel or delay projects amid falling sales and property prices.

Last month, a report by investment bank Morgan Stanley (MS) said the United Arab Emirates is delaying or canceling real-estate projects worth more than $260 billion. An earlier HSBC PLC (HBC) report said Dubai is delaying or canceling almost 60 projects worth $75 billion.

Amid growing uncertainty about whether they’ll see their money again, investors are organizing themselves to take on the emirate’s sometimes unscrupulous developers and convoluted real-estate regulations.

This week a group of more than 100 investors delivered a petition signed by more than 350 investors to Dubai developer Nakheel’s office urging the firm to reschedule payment plans for villas on Palm Jebel Ali because of delays.

This followed a petition to Emaar Properties (EMAAR.AI), the Middle East’s largest developer, requesting the cancellation of three of its projects.

Nakheel didn’t respond to questions from Zawya Dow Jones.

“There are certainly a number of investors who seem to have claims with merit. Others simply have been caught out by a falling market and insufficient contractual protection,” said Matthew Hooton, head of real estate in the Middle East for law firm Ashurst.

Posted in Dubai | Tagged: , , , , , | 1 Comment »

Dubai – The very special Hand Over Blues Made by DAMAC – Developer asks for extra 5 %

Posted by 7starsdubai on March 10, 2009


Dubai March 2009 Xpress4Me

Owners of the Lake View building at the Jumeirah Lake Towers by Damac Properties are up in arms after the developer asked them to pay an extra five per cent of their property value weeks before the final handover.

Owners of units in the Lake View building at the Jumeirah Lake Towers received a notice from Damac on February 9 stating that the floor space of their unit has been revised and that they have to pay between Dh30,000 and Dh55,000 extra on their final invoice, otherwise they will be charged a penalty or risk losing their property. The handover is this Sunday.

Ali Mohammad, owner of a two-bedroom unit, said Damac has turned down his request to have his apartment measured by a surveyor.

“They said I would have to pay the additional fees by the handover date. Only then would they reimburse me if any discrepancies were found with the measured size of the apartment,” said Mohammad.

Bank executive Salman Jawaid, who bought an apartment in September, said the fee was “unjustified” as the mortgage deal stipulated that “the first payment was to be made on the day of the handover”.

Roger Fleming, who bought a one-bedroom apartment, said he has been asked to pay Dh35,000 for an extra 54 sq ft.

Land fee

Fleming said he was puzzled by the two per cent shown in his invoice as “land fee”. “I contacted Rera (Real Estate Regulatory Authority) and found out the land fee is one per cent and that it should be paid directly to Rera,” he said.

Niall McLoughlin, Damac Senior Vice-President for Corporate Communications, has urged owners to be patient. He said the interpretation of Article Number 12 of Law 13 has yet to be clarified. “We expect Rera to shortly issue by-laws in relation to area variations. Obviously, we will adhere to any regulations issued by Rera.”

Posted in Dubai | Tagged: , , | 1 Comment »

Damac Palm Spring Scandal – Investors are still uniformed about Details

Posted by 7starsdubai on May 14, 2008


May, 12. 2008

Damac recently wrote to investors to confirm the construction of Palm Springs on the new plot allocated by Nakheel. Without doubt, RERA has rightfully flexed its muscles to ensure that the Palm Springs development has become re-instated. The Palm Springs Group sees the re-instatement as an opportunity for all involved to promote a healthy, transparent, and collaborative environment in the Dubai real estate industry.

“We are delighted that RERA, Nakheel, and Damac are now unanimous in their support of the development and we look forward to working collaboratively with Damac in the successful execution of the project.”

Furthermore, the letter to Damac has asked for details of the re-instated project, including apartment plans and construction timelines, as well as monthly updates through to project completion.

It is heartening to hear the CEO of RERA, Marwan bin Ghalita recently state that “we cannot let people promise and not deliver in Dubai” – this sends out the right signal to investors and developers alike and bodes well for the continued the growth of Dubai real estate industry.

Damac have finally sent written confirmation of the re-instatement of Palm Springs to investors. Whilst the Palm Springs Group is pleased with this development, the communication merely rubber stamps what has already been issued to the press.

The main concern now for investors is that Damac confirm in writing details of the project, such as the plan specification, build quality, start and handover dates, and whether it is in keeping with the original contract.

April 14, 2008
One investor commented, “we will be writing to Nakheel and Damac requesting them to disclose the new plot handover date and details of any planned changes as a matter of urgency” She went on to say that the Group intend to monitor developments to ensure that any changes are compliant with the contract provisions. It is possible that investors may request a meeting with Damac to get clarification of the details and to iron out any concerns.

Barring any nasty surprises contained in the ‘detail’ of the re-location of Palm Springs, it would seem that both investors and Damac will soon be able put their differences behind them and look forward to the dream that was, and hopefully is, Palm Springs. Let’s hope Nakheels’s and RERA’s role in helping to resolve the crisis serves to strengthen the reputation of Dubai real estate.

