Nakheel mulls $15bn IPO move - reports - Real Estate - ArabianBusiness.com
Palm developer Nakheel is reportedly considering plans for an initial public offering (IPO) to raise up to $15 billion.
A report on Monday by newswire Bloomberg quoted unnamed bankers that the developer, the UAE's biggest developer by project value with nearly $80 billion worth of schemes in the pipeline, is also looking for IPO managers.
A Nakheel spokesperson neither confirmed nor denied the move, and was quoted by UAE daily Gulf News on Tuesday as saying: "A company as large as Nakheel is constantly exploring a number of capital raising options, be it traditional debt issues, private equity, real estate investment trusts and direct project financing from banks."
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http://www.arabianbusiness.com/540083-nakheel-mulls-15bn-ipo-move---reports
Showing posts with label The Palm. Show all posts
Showing posts with label The Palm. Show all posts
Tuesday, 2 December 2008
Nakheel cuts staff, delays projects - The National Newspaper
Nakheel cuts staff, delays projects - The National Newspaper
Nakheel has made 500 of its staff redundant as it delays work on major projects including the Trump International Tower and Hotel on Palm Jumeirah, Waterfront, Palm Jebel Ali and The Universe, the company said yesterday.
The decision is another sign of the global economic slowdown affecting the property sector. Banks have tightened lending, prices have dropped and sales have slowed, forcing developers to review their expansion plans.
The job losses make up 15 per cent of Nakheel’s workforce, which now stands at 3,000, and follow at least four years of breakneck hiring.
Nakheel said in a statement that the layoffs were “a responsible action in light of the current global market conditions”.“The redundancies are indeed regrettable, but a necessity dictated by operational requirements which are in turn dependent on demand.”
In another statement, Nakheel said it was delaying long-term infrastructure work on some of its projects.The projects include Frond N villas, Gateway Towers and Trump International Hotel and Tower on Palm Jumeirah.At Waterfront, work on Madinat Al Arab, Venetto, Badra and Canal District is continuing as planned, but other phases will be delayed.
The company has already slowed reclamation work on parts of Palm Deira, the largest of the Palm island trilogy, while the pace of construction on components of Palm Jebel Ali is expected to slow.
Work on The Universe, a collection of reclaimed islands planned to be built between Palm Jumeirah and Palm Deira and launched in January this year, will also be restricted to preliminary engineering studies.
The statement said: “Nakheel is delaying long-dated infrastructure work on some of our projects in order to ensure that our business model is aligned to meet market demand. We have the responsibility to adjust our short-term business plans to accommodate the current global environment.
Work on all other Nakheel projects is ongoing as planned.”
Reclamation on The Universe was intended to begin by the end of this year and negotiations were under way with at least three contractors. The contractors now expect the project to be awarded much later. “We are in talks, but I think the contract will be awarded much later than December,” said one contractor. In the past month, almost 1,000 job losses have been confirmed by developers in Dubai.Damac Properties, the emirate’s largest private developer, laid off 200 of its 8,000-strong workforce, while 180 out of 350 staff at Tameer Holding, another Dubai developer, were told they would lose their jobs by the end of this month. Omniyat Properties also confirmed 69 redundancies from its workforce of 350.“It’s not unusual for companies to downsize during a recession,” said Peter Walichnowski, the chief executive of Omniyat Properties. “Also, if the skill-sets are not required it’s best for people to find other jobs that want and need them at that point in time.”Still, Omniyat plans to boost staff numbers in its customer care and facilities management divisions in time for the completion of projects, three of which will be handed over early next year.“We need to allocate resources into areas of the company that are more appropriate,” said Alex Andarakis, the company’s director of sales and marketing.Recruitment experts said that while there has been a slowdown in Abu Dhabi, redundancies have so far only hit Dubai, but are now trickling down to construction consultancy firms and contractors. According to Duncan Murray, a consultant at Duneden Recruitment, the situation has led to “too many people looking for too few jobs”. “Companies in Dubai are culling people left, right and centre,” he said. “It’s now a case of people not knowing each day whether they’re going to have a job or not.”And as developers and construction firms freeze hiring, recruitment companies are aggressively looking to place applicants in jobs elsewhere in the GCC.“People will just have to go to places like Qatar and Saudi Arabia if they want to work,” said Mr Murray.“It will be a lot harder for families, but people can’t afford to be fussy and they will also need to be more flexible and accept pay cuts.”Mr Murray predicted that it could be early 2010 before companies think about recruiting again.“It will be a difficult 12 months ahead,” he said.agiuffrida@thenational.aebhope@thenational.ae
Nakheel has made 500 of its staff redundant as it delays work on major projects including the Trump International Tower and Hotel on Palm Jumeirah, Waterfront, Palm Jebel Ali and The Universe, the company said yesterday.
