By Shane McGinley
Irish buyers to meet with property firm on Tuesday over stalled projects in Dubai.
An Indian company will meet with a group of Irish investors in Dublin on Tuesday in a bid to strike a deal to rescue a number of projects in the Dubai Sports City development, Arabian Business has learnt.
Up to 1,000 Irish investors bought properties in Dubai Sports City through the Dublin-based Larionovo overseas property agency, which ran into financial difficulties and went into liquidation in early 2009.
Around 130 investors, who had each invested a minimum of 75,000 Euro ($89,797.99), set up the Dubai Action Group and attempted to recoup their money from Profile Group, the Dubai-based parent company of Larionovo.
Last week, Probir Chatterjee, the former financial controller of Profile Group, and a number of other Indian businessmen, set up the Innovation Group and took over the Profile Group’s Dubai Sports City projects, which include Eagle Heights, Bermuda Views and Profile Residence.
“The original developer… sold or gave his shareholding to this new Indian company because he either cannot or does not want to build out these units,” Tony Hynes, chairman of the Dubai Action Group, told Arabian Business.
Earlier this week, Chatterjee met with British investors in the developments and he has arranged to meet Irish investors in Dublin on Tuesday and Wednesday, in a bid to persuade them to invest the remainder of the money due in order to complete construction of the units.
“A lot of [Irish investors] have paid 65 percent upfront and I imagine [Chatterjee] needs the 35 percent to finance the building out. So I imagine that is what he is doing here, getting a feeler for who is going to close and who isn’t,” Hynes said.
He added that Chatterjee is aiming to get the finance in place to start construction on the units this month and plans to have them completed within eighteen months.
It is estimated that since 2002 up to 5,000 Irish investors pumped money into developments across Dubai, some of which have now run into difficulty since the onset of the global property downturn in 2008.
‘The simple fact is that too many apartments were being built. It was unsustainable. Investors who got in very early did well if they sold. But most didn’t," said Ronan O’Driscoll, director at the Savills agency in Dublin told the Sunday Business Post newspaper in November last year.
In March 2009, John O’Dolan, one of Ireland's leading building developers and owner of the island of Ireland on The World manmade project off the coast of Dubai took his own life amid rumours of financial worries as a result of the global economic crisis.
..that it can sustain and rescue what is already lost. But what is lost remains lost..!! Move on to newer avenues..The remainder capital which still stays around is due to the fact of hoping entrepreneurs who are wishing that the return of this cosmopolitan 'might' be near..
And meanwhile the projects with the master developer Sports City remain in limbo. Investors money held safely in ESCROW accounts but with empty promises for 4 years of not even breaking ground there is still no means to release the money. Investors are still not backed with any leglislation that has teeth and until this is resolved the confidence in the real estate sector will remain firmly in the doldrums. Get it touch if you want to join a growing Sports City pressure group.
Besides Sports City, there is also other properties by Irish developers such as Dubai Waterfront which have gone silent. What would be the role of Dubai Action Group ? How can we contact them ?
Lucky for you Ting Tong Scotsman although many didn't see this happening, who would have thought that developers were not going to build as per the contract. Victory Heights has just not long been completed but the whole area still looks like a construction site which is surrounded by a backdrop of uncompleted buildings or some that will never get off the ground. The prices have fallen dramatically. Many people have been affected just like this story in the article and it wasn't the GFC to blame as is often being portrayed and where this is being often relied upon by certain developers who try to provide any excuse possible but would be thrown out legally if the process was not so one-sided. The master developer is to blame also as their projects have not eventuated, including the promised stadiums and the shopping mall - how many millions invested in this by unsuspecting investors and what has happened with their money. It all looked good in those glossy brochures, take a look on utube the promotional videos, anyone would believe that these places actually existed, In many circumstances that money wasn't put into escrow either as no evidence of this has ever been provided upon request which is also law. Contact for the group of irish investors is www dot concerneddubaisportscityinvestors dot com/ Their website is informative. Calling all genuine folk who have invested in Oasis 1 and 2 Towers - please make urgent contact with oasisinvestors at googlemail dot com - this is an urgent call for the genuine folk out there only, please no time wasters thank you.
While there are still a number of expats here, I know a huge number who are winding up their businesses, jobs, responsibilities here in Dubai, and are looking to move on in the next year or so - have lived here for more than 20 years, and even we are looking to get out of Dubai - the dream is over, and there is no recovery in sight - its sad that people who invested in projects have their equity locked away, with no asset in place and no opportunity to reclaim their money - but the truth is, the money doesn't exist anymore, it was used to pay contractors or line pockets - if you get anything out of these guys - you will be very lucky indeed.
this exposes more investors in Dubai Sports city similar to this article - watch this http://www.youtube.com/watch?v=Uw3PfxuFwq8 contact oasisinvestors @ googlemail dot com