Posted in Dubai, Vereinigte Arabische Emirate | Tagged: , , , , | Comments Off on Damac Palm Spring Scandal – Investors are still uniformed about Details

Wall Street Journal – Scandals in Dubai Cast a Cloud

Posted by 7starsdubai on May 1, 2008


original published Wall Street Journal http://online.wsj.com/article/SB120941603017750659.html
and
http://www.zawya.com/story.cfm/sidDN20080428017680/lok233629080428?weeklynewsletter&zawyaemailmarketing

Some Problem Deals In Real Estate May Dent Trust
By MARGARET COKERApril 29, 2008; Page C2

DUBAI, United Arab Emirates — This city-state’s real-estate market is booming. Massive building projects scrape the sky. Sales and rental prices appear buoyant as investments flow in from other oil-rich Persian Gulf states, the former Soviet Union, India and Iran.

But a series of legal tussles and property-related scandals could dent foreign-investor confidence and tarnish the business-friendly reputation the government has tried so hard to burnish.
Earlier this month, the chief executive of one of Dubai’s largest publicly traded developers was jailed. And two disputes involving European and U.S. investors have raised concerns about Dubai’s regulatory and legal safeguards.
Foreigner-Friendly

The U.A.E., a collection of seven, semiautonomous emirates, was the first of the Arab Gulf states to allow foreign-property ownership. The country, a major oil producer, remains at the center of the Gulf region’s construction surge. More than a third of the estimated $1.2 trillion in projects under way in the region are in the oil-rich U.A.E., according to a report by the London-based Middle East Economic Digest, which tracks building projects.

While Dubai lacks the big oil reserves of its neighbor Abu Dhabi, it has diversified away from petroleum, building a reputation as a hub for tourism, business and transportation. Crucial to that strategy are its development projects.
Dubai has regaled tourists and investors alike with megaprojects such as the construction of Burj Dubai, the world’s tallest building, and the planned Palm developments, three separate man-made island clusters in the shape of palm trees.

“The perception of Dubai is based on the Burj, the Palm trilogy and sunshine 365 days a year. So far, you could call it a successful marketing campaign,” said Martin Kohlhase, a senior analyst in Dubai for Moody’s Investors Service, the credit-rating company. “There is so much at stake.”
Marwan bin Ghalita, chief executive of Dubai’s Real Estate Regulatory Agency, said he has worked hard over the past few months to improve rule making and enforcement among Dubai’s 742 licensed developers. “We are doing a very good job, but there are still lots of things to do to achieve awareness about the rules and procedures here,” said Mr. bin Ghalita.

Deyaar Development PJSC said earlier this month that its former chief executive, Zack Shahin, had left the company and was being held by Dubai police. The company, listed on the local stock exchange, disclosed the moves after the Zawya Dow Jones wire service reported the arrest.
Mr. Shahin, a U.S. citizen, is being held as part of an investigation into alleged financial wrongdoing at the company. In a jail-house interview, he told the wire service he was innocent.

Mystery has shrouded the case, raising concerns about the extent of its repercussions on the company, one of Dubai’s biggest developers. A Deyaar spokeswoman declined to comment.
Another project — on the Palm Jebel Ali archipelago, one of the three clusters — also recently became a battleground between a Dubai developer and disgruntled investors.
In 2003, Damac Properties, one of Dubai’s largest private developers, sold apartments in a 25-story building, known as Palm Springs. The company targeted British investors, eager to snap up retirement or rental properties.

Last month, Damac sent letters to those investors, saying the project had been canceled, giving few details. When investors pressed, they were told Palm Jebel Ali’s government-controlled master developer, Nakheel PJSC, hadn’t given Damac suitable land on which to build.
‘Out of the Blue’

Damac promised to return investors’ money, plus 6% interest, or give discounts on another Damac property. The Palm Springs apartments were sold for about $220 a square foot, according to investors. Current market prices in the same area are as much as $890 a square foot.
“It came out of the blue,” said Colin Murray, who lives southwest of London and bought two Palm Springs apartments.

Mr. Murray helped band together 80 investors in the United Kingdom. They filed a formal complaint with Dubai’s Real Estate Regulatory Agency. Nakheel denied it had caused the project cancellation, and regulatory officials launched talks between Nakheel and Damac. Damac then told investors that the project was back on.

The agency’s Mr. bin Ghalita said Dubai law gives Damac six months to start construction. He said he “would be keeping my eye” on the situation.

The controversy over Palm Springs was just the most prominent in a series of property-investor complaints. The local English-language press has reported stories of middle-class families being bilked by unlicensed brokers or unscrupulous developers who have taken large deposits and failed to deliver. And then there are delays in finishing construction. Damac has completed only 18% of its $30 billion real-estate portfolio.
Financiers in Tussle

It isn’t only small investors getting ensnared. U.S. private-equity firm Capital Partners, a real-estate-development arm of McKinley Reserve, of Wisconsin, is in a $1 billion legal dispute with Tecom Investments, a subsidiary of Dubai Holding, which is owned by Dubai’s ruler, Sheik Mohammed bin Rashid Al Maktoum.

In 2005, Capital Partners and Tecom signed a contract allowing the Americans to develop a 15-hectare site called Riverwalk. Months later, however, the deal had turned sour. Capital Partners accused Tecom of selling it land that it didn’t own, specifically, almost a hectare that was a designated archaeological site.

With $10 million already sunk into the project, Capital Partners refused to make a scheduled second payment to Tecom until the ownership issues had been worked out. Tecom said that missed payment was grounds to terminate the contract. The case is before the Dubai International Arbitration Center, an independent tribunal.

Posted in Dubai, Vereinigte Arabische Emirate | Tagged: , , , , , , | Comments Off on Wall Street Journal – Scandals in Dubai Cast a Cloud

 
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