The decision is another sign of the global economic slowdown affecting the property sector. Banks have tightened lending, prices have dropped and sales have slowed, forcing developers to review their expansion plans.
The job losses make up 15 per cent of Nakheel’s workforce, which now stands at 3,000, and follow at least four years of breakneck hiring.
Nakheel said in a statement that the layoffs were “a responsible action in light of the current global market conditions”.“The redundancies are indeed regrettable, but a necessity dictated by operational requirements which are in turn dependent on demand.”
In another statement, Nakheel said it was delaying long-term infrastructure work on some of its projects.The projects include Frond N villas, Gateway Towers and Trump International Hotel and Tower on Palm Jumeirah.At Waterfront, work on Madinat Al Arab, Venetto, Badra and Canal District is continuing as planned, but other phases will be delayed.
The company has already slowed reclamation work on parts of Palm Deira, the largest of the Palm island trilogy, while the pace of construction on components of Palm Jebel Ali is expected to slow.
Work on The Universe, a collection of reclaimed islands planned to be built between Palm Jumeirah and Palm Deira and launched in January this year, will also be restricted to preliminary engineering studies.
The statement said: “Nakheel is delaying long-dated infrastructure work on some of our projects in order to ensure that our business model is aligned to meet market demand. We have the responsibility to adjust our short-term business plans to accommodate the current global environment.
Work on all other Nakheel projects is ongoing as planned.”
Reclamation on The Universe was intended to begin by the end of this year and negotiations were under way with at least three contractors. The contractors now expect the project to be awarded much later. “We are in talks, but I think the contract will be awarded much later than December,” said one contractor. In the past month, almost 1,000 job losses have been confirmed by developers in Dubai.Damac Properties, the emirate’s largest private developer, laid off 200 of its 8,000-strong workforce, while 180 out of 350 staff at Tameer Holding, another Dubai developer, were told they would lose their jobs by the end of this month. Omniyat Properties also confirmed 69 redundancies from its workforce of 350.“It’s not unusual for companies to downsize during a recession,” said Peter Walichnowski, the chief executive of Omniyat Properties. “Also, if the skill-sets are not required it’s best for people to find other jobs that want and need them at that point in time.”Still, Omniyat plans to boost staff numbers in its customer care and facilities management divisions in time for the completion of projects, three of which will be handed over early next year.“We need to allocate resources into areas of the company that are more appropriate,” said Alex Andarakis, the company’s director of sales and marketing.Recruitment experts said that while there has been a slowdown in Abu Dhabi, redundancies have so far only hit Dubai, but are now trickling down to construction consultancy firms and contractors. According to Duncan Murray, a consultant at Duneden Recruitment, the situation has led to “too many people looking for too few jobs”. “Companies in Dubai are culling people left, right and centre,” he said. “It’s now a case of people not knowing each day whether they’re going to have a job or not.”And as developers and construction firms freeze hiring, recruitment companies are aggressively looking to place applicants in jobs elsewhere in the GCC.“People will just have to go to places like Qatar and Saudi Arabia if they want to work,” said Mr Murray.“It will be a lot harder for families, but people can’t afford to be fussy and they will also need to be more flexible and accept pay cuts.”Mr Murray predicted that it could be early 2010 before companies think about recruiting again.“It will be a difficult 12 months ahead,” he said.agiuffrida@thenational.aebhope@thenational.ae
Builders struggle to get payments - The National Newspaper
Builders struggle to get payments - The National Newspaper
Construction firms in Dubai are struggling to get payments from some developers as major projects stall and further doubt is cast over the feasibility of others.
Meraas Development, a company controlled by the Dubai government, became the latest to announce a review of a major development, the Dh350 billion (US$95.3bn) Jumeirah Gardens City project, in light of the global economic downturn.
It followed an announcement by Nakheel on Sunday that it was delaying work on projects including the Trump International Tower and Hotel on Palm Jumeirah, Waterfront, Palm Jebel Ali and The Universe.
The Jumeirah Gardens City project, which will raze the district of Satwa in Dubai to make way for a number of tall towers, a park and a canal system, was only launched at Dubai’s Cityscape in October.
“We are simply reviewing our business strategy, as well as the phasing and rollout of the Jumeirah Gardens project, to make sure the development proceeds in the most opportune way to meet changing investor needs,” Meraas said.The company said there would be more clarity on the project by the beginning of next year.Contractors including Dutco Balfour Beatty, Samsung Engineering and Construction, Al Habtoor Leighton Group and Murray & Roberts are among those working on Nakheel’s projects.
“We’re still reviewing things at the moment to see where we stand,” said Grahame McCaig, the general manager of Dutco Balfour Beatty. “Getting payment is worse than usual; we’ve really struggled to get paid by a lot of people.
At the moment, the cash issue is far bigger than the workload one.”
