Sunday, March 30, 2008

Investors express wrath over Damac's back-out

Investors of Damac's Palm Springs project on Palm Jebel Ali are enraged about the project being 'bought off' by Damac due to project alternation.

Damac is now planning to 'buy back' its Palm Springs plot on Palm Jebel Ali, five years after its launch. Damac is not in a position to proceed with the construction of the development, without incurring a significant loss as the plans of master-developer seems to have changed.

The Chairman of Damac Holding, Hussain Sajwani, mentioned in his statement said that Damac has been advised that the Palm Jebel Ali master development has been redesigned and the Palm Springs plot will not be delivered.

Due to redevelopment of plots, the Palm Springs development could not be positioned on the re-allocated plot and hence the Palm Springs project has to be cancelled, he added.

He added that, Damac will provide its customers an opportunity to release the investment made in Palm Springs and transfer the money to any of other projects of Damac at a discounted rate of 15 percent below current market value. As an alternative, Damac is ready to refund money paid by customers, with interest.

However, investors claim that Damac is offering only six percent per annum on the sum invested. The investors are considering taking the complaint directly to Ruler's Court, as they are already furious about the repeated project delays, contractual issues and poor customer service by Damac.

The Chief Executive Officer of Dubai's RERA (Real Estate Regulatory Authority), Marwan Bin Galita, said "Any investor with a problem or misunderstanding with developer, please check our website or meet us personally and we will clarify it for you."

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