Any DAMAC Lake View Owners out there?

[zal_kindi]

I was wondering what everyone's feelings are about the seemingly endless delays and what compensation DAMAC will offer for the delays. Has anyone gone inside Lake View to see the finishing?

 

[zal_kindi]

Now I'm getting worried

It seems that I'm the only one who bought in Lake View!

 

[Rammah]

It seems that I'm the only one who bought in Lake View!

How much would you sell it at?
That's the best way to get comforted when you get worried.

Anyway, most pple won't tell you what they invested in just because you asked a general Q.
Clarify what you want from them, and if they have a common interest in responding, they would.

Good luck,

Rammah

 

[zal_kindi]

How much would you sell it at?
That's the best way to get comforted when you get worried.

Anyway, most pple won't tell you what they invested in just because you asked a general Q.
Clarify what you want from them, and if they have a common interest in responding, they would.

Good luck,

Rammah

Rammah,

Thanks for the response. I was specific in asking:

1. If DAMAC will compensate for the delays?
2. If anyone has managed to go inside the building to see the finishing since the bathrooms, kitchens, doors, cabinets, etc have been fitted to some of the apartments at least.

I am not asking how much the apartment is. In fact, I didn't even mention how many BR mine is.

Regards..

 

[mpat]

Hi there

1) If there is any mention in the contract given to you about the compensation on delay, they shall give it. Or else just forget about any compensation. ( In my contract , with anothe rdeveloper , its said that if its delayed by more than 6 months you can get all your money back.but thats not compensation.)

2)generally DAMAC is a quality developer, no need to see . the things are supposed to be high standards. I have seen the building from outside and it shows a good execution of work.
All the best to you.

 

[zal_kindi]

Hi there

1) If there is any mention in the contract given to you about the compensation on delay, they shall give it. Or else just forget about any compensation. ( In my contract , with anothe rdeveloper , its said that if its delayed by more than 6 months you can get all your money back.but thats not compensation.)

2)generally DAMAC is a quality developer, no need to see . the things are supposed to be high standards. I have seen the building from outside and it shows a good execution of work.
All the best to you.

Thanks for the response. There is a compensation clause in the contract. It says that the seller will pay LIBOR but I'm not how that will be actually calculated. I guess we'll see in the summer when we get possession; if there are no more delays!

I was wondering about the finish because there is no contractual obligation for DAMAC to deliver the materials they show in their show apartments, and with the rising construction costs; perhaps they'll be tempted to reduce cost by dropping the standard of materials they use.

 

[elvis2465]

Lake View concerns

Have a look at the Damac website it has images of a fairly hideous bathroom. The blue water splash tiles look disgusting, cheap and nasty.
The compensation (is in my opinion) deliberately difficult to work out and trying to get a straight answer from "customer service" is impossible. Anyone with a degree in advanced mathematics would struggle but suffice to say the "compensation" will be a token and nothing more. The last payment on handover should be waved - the project is over 18 months late and the lost revenue in rental income is way more than the last payment anyway.
So therefore by my reckoning Damac will be ringing up any day now to find out how to pay me my extra compensation but as Lake Terrace which is supposedly 6 months ahead of lake view looks miles away from handover I won't hold my breath.
It is a disgrace that they are allowed to continue advertising and doing business when they cant complete what they have on the go already.

 

[Roshan]

Rammah,

Thanks for the response. I was specific in asking:

1. If DAMAC will compensate for the delays?
2. If anyone has managed to go inside the building to see the finishing since the bathrooms, kitchens, doors, cabinets, etc have been fitted to some of the apartments at least.

I am not asking how much the apartment is. In fact, I didn't even mention how many BR mine is.

Regards..

Usually developers have a 6 month time after the promised date till which no interest is paid. After the six months, then the payment will be according to the prevailing interest rates.

There could be a temptation from the developer to compromise on quality, but DAMAC doing that....well I seriously don't know.