Al Habtoor Leighton Group, a joint venture between Australia’s Leighton International and Dubai’s Al Habtoor Engineering, had been working on the Dh2.9bn contract to build the Trump International Hotel and Tower in partnership with Murray & Roberts, a South African construction firm, since July.
The company is trying to recover costs now that the project has been suspended, but said last week’s Dh8.85bn contract win to build Dubai Pearl would help to cushion the blow. It is not yet known when work on Trump Tower will resume. “This is something we’re in discussions about,” said Chris Gordon, the general manager of corporate affairs and strategy at Leighton International. “We’ve been fortunate in that we’ve secured work on other projects, so that should cover things, and we can move staff on to those.”
Mr McCaig added that developers were legally obliged to reimburse contractors for costs incurred, should a contract be cancelled. “They either cover the costs incurred to date, or agree [on] a reasonable cost. It’s an important part of the termination process.”While Samsung Engineering & Construction, a South Korean firm, has not had any of its deals with Nakheel stalled, the company has been experiencing delays in payments on certain jobs.
“We’re getting delays in payment by about two to three weeks now,” said Beejay Kim, a senior manager with Samsung Engineering, which is also building Emaar’s Burj Dubai with Arabtec and BESIX Group.
Samsung Engineering is one of five companies that have been invited to bid for the construction of the kilometre-high tower, which will form part of the Dh140bn Nakheel Harbour & Tower development in Dubai, also launched at Cityscape in October.
Groundwork started earlier this year and is among Nakheel’s projects that are expected to go ahead. agiuffrida@thenational.ae
Construction firms in Dubai are struggling to get payments from some developers as major projects stall and further doubt is cast over the feasibility of others.
Meraas Development, a company controlled by the Dubai government, became the latest to announce a review of a major development, the Dh350 billion (US$95.3bn) Jumeirah Gardens City project, in light of the global economic downturn.
It followed an announcement by Nakheel on Sunday that it was delaying work on projects including the Trump International Tower and Hotel on Palm Jumeirah, Waterfront, Palm Jebel Ali and The Universe.
The Jumeirah Gardens City project, which will raze the district of Satwa in Dubai to make way for a number of tall towers, a park and a canal system, was only launched at Dubai’s Cityscape in October.
“We are simply reviewing our business strategy, as well as the phasing and rollout of the Jumeirah Gardens project, to make sure the development proceeds in the most opportune way to meet changing investor needs,” Meraas said.The company said there would be more clarity on the project by the beginning of next year.Contractors including Dutco Balfour Beatty, Samsung Engineering and Construction, Al Habtoor Leighton Group and Murray & Roberts are among those working on Nakheel’s projects.
“We’re still reviewing things at the moment to see where we stand,” said Grahame McCaig, the general manager of Dutco Balfour Beatty. “Getting payment is worse than usual; we’ve really struggled to get paid by a lot of people.
At the moment, the cash issue is far bigger than the workload one.”
Al Habtoor Leighton Group, a joint venture between Australia’s Leighton International and Dubai’s Al Habtoor Engineering, had been working on the Dh2.9bn contract to build the Trump International Hotel and Tower in partnership with Murray & Roberts, a South African construction firm, since July.
The company is trying to recover costs now that the project has been suspended, but said last week’s Dh8.85bn contract win to build Dubai Pearl would help to cushion the blow. It is not yet known when work on Trump Tower will resume. “This is something we’re in discussions about,” said Chris Gordon, the general manager of corporate affairs and strategy at Leighton International. “We’ve been fortunate in that we’ve secured work on other projects, so that should cover things, and we can move staff on to those.”
Mr McCaig added that developers were legally obliged to reimburse contractors for costs incurred, should a contract be cancelled. “They either cover the costs incurred to date, or agree [on] a reasonable cost. It’s an important part of the termination process.”While Samsung Engineering & Construction, a South Korean firm, has not had any of its deals with Nakheel stalled, the company has been experiencing delays in payments on certain jobs.
“We’re getting delays in payment by about two to three weeks now,” said Beejay Kim, a senior manager with Samsung Engineering, which is also building Emaar’s Burj Dubai with Arabtec and BESIX Group.
Samsung Engineering is one of five companies that have been invited to bid for the construction of the kilometre-high tower, which will form part of the Dh140bn Nakheel Harbour & Tower development in Dubai, also launched at Cityscape in October.
Groundwork started earlier this year and is among Nakheel’s projects that are expected to go ahead. agiuffrida@thenational.ae
Trump Tower suspended, says Australian contractor - The National Newspaper
Trump Tower suspended, says Australian contractor - The National Newspaper
The proposed Trump Tower on the Palm Jumeirah, a Dh2.9 billion (US$800m) project announced earlier this year, has been suspended, says the Australian construction firm contracted to build it, according to The Australian newspaper.
