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Discuss this article (12 Comments)EXCLUSIVE: Damac accused over selling flats on UN site in Dubai
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 16 July 2009
UN SITE: The UN has a considerable presence in Business Bay in Dubai. (Getty Images)
A UK lawyer has accused Dubai property group Damac of selling off-plan units on a plot which it knew was occupied by the United Nations (UN).
The UN has a considerable presence in Business Bay - and occupies the site where Damac plans to build two residential projects: La Residence and La Residence 2 at the Lotus.
The projects were launched in late 2006 and early 2007.
Retired lawyer Jeff Kershaw, who lived in Dubai for 11 years but is now based in the UK, is preparing legal action against the private developer over the dispute.
His UK-based client, who is one third of the way into the payment plan - having paid installments worth AED420,000 on the property worth AED1.39m - is demanding a refund, which the developer is so far refusing.
“I want to know whether Damac recklessly forged ahead to sell off-plan units on a site which they knew they couldn’t build on,” Kershaw told Arabian Business.
“My client paid his money in 2007 in good faith but in his case Damac claim they are unable to start building as the United Nations have a tenancy agreement over the land or part of it,” he added.
“They did not in our meeting offer this information immediately and only yielded it under pressure.”
Damac on Thursday was at a loss to explain when the plot would be handed over by the master developer Dubai Properties and when construction would start at Lotus.
In a statement a Damac spokesman said: “Damac Properties is unable to commence works at this time at the Lotus plot. This is due to the relocation of the existing occupant at the site. Until such time as a plot is handed over to Damac, construction cannot commence.
“When timeframes are discussed with customers, all indicated timelines are from the date the plot is handed to Damac for commencement of construction. This project will be completed within 36 months from handover of land,” the spokesman added.
Damac owns the land at the Lotus development site.
La Residence is a planned 58-storey tower, while La Residence 2 will be 64 stories high. In February 2007, Damac said 83 percent of La Residence had been sold.
Damac Properties is part of conglomerate Damac Holdings.
The UN has a number of agencies based in Business Bay such as UNOPS (the United Nations Offers for Projects Services). UNOPS is a member of the International Humanitarian City (IHC), a Dubai free zone.
A spokesman for IHC was unavailable for comment.
READERS' COMMENTS
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Lake Side project by Damac
Posted by Rashid on Tuesday 16 February 2010 at 21:20 UAE time
We got the residential contract with Damac on Lake Side project in IMPZ. We paid 30% by plan in 2007, but still Damac can not find even the construction partner for the project. It did not started till now, but by plan it should be finished in 2010. We killed our money investing in the air. We have been promised of escrow account as a guarantee that if some thing goes out of plan, we can reimburse our finance, but seems everybody is out of office, or they don't know what to answer 3 years later. If there is anyone on the same project, and got the proper answer from Damac regarding current situation, pls let me know about. And I am sure that the government must intervene and help to expat investors with this other cases, since there are many of them.
Posted by Rashid on Tuesday 16 February 2010 at 21:20 UAE time
We got the residential contract with Damac on Lake Side project in IMPZ. We paid 30% by plan in 2007, but still Damac can not find even the construction partner for the project. It did not started till now, but by plan it should be finished in 2010. We killed our money investing in the air. We have been promised of escrow account as a guarantee that if some thing goes out of plan, we can reimburse our finance, but seems everybody is out of office, or they don't know what to answer 3 years later. If there is anyone on the same project, and got the proper answer from Damac regarding current situation, pls let me know about. And I am sure that the government must intervene and help to expat investors with this other cases, since there are many of them.
Can the law suit add Pearl Properties "Developers" of the Palisades
Posted by Frank Cintara Jr., Dubai, UAE on Tuesday 28 July 2009 at 11:11 UAE time
Received 20% from everybody in what amounts to a new city near the proposed new airport in Dubai and have yet to dig one hole in the ground more than 2 years into the project!!!! They won't refund either although strangely enough they did offer refunds (minus "service" charges" and wihtdrew their offer for anybody who accepted!!! )
You know who is th supposed owner of the Palisades? HRH Shaikh Issa Bin Zayed. And to imagine the management of this project has been tormenting some 2000 property owners/hopefuls for this long with such skewed tactics.