Regards

Roshan

 

[Rammah]

Our one compensation is that we appear to have something physical already and hopefully will get delivery before the whole sorry stack of cards comes tumbling down!!

How many new offices has opened worldwide this year alone?
How much have they invested in Egypt alone over the last 12 month?

Get me those answers, and then we'll talk.
If you don't know the answers, then please stop throwing rumours. Many people's life are depending on either their investments with DAMAC or their employment. It's not fair for you to put all those pple at an unease situation just because you're unaware of facts.

Rammah

 

[Gashead]

Hi there

1) If there is any mention in the contract given to you about the compensation on delay, they shall give it. Or else just forget about any compensation. ( In my contract , with anothe rdeveloper , its said that if its delayed by more than 6 months you can get all your money back.but thats not compensation.)

All the best to you.

Most of them say that but that would only be the original cost excluding fees. The developer then pockets the capital increase themselves. Some deal.

There will be zero compensation. Any problems with that then give Sheikh Mo a call.

 

[fws]

Damac u-turn on Palm Springs project
by Amy Glass on Thursday, 10 April 2008

Damac Properties appears poised to formally announce the reversal of its decision to axe the Palm Springs project, according to investors.

Investors have said they stand to lose million of dirhams after the Dubai-based developer cancelled the 25-storey beachfront development last month on the Palm Jebel Ali, offering compensation below current market value.

The saga has been widely reported in the international media, creating bad publicity for Damac in key markets it is looking to attract investment from, such as the UK.

Investors said they received calls earlier this week from Damac informing them the Palm Springs project is to be re-instated, according to a statement on the website of a Palm Springs investors group.

The project will be located on the new plot provided by master developer Nakheel, with some possible changes to building plans, the statement says.

Niall McLoughlin, senior vice president of corporate communications at Damac, said in a statement emailed to ArabianBusiness.com on Thursday that the developer would shortly announce a decision on the project.

“We have been in contact with our customers in relation to Palm Springs and will be making a formal statement in due course. As soon as I am in a position to comment, we will contact you directly,” McLoughlin said, without giving further details.

Damac had said the cancellation of the project five years after launch was due to "redevelopment of the plots", stating that the development "cannot be situated on the re-allocated plot".

However, this explanation was brought into question when Palm Jebel Ali master developer Nakheel said it had informed investors of changes to the masterplan over 10 months ago.

A group of more than 60 UK-based investors are threatening to take Damac to court unless the developer reverses its decision and continues with construction.

The group, which last month stormed the London launch of Damac's Jumeirah Village South project, has given the developer until April 11 to change its mind or face legal action.

Damac also changed its mind about the cancellation of its Haz Tower in Business Bay on Wednesday, after investors complained about its plans to pull the project, UAE daily Gulf News reported.

The Haz Tower was launched in July with a value of around 240 million dirhams. The tower is now worth an estimated 660 million dirhams, the newspaper said.

Reason for axing Palm Springs questioned

Palm Jebel Ali master developer Nakheel 'very surprised' at Damac project cancellation.

http://www.arabianbusiness.com/51621...-project?ln=en

 

[fws]

Damac's Business Bay tower back on track
By Suzanne Fenton, Staff Reporter
Published: April 10, 2008, 00:28


Dubai: Property developer Damac, which had tried to cancel Haz Tower in Business Bay, yesterday said that the project is back on track following complaints by investors who had pumped in Dh60 million since July 2007.

Around 10 exasperated investors yesterday met officials at the Land Department to complain against the company.

However, Niall McLoughlin, senior vice-president of corporate communications at Damac, said that the Haz Tower is "definitely going ahead".

The issue crops up just a week after Damac came under fire for cancelling the Palm Springs project on the Palm Jebel Ali.

The Haz Tower was launched July 8, 2007, with a project value of around Dh240 million. The tower is now worth an estimated Dh660 million.

Damac, the largest private sector developer in the UAE, has launched 80 projects but handed over only two so far.