Citing “easing market conditions,” the Australia-listed Leighton Holdings said today the project was on hold, and that Nakheel, the developer, had agreed to cover all costs incurred to date, paper said.
The tower was to be a centerpiece of the Palm Jumeirah project.
In June a buyer offered $3,000 per square foot, or close to $30m for a penthouse in the development, more than twice the going rate of Dubai’s next most expensive properties.
This follows last week’s announcement by Trump Entertainment Resorts that it would miss a $53.1m bond interest payment due on Dec 1, in an effort to “maintain sufficient liquidity.”
Trump Entertainment, chaired by property magnate Donald Trump, was created out of a bankruptcy restructuring in 2005.At the same time Deutsche Bank said it would sue Mr Trump over the developer’s troubled Chicago condominium and hotel project, according to the Wall Street journal.The bank says Mr Trump personally owes $40 million after defaulting on a $640 million construction loan for Trump International Hotel & Tower under construction in the windy city.
*With agencies
The proposed Trump Tower on the Palm Jumeirah, a Dh2.9 billion (US$800m) project announced earlier this year, has been suspended, says the Australian construction firm contracted to build it, according to The Australian newspaper.
Citing “easing market conditions,” the Australia-listed Leighton Holdings said today the project was on hold, and that Nakheel, the developer, had agreed to cover all costs incurred to date, paper said.
The tower was to be a centerpiece of the Palm Jumeirah project.
In June a buyer offered $3,000 per square foot, or close to $30m for a penthouse in the development, more than twice the going rate of Dubai’s next most expensive properties.
This follows last week’s announcement by Trump Entertainment Resorts that it would miss a $53.1m bond interest payment due on Dec 1, in an effort to “maintain sufficient liquidity.”
Trump Entertainment, chaired by property magnate Donald Trump, was created out of a bankruptcy restructuring in 2005.At the same time Deutsche Bank said it would sue Mr Trump over the developer’s troubled Chicago condominium and hotel project, according to the Wall Street journal.The bank says Mr Trump personally owes $40 million after defaulting on a $640 million construction loan for Trump International Hotel & Tower under construction in the windy city.
*With agencies
Sunday, 9 November 2008
Property prices on Palm Jebel Ali fall by up to 40% - Real Estate - ArabianBusiness.com
Property prices on Palm Jebel Ali fall by up to 40% - Real Estate - ArabianBusiness.com
House prices on the Palm Jebel Ali, second largest of Nakheel’s palm-shaped islands, have fallen by as much as 40 percent in the last two months as the global financial crisis sees foreign investors move to liquidate assets in Dubai, according to three Dubai-based real estate agents.
“I never expected [prices on the Palm Jebel Ali] would have come back so quickly and by so much,” said Jeroen Van Der Geer, partner at AA Properties in Dubai. “
We are back to a level of one and a half to two years ago.”The global financial crisis has hit demand from foreign investors, which make up a large percentage of property buyers in Dubai, while tightening liquidity has made home financing more difficult, agents said.
Local mortgage providers have slashed home financing from 90 percent to as little as 60 percent in recent weeks.The price of five and six bedroom signature villas, the most expensive properties on Palm Jebel Ali, have dropped from around 16 million dirhams ($4.35 million) to 9 million dirhams since the beginning of September, according to figures from AA Properties.
But that still represents a premium of between 70 percent to 80 percent on the original launch prices.A four-bed garden home has fallen from around 7.4 million dirhams to 4.1 million dirhams, according to the figures, with the premium dropping from around 160 percent to 45 percent.The figures show a three-bed water home, the cheaper of the Palm Jebel Ali properties, is now selling for around 3.8 million dirhams, when at the beginning of September it was selling for 6.2 million dirhams, with the premium falling from about 210 percent to 90 percent.Jodie Smith, managing director of Elysian Real Estate, said garden homes were currently selling at around 4.5 million dirhams, compared to 8.6 million at the beginning of September, while water homes had come down to around 4 million dirhams from 6.5 million dirhams.
David Rowland, sales consultant at Dubai’s Smith & Ken Real Estate, said he had seen premiums on signature villas drop from 200-210 percent in July/August to 75-80 percent currently.Rowland said he had also seen garden homes selling at a 35-40 percent premium, compared to 130-160 percent in July/August.
He described the drop as “quite alarming”.
Rowland said sales had not completely dried up on the Palm Jebel Ali, but investors were having to accept premiums of around 35-40 percent to make a sale.Rowland said premiums could go as low as 20 percent before property prices rebound.“I think we will see a rebound.
Palm Jebel Ali may go down to as low as 20 percent [premium]. When it does we will see people start to come back to the market, maybe in December,” he said.
