Is Damac having problems?

[mambo]

I received an email from an associate in Dubai who tells me that Damac are in trouble and may be taken over by a government developer. Added to this the fact that my mortgage broker is unable to obtain mortgages for Damac properties and that I also hear Damac have had to return funds to investors in two projects due to problems with clients obtaining mortgages as well as huge delays in delivery of projects and it all seems to add up.

I don't like rumour or heresay. Does anybody have any firm or hard facts?

Thanks

 

[kokni001]

Hello Mambo,

I have not heard about DAMAC being taken over by a government developer , clients monies being returned, or people not obtaining mortgages on DAMAC properties. However I do know they have big problems with completion of their projects in Dubai. For example their Lake View project is almost 2 years late. Lots of people have asked DAMAC for compensation for the loss of rental income arising out of these delays. Can anyone add anything to my comments?

kokni001

 

[mambo]

Thanks for the reply.

Somebody has just told me that the rumour is Damac may be taken over by DUBAI PROPERTIES...

 

[mambo]

found this:

DAMAC’s attempt to ‘buy-back’ its Palm Springs project, Palm Jebel Ali 5 years after its launch will surely go down as one of DUBAI’s greatest disgraces. While Damac is not owned by the Dubai government, it presents itself around the world as ‘Dubai’. What has happened here is that Damac sold out the project 5 years ago, and cannot now build it without incurring a significant loss. It is attempting to buy out all of its customers by offering to pay them a measly 6% per annum on the sum invested.

 

[DubaiDMC]

found this:

DAMAC’s attempt to ‘buy-back’ its Palm Springs project, Palm Jebel Ali 5 years after its launch will surely go down as one of DUBAI’s greatest disgraces. While Damac is not owned by the Dubai government, it presents itself around the world as ‘Dubai’. What has happened here is that Damac sold out the project 5 years ago, and cannot now build it without incurring a significant loss. It is attempting to buy out all of its customers by offering to pay them a measly 6% per annum on the sum invested.

please get correct information. Damac's project on the Palm Jebel Ali is going ahead.

 

[Roshan]

please get correct information. Damac's project on the Palm Jebel Ali is going ahead.

The project is going ahead but the design has changed to adapt to the new plot which has been released.

Damac blundered by calling the project off. Instead of all the cars and islands they promoted, they should have held on to the Palm J.Ali development instead of calling it off. That would have been the best promotion of all.

Damac is too big to close down and been taken over by another company.

Regards

Roshan

 

[georgihh]

I don’t think Damac are having problems I think you guys will be having a massive problem once you get your money with no return.
Buy in IC and sleep nicely

 

[michelle6]

Hello Mambo,

I have not heard about DAMAC being taken over by a government developer , clients monies being returned, or people not obtaining mortgages on DAMAC properties. However I do know they have big problems with completion of their projects in Dubai. For example their Lake View project is almost 2 years late. Lots of people have asked DAMAC for compensation for the loss of rental income arising out of these delays. Can anyone add anything to my comments?

kokni001

hAS anyone any news when completion should be expected on Lake View?

Iv seen inside lake terrace and the standards are shocking!

 

[Peter Choo]

Was told that Damac is heading for great financial difficulty. Is it true?

Was told that do not intend to pay any supplier on worldwide scale exp on communication, advertising.

 

[davidps]

please get correct information. Damac's project on the Palm Jebel Ali is going ahead.

It looks highly unlikely, now that Palm Jebel Ali is on hold. Well, not officially, but everyone from the 'inside' seems to think so. There's a great thread on Skyscrapercity about it. I don't know whether this new 20$ billion bond will help, but even if they were to resume work full force, there's no chance that place will see any residents in the next 5 years. Just look at the recent photos - it is, by and large, a pile of sand with almost no work going on and no signs of any kind of infrastructure.