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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 ‘Real Estate’

Dubai Marina Homeowners are planning legal action against developer

Posted by 7starsdubai on February 23, 2012


Dubai Homeowners of an upscale 45-storey residential tower in Dubai Marina are planning legal action against the developer, alleging a series of violations, including unfulfilled promises, mis-sale, misappropriation of funds and non-payment of bills to multiple service providers,.

Claire Grainger, Senior Partner from Prestige Advocates & Legal Consultants, who is representing the interim homeowners’ association of the building, said, “We intend to demonstrate in arbitration and court proceedings that either the developer never actually intended to deliver some of the promised facilities or cancelled some of them part way through the construction as published in their marketing material which was used to talk people into buying apartments”,  Gulf News Dubai reported.

continue reading original source Gulf News

Posted in Dubai Legal - Real Estate Lawsuits, Dubai Marina, Dubai Property Investors, Dubai Property legal, Sales Purchase agreement | Tagged: , , , , | Comments Off on Dubai Marina Homeowners are planning legal action against developer

Investors in one of Palm Jumeirah’s developments formed a group to advocate for their interests

Posted by 7starsdubai on March 22, 2011


DUBAI // Investors in one of Palm Jumeirah’s biggest developments say they have been left out in the cold by a Dh1 billion (US$272.3 million) legal dispute between Souq Residences, the company behind the project and Nakheel, which built the group of islands.

The investors in the Golden Mile who recently formed a group to advocate for their interests say they have yet to move in six years after the project’s launch, even though construction has been completed and they have paid in full for their properties.

“We’ve had immense difficulty,” said Suhail Rehman, one of the investors. “People have lost two years of rent on fully paid-up assets.”

“We’re being reminded of this by cases against some of the government and private developers. It’s not just a matter of finances but also of putting a legal system in place to handle these disputes.”

source The National continue reading…

Posted in Dispute, Dubai, Dubai Property legal, Dubai Real Estate Scandal, Nakheel | Tagged: , , , , | Comments Off on Investors in one of Palm Jumeirah’s developments formed a group to advocate for their interests

Dubai residents say their water and electricity bills as much as doubled in September

Posted by 7starsdubai on November 8, 2009


A group has even formed on the social networking site Facebook called “My Dewa bill increased in September 09 by a crazy amount for no reason!”

One member claimed the bill for his three-bedroom flat in Al Barsha was Dh8,000. As of yesterday, the group had 144 members. Other Dubai-based websites have jumped on the bandwagon and are running similar discussions about what is causing the bills to shoot up.

read the full report original source The National

Posted in Dubai | Tagged: , , | Comments Off on Dubai residents say their water and electricity bills as much as doubled in September

Dubai Property Market – Flippers, skippers, runners, survivors battle it out

Posted by 7starsdubai on July 19, 2009


source PropertyWeekly

‘Flipping’, ‘skipping’ and ‘running’ are relatively new terms in the argot of Dubai’s property market. Many would know about at least one person who has done one of the three ‘disrespectful’ things, and may even be aware of several more via the city’s thriving rumour mill.

The residents who remain also have a new nomenclature for themselves — the ‘survivors’.

New players experiment with speculation

Flipping was hitherto the activity of buying and selling property instantly, and solely for instant profit. Despite the impression that this dangerous game is a thing of yore and was once the exclusive prerogative of high risk takers, it is not, and has attracted new players.

Flipping was once restricted to incomplete properties, but they are now doing it with credit notes. Also, flippers are not necessarily risk takers; some are trying to recover investments gone awry, while others are desperate for much needed cash.

Offloading multiple units

AR is a classic flipper. In December 2007, he owned three apartments — on paper — at various buildings in Dubai Marina. By September 2008, he had sold two for a cumulative profit of Dh1.23 million, despite the fact that both were not ready for occupation.

“I am lucky that I disposed them of before it was time to start paying my mortgages and before the economic downturn,” he says. “If things get bad, I will move into the one I still own, so no money lost. But, many other people who acted impulsively have done badly. I know some really sad stories and consider myself blessed.”

However, despite his narrow escape from steep losses, AR cannot shed his innate instincts. When questioned, he admits that he has purchased a credit note for 60 per cent of its face value, and is looking for a buyer who will take it off him for a profit.

Skippers caved in

Skippers are other risk takers like AR, but who didn’t have the sense, instincts, or gumption to offload their properties when the market soured. When they could not find buyers and saw alarming drops in prices, they caved.

Faced with the prospect of bounced cheques, rising debts and the threat of unemployment, some of these foolhardy investors just upped and left, or skipped.

