Saturday, March 06, 2010

Investors concerned over Ivory Towers delay

Following the halt in construction of the long-delayed Ivory Tower, several property investors fear that they would lose money on their investments, reports The National.

Located in the International Media Production Zone (IMPZ), the Ivory Tower was completely sold off-plan in 2006. However, there has been no progress on the site, apart from the foundation works which began last summer at the site.

According to Khaled Mahmood, Consultant, Homes Real Estate, the project was stalled, as the investors had stopped paying.

The website of Sokook Investment Group, the developer of the project has also been closed and the message reads that the site is yet to be updated.

About 700 customers are said to have purchased units in the sprawling 20-storey Ivory Tower.

Mahmood said that he is to make a report to Sokook to check who is paying them and who isn't. People who have paid 30 percent or more of their money can wait until the construction begins, but people who have paid less than 30 percent are likely to be forfeited, he said, while adding that the construction of the tower is on hold in the first place, as only 10 to 15 percent of people have made payments.

Mahmood says that the feasibility report is being done to check the number of investors who are ready to continue with the project.

According to Mahmood, one of the options before the buyers, is to switch-over to other projects in Dubai that are completed or are nearing completion. However, this will happen only through agreements with other developers, as for Sukook, Ivory Tower is the only project in Dubai.

The original delay on the project was caused over a land dispute with TECOM investments, the master developer of IMPZ. The row was resolved only with the help of Dubai Land Department in 2008 summer.

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