Van Der Geer said he expected demand for properties on Palm Jebel Ali return before Christmas as global financial markets stabilise and investor confidence begins to return.“It is a good opportunity for investors now and I believe the [long-term] picture is good. Prices will go back up,” he said.
Smith said she had already seen sales pick up this week, with investors taking advantage of bargain prices to snap up properties that just a few months ago were out of their price range.Nakheel said in a statement that it welcomed “all proposals and discussions by all industry-related partners aimed at maintaining a healthy market movement under the current circumstances”.“
Nakheel realises that it does not work in isolation and has a great number of partners and third parties whose interests are intertwined with its own. This approach is a very responsible approach in line with current global economic conditions,” the developer said.
House prices on the Palm Jebel Ali, second largest of Nakheel’s palm-shaped islands, have fallen by as much as 40 percent in the last two months as the global financial crisis sees foreign investors move to liquidate assets in Dubai, according to three Dubai-based real estate agents.
“I never expected [prices on the Palm Jebel Ali] would have come back so quickly and by so much,” said Jeroen Van Der Geer, partner at AA Properties in Dubai. “
We are back to a level of one and a half to two years ago.”The global financial crisis has hit demand from foreign investors, which make up a large percentage of property buyers in Dubai, while tightening liquidity has made home financing more difficult, agents said.
Local mortgage providers have slashed home financing from 90 percent to as little as 60 percent in recent weeks.The price of five and six bedroom signature villas, the most expensive properties on Palm Jebel Ali, have dropped from around 16 million dirhams ($4.35 million) to 9 million dirhams since the beginning of September, according to figures from AA Properties.
But that still represents a premium of between 70 percent to 80 percent on the original launch prices.A four-bed garden home has fallen from around 7.4 million dirhams to 4.1 million dirhams, according to the figures, with the premium dropping from around 160 percent to 45 percent.The figures show a three-bed water home, the cheaper of the Palm Jebel Ali properties, is now selling for around 3.8 million dirhams, when at the beginning of September it was selling for 6.2 million dirhams, with the premium falling from about 210 percent to 90 percent.Jodie Smith, managing director of Elysian Real Estate, said garden homes were currently selling at around 4.5 million dirhams, compared to 8.6 million at the beginning of September, while water homes had come down to around 4 million dirhams from 6.5 million dirhams.
David Rowland, sales consultant at Dubai’s Smith & Ken Real Estate, said he had seen premiums on signature villas drop from 200-210 percent in July/August to 75-80 percent currently.Rowland said he had also seen garden homes selling at a 35-40 percent premium, compared to 130-160 percent in July/August.
He described the drop as “quite alarming”.
Rowland said sales had not completely dried up on the Palm Jebel Ali, but investors were having to accept premiums of around 35-40 percent to make a sale.Rowland said premiums could go as low as 20 percent before property prices rebound.“I think we will see a rebound.
Palm Jebel Ali may go down to as low as 20 percent [premium]. When it does we will see people start to come back to the market, maybe in December,” he said.
Van Der Geer said he expected demand for properties on Palm Jebel Ali return before Christmas as global financial markets stabilise and investor confidence begins to return.“It is a good opportunity for investors now and I believe the [long-term] picture is good. Prices will go back up,” he said.
Smith said she had already seen sales pick up this week, with investors taking advantage of bargain prices to snap up properties that just a few months ago were out of their price range.Nakheel said in a statement that it welcomed “all proposals and discussions by all industry-related partners aimed at maintaining a healthy market movement under the current circumstances”.“
Nakheel realises that it does not work in isolation and has a great number of partners and third parties whose interests are intertwined with its own. This approach is a very responsible approach in line with current global economic conditions,” the developer said.
Sunday, 6 July 2008
Peter Riddoch, CEO Damac Properties, Pt 3/3 | Face to Face
Peter Riddoch, CEO Damac Properties, Pt 3/3 Face to Face
In the final part of our interview with Peter Riddoch, CEO Damac Properties, he discusses why so many real estate developments miss their deadlines, whether the Dubai property boom is a bubble waiting to burst and how the market has changed over the past few years."
In the final part of our interview with Peter Riddoch, CEO Damac Properties, he discusses why so many real estate developments miss their deadlines, whether the Dubai property boom is a bubble waiting to burst and how the market has changed over the past few years."
Peter Riddoch, CEO Damac Properties, Pt 2/3 | Face to Face
Link Video Interview :http://www.ameinfo.com/161216.html
Peter Riddoch, CEO Damac Properties
In the interview with Peter Riddoch, CEO Damac Properties, we look at its recent controversy surrounding Palm Springs on Jebel Ali and how this has affected the company's reputation, and discuss other on-going projects in Dubai
Peter Riddoch, CEO Damac Properties
In the interview with Peter Riddoch, CEO Damac Properties, we look at its recent controversy surrounding Palm Springs on Jebel Ali and how this has affected the company's reputation, and discuss other on-going projects in Dubai
Wednesday, 14 May 2008
Damac Palm Spring Scandal - Investors are still uniformed about Details
May, 12. 2008
Damac recently wrote to investors to confirm the construction of Palm Springs on the new plot allocated by Nakheel. Without doubt, RERA has rightfully flexed its muscles to ensure that the Palm Springs development has become re-instated. The Palm Springs Group sees the re-instatement as an opportunity for all involved to promote a healthy, transparent, and collaborative environment in the Dubai real estate industry.
