Damac offers cash refund options

In an effort to end the stalemate with investors of Palm Springs project in Palm Jebel Ali, Damac Properties has offered them cash refund options, 'Emirates 24|7' can reveal.

Investors claim that company executives of the Dubai-based developer, who recently met them, offered the options of cash refund at 70 per cent within two weeks, or 100 per cent with 25 per cent paid within two weeks and the rest paid at 25 per cent over the three subsequent years.

Although the developer did not respond to our queries, Niall McLoughlin, Senior Vice-President Corporate Communication, Damac Properties, in an emailed statement, said: “Damac is fully committed to working with Palm Springs Investors to bring closure to this issue.”

An investor, who refused the offer, on conditions of anonymity, said: “I was told that Damac was bound by two other parties as to what could be offered… and this was the maximum. I said I could not accept that other parties were able to impose commercial decisions on Damac such as how much to refund their customers.”

A post by another investor on the Palm Springs Investor Group forum, read: “I was told there would be no further offers from Damac. I was also asked to sign a document to say I am rejecting the offers, which I refused to do.”

Palm Springs was designed to be a 25-storey beachfront development on Palm Jebel Ali.

A Nakheel spokesperson had told this website in June that Palm Jebel Ali and Palm Deira projects have not been cancelled and remain part of “long-term” projects.

This website has reported earlier that Nakheel has been offering consolidation options to Palm Jebel Ali investors.

In 2008, Damac had attempted to cancel the project but agreed to reinstate the project after investors protested.

Real Estate Regulatory Agency’s (Rera) Masaar (project indicator) report, dated 29/11/2010, says works haven’t started onsite and the project plot has not been handed over to the developer. It further says the developer is in the process of amalgamating the two plots (Paca 15 and 16) and get the new affection plan after amalgamation.

As of May 31, 2011, Rera has cancelled 217 projects. The emirate has witnessed completion of 129 projects since 2009 with 237 out of 450 projects likely to be completed in due course.

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