 

[Gashead]

How many new offices has opened worldwide this year alone?
How much have they invested in Egypt alone over the last 12 month?

Get me those answers, and then we'll talk.
If you don't know the answers, then please stop throwing rumours. Many people's life are depending on either their investments with DAMAC or their employment. It's not fair for you to put all those pple at an unease situation just because you're unaware of facts.

Rammah

What is the significance of the number of offices DAMAC has opened? They are a young company and time will tell.

 

[zal_kindi]

How many new offices has opened worldwide this year alone?
How much have they invested in Egypt alone over the last 12 month?

Get me those answers, and then we'll talk.
If you don't know the answers, then please stop throwing rumours. Many people's life are depending on either their investments with DAMAC or their employment. It's not fair for you to put all those pple at an unease situation just because you're unaware of facts.

Rammah

Rammah,

With all due respect, the point of the post is exactly about the rights and lives of people. Its about DAMAC's "investors" who have their savings locked up with an unreliable and increasingly dodgy "developer" who can't seem to keep their own word. Have you spoken to one of their so-called customer service reps and seen how clueless they are? One of them once told me that delays are because DAMAC is like a "child" who needs time to "learn" !!. How is that for professionalism. This is not a rumor. It happened with me personally. Many of us have had just under AED 1,000,000 with DAMAC and having to live with 18 months delay and no end in sight. I am talking about people's lives and investments so please show some consideration to us; not just DAMAC. How much have people lost in terms of opportunity cost? Please tell us the facts. How many projects have DAMAC delivered so far and out of how many in total. What is the delay per project. You talk about how much DAMAC have invested in the past 12 months. That's the point, are they "investing" their own money? I really hope DAMAC will keep their last word which is completion in "Sumer 2008". Regards.

 

[Rammah]

What is the significance of the number of offices DAMAC has opened? They are a young company and time will tell.

Young company? 26 years... that's old enough for me.

Opening new offices worldwide = extremely huge expansion and expenditure. Why are they spending all that money if their intention was not to complete projects?

Rammah

 

[Rammah]

Rammah,

I can see you are doing your best to defend your company.

However there are strong indications that investors money is being used for other purposes other than the intended building of their apartments.

Indication 1: DAMAC requested a dispensation from the Escrow laws in Dubai. This would not have been necessary if investors' money was still allocated to the appropriate project. Please feel free to provide a good explanation as to why this law should not apply to DAMAC.

*ANSWER 1: The ESCROW law applies for DAMAC and I have the bank details if you wanted to invest and check for your own peace of mind. What is the source of your news/rumours?
In any case, even if they requested a dispensation, don't we need to know on what ground they have done so before we start speculating and judging whether their request is fair or not?

Indication 2: Very difficult to get a mortgage on a DAMAC developments from reputable international banks. If you could list some contacts that will provide mortgages that would help your cause.

**ANSWER 2: Abu Dhabi Commercial Bank, Arab Bank, Amlak, Commercial Bank international, National Bank of Abu Dhabi, Union National Bank, Amlak, Badr Al-Islami, Mashreq Bank.
Any more need to be said? I gave you more than some, so I have "rested" my case and not only "helped" it.
On top of it, if you wish to apply for a mortgage, I'll be more than happy to assist you.

Indication 3: How much has DAMAC invested in Egypt this year? Where did this money come from if not from investors on DAMACs incomplete projects? The two completed developments cannot have generated sufficient profit surely to provide all these funds?

***ANSWER 3: DAMAC Group has the following businesses: catering [delivering 250,000 meals DAILY across the Middle East], Insurance [Gulf Air is a client], Manufacturing [ie: Tiles for Grohe and Villeroy Bosh ]; Stocks; Education [University in Oman]; etc.....
So where did all the money come from? Pick and choose.

Indication 4: Classic pyramid structure growing rapidly and requiring new investor entrants to fuel the growth. The real test is when the new investors dry up which is likely to have been brought forward by the credit crunch. Can DAMAC survive without huge growth? This has not yet been tested.