Oh, for disclosure, I must say that the developer has invited a famous Lebanese singer twice for an openning (same singer) and twice there was a ceremony of initiation. The developer is also rumored to have given away units to other singers =) Feels good to be skewered with celebreties...not really they did not pay 20%, still without a contract with a legal system that requires you to pay 7.5% of the total original value of the property to take the developer to court!!!!!
I appeal from this forum to HRH Shaikh Khalifa bin Zayed and then to HRH Shaikh Mohammed bin Rashid to look into this Palisades fiasco.
Posted by Frank Cintara Jr., Dubai, UAE on Tuesday 28 July 2009 at 11:11 UAE time
Received 20% from everybody in what amounts to a new city near the proposed new airport in Dubai and have yet to dig one hole in the ground more than 2 years into the project!!!! They won't refund either although strangely enough they did offer refunds (minus "service" charges" and wihtdrew their offer for anybody who accepted!!! )
You know who is th supposed owner of the Palisades? HRH Shaikh Issa Bin Zayed. And to imagine the management of this project has been tormenting some 2000 property owners/hopefuls for this long with such skewed tactics.
Oh, for disclosure, I must say that the developer has invited a famous Lebanese singer twice for an openning (same singer) and twice there was a ceremony of initiation. The developer is also rumored to have given away units to other singers =) Feels good to be skewered with celebreties...not really they did not pay 20%, still without a contract with a legal system that requires you to pay 7.5% of the total original value of the property to take the developer to court!!!!!
I appeal from this forum to HRH Shaikh Khalifa bin Zayed and then to HRH Shaikh Mohammed bin Rashid to look into this Palisades fiasco.
Selling flats on UN site
Posted by GWhiz, Dubai, UAE on Sunday 19 July 2009 at 15:21 UAE time
There now needs to be a time for reflection for Dubai. Investors money has obviously been blatantly used by the unscrupulous for careless projects without thought or mind of HH's vision for Dubai. It is all very well to claim that no money can be returned as both sides went in with their eyes open, if money was made from these projects then we would have nothing to discuss except crowing how wonderful the huge construction site, that Dubai has become, can only increase. NOW is the time to stop, think about the infrastructure and decide where we go from here. Rest Dubai, reflect. '
Decisions NEED to be made as to sort out the question of the investors money, which amounts to millions if not more. To address the further question as to who exactly or what business is going to take over the buildings that have already been constructed but lie empty. I do not think that the leadership envisioned one Emirati per tower was quite in their minds! This is not making light of the above situation, this is a situation that needs addressing so seriously that ALL businesses should have an input into the next steps as well as the people and the Government.
If projects have been started, then they should be finished, any new ones taken off the plan and money returned. Easy to say I hear, even whimsical by some business "experts", but a pragmatic approach needs to be addressed asap. Visas for residents should be addressed logically. Lifetime, non transferable visas for property owners, so that the owner can then sell the property as and when (NO FLIPPING) and the following owner can be reassured of buying a secure home/investment with their own visa, which will be obtained as they are investing in the country via property. Citizenship should be also addressed, on a points basis as per any other country, investment, property, age, skills experience, family etc etc. Thus this gives the local population a say as to WHO resides in their country and as to what benefits, long term, they will bring to the country. As one can see, so many transient people passing through taking their money or sending it home without helping the GDP of the host country will never work, the host country will be forever reliant on outside help.
Dubai needs a rest after ten/twenty years of spectacular growth. Even DEWA cannot cope with the demand that is asked of it, the current buildings in some areas are cracking under the strain.