Skippers are not available for quotes, but TQ who left the country in the first week of February is believed to have invested in no less than six properties across the country. A feat made possible by two facts: he was the creative director of an advertising agency and had a substantial salary, and he dealt with an Islamic bank that allows customers to have multiple mortgages.

Coincidentally, the day he lost his job is also the day he realised that the next set of payments towards his property portfolio totalled Dh246,000, and also, that there were no prospects of serious buyers on the anvil, for any of them.

Forfeiting down payments

His simple solution was to forfeit the nominal down payments he had made on the said properties, and to head back to his native country to sit out the storm. In his case, he paid off his credit cards, cleared his lesser debts, and told his bank that he was giving up his claim on the many apartments he owned.

Trail of debts

Runners, on the other hand, don’t bother doing any of the latter or the formalities associated with relocating from the country. One minute they are in Dubai, revelling in their enviable status as the owners of several properties, and the next minute, they are simply missing from the country, with only the trail of debts proving they lived here. They could now be anywhere.

Finally, those who have heard the horror stories and heaved heavy sighs say they too need a moniker for not falling into any of the above categories.

Ordinary residents who continue to pay rent on their homes, have strongly resisted the urge to invest in property. Those who actually live in the properties they purchased say they are just holding tight.

BJ owns a modest studio flat at The Greens and his brother MJ rents a one-bedroom apartment at Dubai Marina, and by their own admission, they worry about the appalling state of the world, just as much as they are alarmed about their own job security… or the possible lack of it.

According to MJ, their mission is to put away and save as much money as they can every month just so that they are not taken unawares by any unpleasant surprises — be it falling prices, increased rents, unexpected payments or unplanned debts.

“All those people we hear about have titles that classify them into categories. We believe that the rest of us who live in Dubai and eke out an everyday existence without running, skipping or flipping need one too. Just call us the ‘survivors’,” say the brothers.

And they are not being sardonic.

Flippers now deal in credit notes

• Despite the impression that flipping is a thing of yore and was once the exclusive prerogative of high risk takers, it has attracted new players
• Flipping was once restricted to incomplete properties, but they are now doing it with credit notes
• Also, flippers are not necessarily risk takers; some are trying to recover investments gone awry, while others are desperate for much needed cash
• Skippers are other risk takers, but who didn’t have the sense, instincts, or gumption to offload their properties when the market soured
• Runners simply go missing from the country, leaving behind a huge trail of debts

Posted in Dubai | Tagged: , , , , , , | Comments Off on Dubai Property Market – Flippers, skippers, runners, survivors battle it out

What next is the question now being asked by investors as one of the Middle East’s largest property developers Nakheel

Posted by 7starsdubai on May 13, 2009


source The National UAE, May 12, 2009

ABU DHABI // Nakheel made headlines around the world with its Palm island projects and the planned Hong Kong-sized Waterfront development, while its advertising billboards dotted around Dubai asked “What next?”

What next is the question now being asked by investors as one of the Middle East’s largest property developers contends with a US$3.5 billion (Dh12.85bn) Islamic bond due in December, which helped fund projects that included the world’s biggest man-made islands.

How the sukuk is handled will serve as a key test for the credit ratings of state-controlled companies in the emirate and could affect their ability to raise money on international markets. It is also widely seen as an indicator of how Dubai will cope with its overall debt burden, estimated at $70bn.

“The clock is ticking, so something has to be done,” says Abdul Hussain, the chief executive of Mashreq Capital.

Nakheel issued the three-year sukuk in 2006, when the Dubai property market was still in a fever and the likelihood of a downturn seemed impossibly remote. The bond came with a profit rate – the Sharia-compliant equivalent of an interest rate – of 6.345 per cent per year. To ease its cash flow, however, Nakheel arranged to pay just half of that, or 3.1725 per cent, during the life of the bond. It would pay the rest at maturity, which seemed a sensible strategy given the rapid rise in property prices in Dubai and the healthy profits the company was booking.

As a further teaser, Nakheel added an option for sukuk holders to buy shares of Nakheel at a 5 per cent discount should it stage an initial public offering and become a listed company. It also backed up the sukuk with significant collateral: land and other assets worth more than twice the value of the sukuk.

At first, international investors eagerly snapped up the offering. Initially, just 30 per cent of the shares were sold to investors in the region, according to a source involved in the deal. The rest went to overseas investors.