****ANSWER 4: What pyramid structure are you talking about?
You suddenly became an analyst and economist and worried about DAMAC's survival without growth? I'm impressed, but rest assured that DAMAC's growth is happening every single millisecond. It's already an Empire of its own!

 

[Rammah]

Rammah,

With all due respect, the point of the post is exactly about the rights and lives of people. Its about DAMAC's "investors" who have their savings locked up with an unreliable and increasingly dodgy "developer" who can't seem to keep their own word. Have you spoken to one of their so-called customer service reps and seen how clueless they are? One of them once told me that delays are because DAMAC is like a "child" who needs time to "learn" !!. How is that for professionalism. This is not a rumor. It happened with me personally. Many of us have had just under AED 1,000,000 with DAMAC and having to live with 18 months delay and no end in sight. I am talking about people's lives and investments so please show some consideration to us; not just DAMAC. How much have people lost in terms of opportunity cost? Please tell us the facts. How many projects have DAMAC delivered so far and out of how many in total. What is the delay per project. You talk about how much DAMAC have invested in the past 12 months. That's the point, are they "investing" their own money? I really hope DAMAC will keep their last word which is completion in "Sumer 2008". Regards.

Give me a break!

1- Why haven't those people sold their investments with massive profits yet?

2- I would like to challenge you to give me the name of a SINGLE project that was submitted without delays in Dubai.

3- Yes DAMAC have invested their own money. Sorry to disappoint you, but that's a fact... and if you wanna argue with it, then go and complain to BMW for using the money you gave them when you signed the contract on your car purchase!

4- How much did you pay for your flat, and how much is it worth now?
Answer this and let everyone see how grateful you are for the company that made you a fortune. I also hope you get your flat in summer 2008.

Rammah

 

[zal_kindi]

Give me a break!

1- Why haven't those people sold their investments with massive profits yet?

2- I would like to challenge you to give me the name of a SINGLE project that was submitted without delays in Dubai.

3- Yes DAMAC have invested their own money. Sorry to disappoint you, but that's a fact... and if you wanna argue with it, then go and complain to BMW for using the money you gave them when you signed the contract on your car purchase!

4- How much did you pay for your flat, and how much is it worth now?
Answer this and let everyone see how grateful you are for the company that made you a fortune. I also hope you get your flat in summer 2008.

Rammah

Rammah,

My aim was not to bad-mouth DAMAC in any way. In fact, I stand to gain a lot if what you are arguing is correct and I am totally wrong and stand to loose a lot if they have a bad reputation. I wish I'm wrong. Answers to your point below.

1. My flat has been on the market for 2 years with very little interest initially. All I got was regular calls asking whether it was still available and if the price changed. Recently I started getting what sounded like more serious inquiries offering something slightly below the Better Homes price index the but I'm not sure how serious the buyer was.

2. Granted that most projects are delayed, however 18 months to date without a clear end in sight is still high even by Dubai standards. Lake View started when there was almost nothing else around it and now the JLT area is full of completed or near-completed projects. Friends of mine bought in other JLT projects a year after me and re already taking possession of their property.

3. My point was that DAMAC are taking installments on regular basis which they should be passing on to the contractors so it is our money they are using and not theirs which they recover at then end + profit.

4. I am not going to divulge how much I paid in AED but I have paid 85% of the purchase price which is money locked up which could have been earning rent had they delivered on or even remotely near the agreed completion time. That's lost opportunity. I disagree with your statement about being "grateful" to DAMAC for making me a fortune. I paid my hard earned money which I entrusted them with.

I'm curious why you are defending DAMAC! Are you affiliated with them?

I just hope that they deliver as per their latest letter; which is summer 2008. September will make them 21 months late and that's very late even by Dubai standards.

Regards..

