Vue De Lac to begin this month

zoom

A rendering of the Vue De Lac tower to be built in plot K3.

Whether Vue De Lac's investors will be appeased by news that construction is to begin will depend on the individual in question. It would not be the first time they have heard such news, and they have been waiting a long time to see construction progress on site.

"I've heard the same promises over the last two years," one Vue De Lac investor, who has sunk $63,000 (AED230,000) into the project, told Construction Week. "Whether this project goes ahead this month or not, I'd rather have my money back. At least I can invest my cash elsewhere."

Chain reaction

Cash is indeed king in the current climate. The financial crisis has hit all links in the chain of construction hard, to the extent that, in some cases, the chain has broken.

Many investors, who have seen property prices tumble by up to 40% in some places, have been unable to make required payments to developers due to the bank's unwillingness to lend.

In turn, cash-strapped developers have been unable to pay contractors, and projects have stalled or, in cases such as Vue De Lac, barely broken ground.

Balakrishnan said communication is vital to maintain the chain. "If a customer comes and explains his problems, and the unavailability of funds is beyond his control, a refund is sometimes given," he said.

But, he added, "refunds and cancellations are not being encouraged" because, if 10% of investors in a tower cancel, Balakrishnan said, "that tower will not get built."

Investors in Vue De Lac have paid around 20% of their total to date. Balakrishnan said no instalments have been collected for months, and that Al Attar had enough cash to cover "initial" construction costs, and that once the next payment had been collected there should be enough cash to build "much higher."

But Balakrishnan also added that Al Attar will not know the number of defaulters until the next instalment is requested from its investors.

Under the law 13 amendment issued this year by the Dubai government, if a purchaser defaults before main construction has begun, the developer is entitled to keep 30% of money paid by the purchaser, but only if construction has not commenced for reasons beyond the developer's control.

Whether Al Attar could lawfully claim that the Vue De Lac project delay has been beyond its control, or not, is an interesting, and potentially costly question.

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READERS' COMMENTS

Al Attar - Toronto
Posted by salim, dubai, UAE on Sunday 6 September 2009 at 13:36 UAE time


I endorse the comment made by mohammed ashraf.I have invested in Toronto Project in 2004 which is next to Global Point.Handing over date was october 2007.since then once in 4 to 5 months an Project update appears stating"Approval received from Nakheel,Enabling works contract handed over"this statement being repeated since last 15-18months with only dates changing as update.I have seen around this Project no. of Projects coming up.it seems they don't have a will to Develop this Project.I request all the Investers in this Projects to comment & come forward to voice our concern.
Thank you.

does anyone know
Posted by duckman, dubai, UAE on Saturday 5 September 2009 at 12:59 UAE time

a single developer in the UAE that has been free from this sort of circumstances, i.e. project delivered on time at the cost promised, or else paid back the investors money in full.
Not surprising that Dubai reputation with foreign investors is what it is now.
Solution is straightforward and easy to implement,as it had been suggested here several times on AB. Why is no one listening, or acting upon it.

Al Atar - Global Point - another misadcenture
Posted by Mohammed Obaid, Dubai, UAE on Friday 4 September 2009 at 18:17 UAE time


This is not the first project that Al Attar have shown bad faith in. I invested in Global Point in 2004 - completion was due in October 2007. No work ever commenced despite numerous promises. In January we were promised full refunds in 6 months. The latest is maybe in 12 months time - and in installments. They have consistently gone back on their word and should be held to account. Please ask Bipin to comment on this!

Global Point by Al=Atar
Posted by Ashraf, Manchester, United Kingdom on Wednesday 2 September 2009 at 12:25 UAE time


Please could you ask Bipin when they will refund our money we paid for Global Point in 2004. It is 5 years and they have not even started the project. We borrowed from bank to pay for the project and are still paying the loan. I will appreciate your help
Thank you

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