Almost three years later, the economic climate could hardly be more different and Nakheel, like many other companies in Dubai, is busy working out how to settle its debts amicably while continuing to build and invest. The company recently undertook a round of cost-cutting and is said to be asking its contractors to take discounts on payments due to them. A source at a building contractor in Dubai that has worked on a number of Nakheel projects said all construction companies associated with the company’s Waterfont development had been asked to take discounts ranging between 30 and 40 per cent.

Yet among the many ways in which Nakheel must cope with the changing economic tides, its $3.5bn sukuk probably ranks as the most significant – and most urgent. The uncertainty surrounding the sukuk has caused its price to rise and tumble rapidly. It was recently trading at a heavy discount, with a yield of about 58 per cent. Low prices and high yields mean investors demand to be compensated with a high return for taking an increased risk that their money may not be paid back in full. “The market obviously believes there is a significant risk of some form of restructuring,” Mr Hussain says. “Otherwise you wouldn’t be able to earn a 50 per cent yield. We are now waiting to hear what sorts of strategies are going to be put in place.”

Nakheel has a range of options for the sukuk, analysts say. It may simply pay off investors in full using an injection of funds from the Dubai Government, received as part of the first instalment in a planned $20bn bond programme. Nakheel said recently it was receiving assistance under the programme.

It could also sell part of itself to a private equity firm in order to raise some of the cash. Analysts have suggested that money raised from a possible sale of part of DP World to a private equity firm could be redirected through Dubai World – which owns both DP World and Nakheel – to help pay off the sukuk. Abraaj Capital, a buyout firm managing $6bn in assets, has approached Dubai World about acquiring a “significant minority stake” in DP World, a source with knowledge of the discussions said earlier this week.

Nakheel could also go to banks for loans to refinance part of the sukuk, or it could try to buy back a chunk of the Islamic bond by extending a tender offer to existing owners.

Another option is for Nakheel to partially restructure the sukuk, giving most of investors’ money back and converting the rest of the debt into a new longer-term loan. This route could also involve one or both of Nakheel’s other sukuk, which are smaller and due in 2010 and 2011.

Rumours of such a restructuring began to surface about a month ago, when Nakheel hired a market intelligence firm to identify the owners of its sukuk shares. Many investors saw this as an indication that the company was trying to find out what portion of the sukuk was owned by investors who would be sympathetic to an attempt to restructure.

The possibility of a restructuring led Standard & Poor’s, a major ratings agency, to put numerous Dubai companies on watch for a credit downgrade.

A Nakheel spokeswoman said in a statement that “a number of options” were currently on the table and declined to elaborate. Bankers said that a restructuring that left investors with a loss was probably Nakheel’s least desirable option, aside from a fully fledged default. If Nakheel were to allow many of its investors to take losses, they said, the cost of raising money in the future – for Nakheel and other government-linked companies in the UAE and the broader GCC – might go up.

“Nakheel has a large volume of public debt, much of it held by international investors, so a lot is at stake regarding international credibility of Dubai corporates that will likely at some point seek to borrow again in the global capital markets,” says Khalid Howladar, a vice president and senior credit officer for structured and Islamic finance at Moody’s, another ratings agency.

What seems most likely, investors and observers say, is a combination of some of these options. Nakheel may buy back some of the sukuk shares using subsidy money, for example, offering an above-market price for them. If some investors are unwilling to sell, the company could then try to refinance a portion of the debt with bank loans and sell some of its equity to a private equity firm.

Bobby Sarkar, an analyst at Al Mal Capital in Dubai, believes Nakheel is also considering selling some of its assets, such as its stake in the Atlantis Hotel on the Palm Jumeirah and properties in Discovery Gardens, both in Dubai. “They are looking at a combination of asset sales, some inflow from the Government, some restructuring and a partial sale to Abraaj.”

Whatever options it chooses, a source familiar with the sukuk says, a full default or even a serious restructuring is highly unlikely, given the value of the collateral that Nakheel has provided and the negative message such a move would send to international markets.

Moreover, Dubai’s government-linked companies have so far succeeded in paying off or refinancing large loans and bonds as they come due. In February, for example, Borse Dubai – the company that owns Nasdaq Dubai and the Dubai Financial Market – was able to refinance a $3.4bn bank loan, albeit with major help from local sources of funding.

Last month, the Dubai Electricity and Water Authority refinanced a $2.2bn Islamic loan with 18 international, regional and local banks.

Nasser al Shaikh, the director general of the Dubai Department of Finance, said a week later there was a “shift in the overall mood” in the international credit markets when it came to Dubai’s debt.

Posted in Dubai | Tagged: , , , | Comments Off on What next is the question now being asked by investors as one of the Middle East’s largest property developers Nakheel

 
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