The people whom have commented above perhaps see this as cynical due to their losses, but this is what investors do, some you win some you lose, it is called risk, unfortunately due to the greed of the few, many have been burnt, where all wanted a stake in Dubai. Dubai does not need to sell itself anymore, everyone knows where Dubai is, good or bad, let us hope she stands back and looks at the achievements and the failings with new eyes in this very uncertain world.
Posted by GWhiz, Dubai, UAE on Sunday 19 July 2009 at 15:21 UAE time
There now needs to be a time for reflection for Dubai. Investors money has obviously been blatantly used by the unscrupulous for careless projects without thought or mind of HH's vision for Dubai. It is all very well to claim that no money can be returned as both sides went in with their eyes open, if money was made from these projects then we would have nothing to discuss except crowing how wonderful the huge construction site, that Dubai has become, can only increase. NOW is the time to stop, think about the infrastructure and decide where we go from here. Rest Dubai, reflect. '
Decisions NEED to be made as to sort out the question of the investors money, which amounts to millions if not more. To address the further question as to who exactly or what business is going to take over the buildings that have already been constructed but lie empty. I do not think that the leadership envisioned one Emirati per tower was quite in their minds! This is not making light of the above situation, this is a situation that needs addressing so seriously that ALL businesses should have an input into the next steps as well as the people and the Government.
If projects have been started, then they should be finished, any new ones taken off the plan and money returned. Easy to say I hear, even whimsical by some business "experts", but a pragmatic approach needs to be addressed asap. Visas for residents should be addressed logically. Lifetime, non transferable visas for property owners, so that the owner can then sell the property as and when (NO FLIPPING) and the following owner can be reassured of buying a secure home/investment with their own visa, which will be obtained as they are investing in the country via property. Citizenship should be also addressed, on a points basis as per any other country, investment, property, age, skills experience, family etc etc. Thus this gives the local population a say as to WHO resides in their country and as to what benefits, long term, they will bring to the country. As one can see, so many transient people passing through taking their money or sending it home without helping the GDP of the host country will never work, the host country will be forever reliant on outside help.
Dubai needs a rest after ten/twenty years of spectacular growth. Even DEWA cannot cope with the demand that is asked of it, the current buildings in some areas are cracking under the strain.
The people whom have commented above perhaps see this as cynical due to their losses, but this is what investors do, some you win some you lose, it is called risk, unfortunately due to the greed of the few, many have been burnt, where all wanted a stake in Dubai. Dubai does not need to sell itself anymore, everyone knows where Dubai is, good or bad, let us hope she stands back and looks at the achievements and the failings with new eyes in this very uncertain world.
Not Just DAMAC
Posted by Peter Peter, dubai, UAE on Saturday 18 July 2009 at 17:01 UAE time
Deeyar have collected money from us for apartments in Jebel Ali for which they have not yet acquired the land. So it is not just DAMAC who is guilty of this kind of behavior.
I would like to appeal to HH Sheikh Mohammed to intervene personally and release the money of innocent expat investors who believed in his vision and his dream and put their hard earned money into Dubai. Most of our money is sitting in Escrow accounts and it would be better if we can invest it in other completed properties which can then become humming communities instead of just empty shells.
Unless something is done Dubai will be more widely known for the pain and deprivation of its expat population than for the beautiful and throbbing city that H.H. envisioned.
Your Highness , PLEASE DO SOMETHING .
Posted by Peter Peter, dubai, UAE on Saturday 18 July 2009 at 17:01 UAE time
Deeyar have collected money from us for apartments in Jebel Ali for which they have not yet acquired the land. So it is not just DAMAC who is guilty of this kind of behavior.
I would like to appeal to HH Sheikh Mohammed to intervene personally and release the money of innocent expat investors who believed in his vision and his dream and put their hard earned money into Dubai. Most of our money is sitting in Escrow accounts and it would be better if we can invest it in other completed properties which can then become humming communities instead of just empty shells.
Unless something is done Dubai will be more widely known for the pain and deprivation of its expat population than for the beautiful and throbbing city that H.H. envisioned.
Your Highness , PLEASE DO SOMETHING .
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