Investors reject Damac refund proposal

The Palm Springs Investor Group has rejected the refund proposals of Damac Properties, terming it largely “unsatisfactory.”

“The offer of Damac to return 70 per cent of deposits paid eight years ago as compensation for their inability to respect their contractual obligations is largely unsatisfactory to the group and discussions are ongoing,” Craig Murray, a member of the group, said in an email sent to Emirates 24|7.

This website reported on Tuesday that Damac had offered cash refund options to investors in Palm Springs project.

Investors claimed 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.

Niall McLoughlin, Senior Vice-President Corporate Communication, Damac Properties, in an emailed statement, had 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.”

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.

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

Damac offers cash refund
options to Palm Springs investors

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