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28 March 2024

'Revive ACI, help 10,000 investors'

Published
By Parag Deulgaonkar

More than 10,000 investors in Dubai and Europe will benefit if the stalled real estate projects of German Alternative Capital Invest (ACI) in the emirate can be restarted, but administrative delays are impeding the process.

“The German liquidator (Dr Norbert Westhoff) and I are discussing the continuation of the funds. Therefore, we have to look how the funds can get the ownership of the projects,” ACI Investors' Group spokesperson Rainer Regnery told 'Emirates24|7'.

“We are working for the concept to get the ownership of the projects, realise them with a joint venture partner and to pay back the money to the local investors in Dubai and investors in Germany, Austria and Switzerland.”

In September 2010, the German property investment firm had declared bankruptcy on four of its seven funds.

Asked if the German bankruptcy court had passed any judgement on Dubai projects, he said: “We need some documents from Dubai to get the judgement.

The problem is the communication between the two administrations. If the local administration would handover all documents to me, then we could accelerate the procedure for more than 10,000 investors in Dubai and Europe.”

He claims to have a power of attorney from the liquidator and the German court, attested from the UAE embassy in Berlin and the Ministry of Interior in Dubai.

In March, Ludmila Yamalova, Managing Partner, HPL Yamalova & Plewka, told this website that a conflict of law is likely to come into play during the execution of the order of the German bankruptcy court in the ACI case.

“The ACI funds have investors in Germany, while investors in Dubai have paid for apartments in their projects. We are uncertain how the Germany liquidator will dispose off assets in Dubai and how the creditors will be prioritised,” she said.

Currently, Regnery says they are looking at restarting the three branded towers - Michael Schumacher Business Avenue, Boris Becker Business Tower and Niki Lauda Twin Towers – in Business Bay.

“We are already discussing for a month with investors to get fresh money.

There are also more projects such as Q-Sami Tower, Victory Bay Tower (Business Bay)… the complete projects must be restructured and for this we offer our support.”

Regnery said he has taken up the ACI case with the Real Estate Regulatory Agency and Dubai Properties Group, the master developer’s of Business Bay.

“Of course, I am discussing personally with the company officials, etc.… they have a complete documentation about the ACI case.”

Asked if Venture Gate, a company founded and run by Regnery, had invested in any projects of ACI, he said: “Venture Gate has invested in the Boris Becker Tower. Therefore, we know the German side and the Dubai side. We are also in the discussion with Dubai investors to link the interests and to finalise the solution for all parties.”

ACI had, in an e-mail sent to investors in March, said: “… lodging your claim under insolvency proceedings in Germany does not alter your existing contractor/legal position under the UAE laws and regulations.This intimation assistance should not be considered as to create any commitment or obligations on part of Alternative Capital Invest-GMBH (Dubai Branch) or ACI Real Estate LLC-Dubai as these are separate legal entities that do not form a part of the insolvency proceedings in Germany.”