“We are delighted that RERA, Nakheel, and Damac are now unanimous in their support of the development and we look forward to working collaboratively with Damac in the successful execution of the project.”
Furthermore, the letter to Damac has asked for details of the re-instated project, including apartment plans and construction timelines, as well as monthly updates through to project completion.
It is heartening to hear the CEO of RERA, Marwan bin Ghalita recently state that “we cannot let people promise and not deliver in Dubai” - this sends out the right signal to investors and developers alike and bodes well for the continued the growth of Dubai real estate industry.
Damac have finally sent written confirmation of the re-instatement of Palm Springs to investors. Whilst the Palm Springs Group is pleased with this development, the communication merely rubber stamps what has already been issued to the press.
The main concern now for investors is that Damac confirm in writing details of the project, such as the plan specification, build quality, start and handover dates, and whether it is in keeping with the original contract.
April 14, 2008
One investor commented, “we will be writing to Nakheel and Damac requesting them to disclose the new plot handover date and details of any planned changes as a matter of urgency” She went on to say that the Group intend to monitor developments to ensure that any changes are compliant with the contract provisions. It is possible that investors may request a meeting with Damac to get clarification of the details and to iron out any concerns.
Barring any nasty surprises contained in the ‘detail’ of the re-location of Palm Springs, it would seem that both investors and Damac will soon be able put their differences behind them and look forward to the dream that was, and hopefully is, Palm Springs. Let’s hope Nakheels’s and RERA’s role in helping to resolve the crisis serves to strengthen the reputation of Dubai real estate.
Damac recently wrote to investors to confirm the construction of Palm Springs on the new plot allocated by Nakheel. Without doubt, RERA has rightfully flexed its muscles to ensure that the Palm Springs development has become re-instated. The Palm Springs Group sees the re-instatement as an opportunity for all involved to promote a healthy, transparent, and collaborative environment in the Dubai real estate industry.
“We are delighted that RERA, Nakheel, and Damac are now unanimous in their support of the development and we look forward to working collaboratively with Damac in the successful execution of the project.”
Furthermore, the letter to Damac has asked for details of the re-instated project, including apartment plans and construction timelines, as well as monthly updates through to project completion.
It is heartening to hear the CEO of RERA, Marwan bin Ghalita recently state that “we cannot let people promise and not deliver in Dubai” - this sends out the right signal to investors and developers alike and bodes well for the continued the growth of Dubai real estate industry.
Damac have finally sent written confirmation of the re-instatement of Palm Springs to investors. Whilst the Palm Springs Group is pleased with this development, the communication merely rubber stamps what has already been issued to the press.
The main concern now for investors is that Damac confirm in writing details of the project, such as the plan specification, build quality, start and handover dates, and whether it is in keeping with the original contract.
April 14, 2008
One investor commented, “we will be writing to Nakheel and Damac requesting them to disclose the new plot handover date and details of any planned changes as a matter of urgency” She went on to say that the Group intend to monitor developments to ensure that any changes are compliant with the contract provisions. It is possible that investors may request a meeting with Damac to get clarification of the details and to iron out any concerns.
Barring any nasty surprises contained in the ‘detail’ of the re-location of Palm Springs, it would seem that both investors and Damac will soon be able put their differences behind them and look forward to the dream that was, and hopefully is, Palm Springs. Let’s hope Nakheels’s and RERA’s role in helping to resolve the crisis serves to strengthen the reputation of Dubai real estate.
Sunday, 20 April 2008
Thursday, 10 April 2008
Comments - The Damac Case Dubai - Caveat Emptor applies to homeowners only!
original published:
Caveat Emptor applies to homeowners only!
Posted by Samer Helmy on 2 April 2008 at 15:33 UAE time
caveat emptor is the latin origin of the well-known doctrine of "Buyer beware". That applied in the old days and today to homeowners selling present property to other individuals, and it was against the state of a property as it was the buyer's responsibility to inspect the unit and decide if the price is worth it, basically that there is no warranty. Developer's responsibility to actually build the unit is NEVER under caveat emptor, it is a contractual obligation to deliver that Damac in this case clearly violated and is simply counting on investors to bend over and let it slide. As a matter of fact, even in defects and quality issues, the developer (builder-seller) STILL cannot be protected by caveat Emptor as they are responsible for what they build. Today for example in the US they have what is called Implied Warranty of Fitness that developers HAVE to deliver the property free of any defects.