 

[elvis2465]

I totally agree

Damac have currently lost me in excess of 150,000dhs in lost revenue. Thankfully my family rent a villa but if we had intended to move into Lake View on original, promised completion date where would that have left us? If the studio eventually does turn a profit this will not be due to the kindness or brilliance of Damac but simply inflation which is the reason why most people invest in the first place. Anyone defending this company has NOT been subjected to outragous delays, lack of communication and speaking to "customer service" (think banging your head against a brick wall with rubbish :elevator music added). Coincidently does anyone else notice that the PR staff seems to change ever 33 seconds - I attribute this to people actually having morals.
Reading some threads I have heard Damac compared to a child who is still learning!! I teach 10 year olds and if they were performing as Damac is their report would look like this:
Baby Damac
Young Damac is having a number of problems at school. He/she never finishes anything started and promises so much but consistently fails to deliver. If any work is completed it is handed in late and I'm informed not done to the standard expected of a 10 year old. He/she is a bit of a loner who doesn't like talking to others and is very secretive. Maths is a weakness and many of the most simple calculations just don't add up.
He/she does shine in politics as how anyone has the gall to advertise new projects and "investment opportunities" when they should be plowing funds into uncompleted projects is beyond me.

Rammah,

My aim was not to bad-mouth DAMAC in any way. In fact, I stand to gain a lot if what you are arguing is correct and I am totally wrong and stand to loose a lot if they have a bad reputation. I wish I'm wrong. Answers to your point below.

1. My flat has been on the market for 2 years with very little interest initially. All I got was regular calls asking whether it was still available and if the price changed. Recently I started getting what sounded like more serious inquiries offering something slightly below the Better Homes price index the but I'm not sure how serious the buyer was.

2. Granted that most projects are delayed, however 18 months to date without a clear end in sight is still high even by Dubai standards. Lake View started when there was almost nothing else around it and now the JLT area is full of completed or near-completed projects. Friends of mine bought in other JLT projects a year after me and re already taking possession of their property.

3. My point was that DAMAC are taking installments on regular basis which they should be passing on to the contractors so it is our money they are using and not theirs which they recover at then end + profit.

4. I am not going to divulge how much I paid in AED but I have paid 85% of the purchase price which is money locked up which could have been earning rent had they delivered on or even remotely near the agreed completion time. That's lost opportunity. I disagree with your statement about being "grateful" to DAMAC for making me a fortune. I paid my hard earned money which I entrusted them with.

I'm curious why you are defending DAMAC! Are you affiliated with them?

I just hope that they deliver as per their latest letter; which is summer 2008. September will make them 21 months late and that's very late even by Dubai standards.

Regards..

 

[Rammah]

Damac have currently lost me in excess of 150,000dhs in lost revenue. Thankfully my family rent a villa but if we had intended to move into Lake View on original, promised completion date where would that have left us? If the studio eventually does turn a profit this will not be due to the kindness or brilliance of Damac but simply inflation which is the reason why most people invest in the first place. Anyone defending this company has NOT been subjected to outragous delays, lack of communication and speaking to "customer service" (think banging your head against a brick wall with rubbish :elevator music added). Coincidently does anyone else notice that the PR staff seems to change ever 33 seconds - I attribute this to people actually having morals.
Reading some threads I have heard Damac compared to a child who is still learning!! I teach 10 year olds and if they were performing as Damac is their report would look like this:
Baby Damac
Young Damac is having a number of problems at school. He/she never finishes anything started and promises so much but consistently fails to deliver. If any work is completed it is handed in late and I'm informed not done to the standard expected of a 10 year old. He/she is a bit of a loner who doesn't like talking to others and is very secretive. Maths is a weakness and many of the most simple calculations just don't add up.
He/she does shine in politics as how anyone has the gall to advertise new projects and "investment opportunities" when they should be plowing funds into uncompleted projects is beyond me.

What PR staff are you talking about?

inflation huh? how weird... i never knew inflation was segregative in choosing its plots

the rest of your post was beyond my understanding of sense of humor and sarcasm.

Rammah