Sunday, September 27, 2009

Ajman's Crown Residencia project comes to halt

Investors in Crown Residencia project in Emirates City in Ajman will have to wait for a minimum of one year, before moving in, reports The Gulf News.

According to Abu Bakr Abuzeid, the Finance Manager of Al Batha Real Estate, the project developer, the project has been stalled as investors are yet to pay their installments.

Abuzeid agreed that people are delaying their payments, and mentioned that the company will have to swap its clients to Dubai, and has already offered projects in Dubai.

According to ARRA (Ajman Real Estate Regulatory Agency), Crown Residencia does not have an escrow account and one of the partners of Al Batha Real Estate has been jailed for bounced cheques.

The investors met Abuzeid last week and they were told that their investments could be swapped to projects in Dubai, through a new partnership with Al Masah International Development Company.

As per this potential solution, investors' money will be put into an escrow account and registered with Dubai's RERA (Real Estate Regulatory Authority).

Abuzeid has emphasized that Crown Residencia has not been cancelled. In case investors don’t accept this offer, they will be offered another solution. The company just needs to pay the balance of land and some other fee, worth Dh.1.5mn, and requires Dh.1million to pay construction advance.

But, the investors who spoke to Al Masah International realized that as per the current plan, they would lose 70 percent of their investment, with only 30 percent being transferred.

A source at Al Masah International confirmed that clients from Al Batha will be able to shift investments to their projects in Dubai. The cheapest of Al Masah projects is worth about Dh.750 per square foot, so investors can pay more, as units in Ajman are usually cheaper.

Al Batha Real Estate is different from Al Batha Group in Sharjah.

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