Greed or whatever, the investors invested and signed a contract that forces the developer to build if he can, and the fact that DAMAC did not put in the foundations for over 4 years before Nakheel reorganized the plots is not the investors fault. I say take them to court and make them pay full damages.
Regards,
Samer Helmy
Posted by Samer Helmy on 2 April 2008 at 15:33 UAE time
caveat emptor is the latin origin of the well-known doctrine of "Buyer beware". That applied in the old days and today to homeowners selling present property to other individuals, and it was against the state of a property as it was the buyer's responsibility to inspect the unit and decide if the price is worth it, basically that there is no warranty. Developer's responsibility to actually build the unit is NEVER under caveat emptor, it is a contractual obligation to deliver that Damac in this case clearly violated and is simply counting on investors to bend over and let it slide. As a matter of fact, even in defects and quality issues, the developer (builder-seller) STILL cannot be protected by caveat Emptor as they are responsible for what they build. Today for example in the US they have what is called Implied Warranty of Fitness that developers HAVE to deliver the property free of any defects.
Greed or whatever, the investors invested and signed a contract that forces the developer to build if he can, and the fact that DAMAC did not put in the foundations for over 4 years before Nakheel reorganized the plots is not the investors fault. I say take them to court and make them pay full damages.
Regards,
Samer Helmy
Palm Cancellation
Posted by Sussex Sheikh, London, UK on 2 April 2008 at 13:51 UAE time
There is an old Latin phrase 'caveat emptor'. This applies as much in Ancient Rome as it does in 21st Century Dubai.
Posted by Sussex Sheikh, London, UK on 2 April 2008 at 13:51 UAE time
There is an old Latin phrase 'caveat emptor'. This applies as much in Ancient Rome as it does in 21st Century Dubai.
Believe Nakheel
Posted by Riham, Dubai, UAE on 2 April 2008 at 10:49 UAE time
Believe Nakheel! I do realise that they are late on a few projects, but as a buyer, I'd just purchase from them or Emaar. The only two developers I have trust in and I'm saying this as an expat! Have never believed Damac and am sure it is to do with greed. All the money from the downpayments was probably "snatched" up and spent a long time ago....perhaps this is just the beginning of a complete breakdown! Raffle draws on private jets, islands, luxurious cars, etc to attract people? Good idea, sure...but for how long? I can just imagine how many projects are financed to completion in Dubai from the money received as downpayment for newly announced ones...how can you break even then or make a profit? No way....I can just imagine what kind of strict controls the Dubai Government will introduce soon for private developers. Am sure they should start off by asking them to deposit hundreds of millions of dirhams as a safety deposit to protect buyers!
Posted by Riham, Dubai, UAE on 2 April 2008 at 10:49 UAE time
Believe Nakheel! I do realise that they are late on a few projects, but as a buyer, I'd just purchase from them or Emaar. The only two developers I have trust in and I'm saying this as an expat! Have never believed Damac and am sure it is to do with greed. All the money from the downpayments was probably "snatched" up and spent a long time ago....perhaps this is just the beginning of a complete breakdown! Raffle draws on private jets, islands, luxurious cars, etc to attract people? Good idea, sure...but for how long? I can just imagine how many projects are financed to completion in Dubai from the money received as downpayment for newly announced ones...how can you break even then or make a profit? No way....I can just imagine what kind of strict controls the Dubai Government will introduce soon for private developers. Am sure they should start off by asking them to deposit hundreds of millions of dirhams as a safety deposit to protect buyers!
Palm Springs
Posted by Sanjay Amar on 2 April 2008 at 10:03 UAE time
While people talk about potential losses that may arise on account of the shelving of this project, there are damage control measures one could look at.
One idea that immediately comes to my mind is holding the subject land on which the property was to be constructed in trust for the registered buyers of the property, liquidating the land at current values and making proportionate payments.
At least the registered buyers could benefit from the appreciation of the land.
This could be a better solution than the two alternatives offered.
And, if payments have been made to Damac on percentage of completion basis, the damage would be minimised further.
Posted by Sanjay Amar on 2 April 2008 at 10:03 UAE time
While people talk about potential losses that may arise on account of the shelving of this project, there are damage control measures one could look at.
One idea that immediately comes to my mind is holding the subject land on which the property was to be constructed in trust for the registered buyers of the property, liquidating the land at current values and making proportionate payments.
At least the registered buyers could benefit from the appreciation of the land.
This could be a better solution than the two alternatives offered.
And, if payments have been made to Damac on percentage of completion basis, the damage would be minimised further.
