Wednesday, March 28, 2007

Jumeira Beach Residence investors get upgrades for their home

Investors frustrated by delays in the handover of Jumeirah Beach Residence are being “substantially compensated” by upgrades to the finished product, the Chief Executive of Dubai Properties said.

Mohamed Binbrek said although buyers are not being financially reimbursed for losses caused by the hold-ups, they are receiving residential units which are “far superior” to what they originally paid for.

Asked about delays to the 7.9 million square metres project, Binbrek said: “We sympathise with the predicament of our investors, but it’s not a situation where the master developer could have avoided the delays or has in any way gained from them.

“We have done significant upgrades on the project, so in that sense people have already been substantially compensated.” The upgrades include better quality door handles, mosaics and marble finishes in bathrooms and improvements to the shopping boulevard, which will be home to 400 retailers.

Binbrek blamed the sixmonth delay on logistical problems, which were beyond the control of Dubai Properties. And he dismissed criticism buyers had been kept in the dark about progress on the mammoth project.

“There were times when we could have told them things that would have not been based on proper facts – that would have been nothing more than speculation, and it would not have been fair to raise their expectations.

“During the course of the project a lot of things changed in the market that were beyond our control – prices of materials, labour availability – they all affected the handover dates.

“As much as you plan, you always get mitigating factors coming into play. So, all of a sudden, steel was not available in the market, so we had people going around overseas trying to find supplies.

“You can do a theoretical analysis, but sometimes you are exposed to risks.” Binbrek revealed there has been a much higher demand for smaller residential units in Jumeirah Beach Residence than for larger three and four bedroom apartments.

Branded as the largest single-phase residential development in the world, the five million square foot cluster of 36 residential towers, four hotels and four beach clubs was orig inally scheduled for handover in September 2006.

It is anticipated that Jumeirah Beach Residence will be home to 30,000 people.

[Source : Emirates Today ]

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