'Money back is not an option' says ACI boss

MONEY TALK: Robin Lohmann, MD of ACI Real Estate, has said investors cannot have their money back. (ITP Images)

The boss of German developer ACI Real Estate has told investors that getting their cash back is "not an option".
 
In an interview with Arabian Business to be published in full on Sunday, managing director Robin Lohmann defended his development funds in which investors put 50m euros ($69.5m).

Although the first fund has healthy returns, funds 2-5 were due to return profits in March this year. Lohmann has faced stern criticism in the German media, after investors who put up to millions of euros into his funds did not receive payments earlier this year.

But Lohmann said: "Money back is not an option as this point of time, the money has been invested in the land, which is fully paid, the money has been spend in the development, which is normal, the contractor and suppliers are not working for free, also not for a branded tower.

"The only way to get the money back is to complete the building from our side and third party purchasers have to fulfill their payment obligations as well."

In the interview, he also firmly denied that the money due back in March is linked to investments in the Michael Schumacher and Niki Lauda branded towers.

"These funds are only due in the year of 2012, so all the press releases which have been published over the last weeks are badly researched and untrue.

"But for sure it is more interesting for journalists and Dubai experts to involve celebrities’ names in headlines instead of writing a true story, these headlines are selling - celebrities are selling – this is why we have chosen them as well."

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READERS' COMMENTS

What a position to Declare
Posted by The Don, Dubai, United Arab Emirates on Monday 20 July 2009 at 23:19 UAE time


You have no right to set a law for your own developments which basically tells your investors: I will take your money and promise you (not contractually commit) to deliver a branded building... If I fail to deliver on my promise (again not my contractual commitment) you will not get back your money or any asset that can be liquidated to help you recover some of your investments.

Although the text in the code is not clear the spirit of law is crystal clear, if you sell something you must deliver it to the purchaser...if you don't then you are in a serious trouble.

Assuming you are right, then let an independent 3rd party auditor to be appointed by investors/purchaser to review projects finances, assets, contracts, commitments...etc and prepare a report to assist you and your investors in reaching to an agreement. If investors/purchasers sue you in Dubai you will get a third party auditor appointed by the court reviewing all your books, submitting a report to the court and your negotiation will be in court hall not in your board meeting room.

No Refund !!
Posted by Ahmed Salim, Dubai, UAE on Saturday 11 July 2009 at 21:25 UAE time


If you are not willing to pay people's money back, then show them that you didn't spend their money only on advertisments and nothing in real .

ACI DEBACLE
Posted by AM, AD, UAE on Saturday 11 July 2009 at 08:47 UAE time


Saleem's statement that the project has been ongoing for 3 years refutes the comment's by Peter that poor Mr Lohmann was somehow a victim of the World credit crisis which started some 9 months ago. 3 years and a hole in the ground; clearly the money collected was not used for the project.

Lohman is loosing it
Posted by kevin, Abu Dhabi, UAE on Saturday 11 July 2009 at 00:50 UAE time


I am really surprised the way Lohman is conducting himself...he thinks he is talking to his maid, gardener or driver!!!!! wake up, this is people's money and lives you are gambling with. If you can't return the money or build the tower..then you need to at least step down from your position and let someone who has the guts to lead ACI.

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