Palm Cancellation
Posted by prahlad, Sharjah, United Arab Emirates on 2 April 2008 at 09:59 UAE time
The probem has got to have its genesis in the turmoil currently facing the construction industry which is bleeding on every front for reasons outside its control. Acute scarcity of resources - notably materials and manpower - coupled with escalation of costs to levels beyond belief on the one hand and fixed-price contracts on the other, have all had a devasting effect on the industry. Palm cancellation is, in my veiw, just tip of the ice-burg.
Posted by prahlad, Sharjah, United Arab Emirates on 2 April 2008 at 09:59 UAE time
The probem has got to have its genesis in the turmoil currently facing the construction industry which is bleeding on every front for reasons outside its control. Acute scarcity of resources - notably materials and manpower - coupled with escalation of costs to levels beyond belief on the one hand and fixed-price contracts on the other, have all had a devasting effect on the industry. Palm cancellation is, in my veiw, just tip of the ice-burg.
Palm Cancellation
Posted by Fred, Dubai, UAE on 2 April 2008 at 08:01 UAE time
I'm afraid greed sometimes backfires, for every one investor that may lose money, there are possibly 5,000 others who are waiting for the bubble to burst and help reduce the over inflated housing market and give others a chance to live and work in Dubai.
Posted by Fred, Dubai, UAE on 2 April 2008 at 08:01 UAE time
I'm afraid greed sometimes backfires, for every one investor that may lose money, there are possibly 5,000 others who are waiting for the bubble to burst and help reduce the over inflated housing market and give others a chance to live and work in Dubai.
SHOW ALL COMMENTS
Confirmation
Posted by Ilyas, London on 1 April 2008 at 20:25 UAE time
And Damac were trying to blame Nakheel all along... Simply a case of - how can we make more money - by stuffing the investors and taking their share of the rise in property prices!
Posted by Ilyas, London on 1 April 2008 at 20:25 UAE time
And Damac were trying to blame Nakheel all along... Simply a case of - how can we make more money - by stuffing the investors and taking their share of the rise in property prices!
Nakheel's Comments
Posted by Lee, Dubai, UAE on 1 April 2008 at 20:10 UAE time
This is getting interesting!! Damac says one thing and now Nakheel has come out and contradicted Damac's "story". Hmmmm? Who should we believe???
The Dubai government needs to quickly get involved or this story is soon going to become world news. If the group of UK investors proceed with taking Damac to court the UK press is going to be all over this story and it will not be good for Dubai's reputation or image.
Posted by Lee, Dubai, UAE on 1 April 2008 at 20:10 UAE time
This is getting interesting!! Damac says one thing and now Nakheel has come out and contradicted Damac's "story". Hmmmm? Who should we believe???
The Dubai government needs to quickly get involved or this story is soon going to become world news. If the group of UK investors proceed with taking Damac to court the UK press is going to be all over this story and it will not be good for Dubai's reputation or image.
Monday, 7 April 2008
David Beckham will not be your neighbour - Beckham gives in-laws $16mnDubai Palm home
original published http://www.arabianbusiness.com/property/article/515700-beckham-gives-in-laws-16mn-palm-homeArabianBusiness
Sunday, 06 April 2008by Talal Malik
England football star David Beckham has given his $16 million mansion on Dubai's Palm Jumeirah to the parents of his pop singer wife Victoria, press reports said on Sunday.
British weekly tabloid News of the World reported on Sunday that Beckham has given the keys to the waterfront villa on the palm-shape artificial island to his in-laws Tony and Jackie Adams, parents of ‘Posh' Spice Girls singer, Victoria.
"David realised he was not going to be able to spend any time in Dubai," said a source close to 32-year old Beckham, who now plays for Los Angeles football team, LA Galaxy.
"He's got his commitments in Los Angeles and it's a long trip, especially when he still has to spend a lot of time in London - so he discussed it with Victoria and decided that the Dubai place would be a really special present for her parents."
more:
http://www.arabianbusiness.com/property/article/515700-beckham-gives-in-laws-16mn-palm-home
Sunday, 06 April 2008by Talal Malik
England football star David Beckham has given his $16 million mansion on Dubai's Palm Jumeirah to the parents of his pop singer wife Victoria, press reports said on Sunday.
British weekly tabloid News of the World reported on Sunday that Beckham has given the keys to the waterfront villa on the palm-shape artificial island to his in-laws Tony and Jackie Adams, parents of ‘Posh' Spice Girls singer, Victoria.
"David realised he was not going to be able to spend any time in Dubai," said a source close to 32-year old Beckham, who now plays for Los Angeles football team, LA Galaxy.
"He's got his commitments in Los Angeles and it's a long trip, especially when he still has to spend a lot of time in London - so he discussed it with Victoria and decided that the Dubai place would be a really special present for her parents."
more:
http://www.arabianbusiness.com/property/article/515700-beckham-gives-in-laws-16mn-palm-home
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