Red Residence

[Sophielsie]

Hi - I don't appear to have one - and have requested one from MED

 

[jaimeybug]

Hi there

Thank you for your post. It has just occurred to us that no mention has been made of any furniture yet each apartment is to be fully furnished? I am going to drop MED an e mail asking about this. Will post again.

Jaimeybug

 

[jaimeybug]

Just wanted to say that last week we wrote to MED regarding the various issues about which we are concerned and to date, as usual, we have received no acknowledgement or answers. Has anyone else written and received any meaningful response from MED. In previous correspondence when we addressed the fact that Schedule D was missing from our contract we were told it will be available on handover. This is not acceptable as it is an integral part of our Sales Purchase Agreement and in several places the Agreement is subject to Schedule so we therefore have an incomplete contract. We have once again tried to get a copy without success. If anyone on the forum has a copy of Schedule, can you please post.

 

[Sophielsie]

Schedule 8 Communication from MED

Read from the bottom of this thread - to the top which is my reply.

From: Lawrence Clark

Iona,

The only reason we proceeded with the purchase of Red Residence was due to the Rental Program.

You have no right of termination for the reason you have stated below within the Agreement, and you are unable to claim force majeur as such conditions of rental are not beyond your reasonable control, as the intention was to always provide a hotel apartment.

If you attempt to terminate the Rental Agreement / Addendum, we will seek to terminate the Sales and Purchase Agreement on the basis that the decision to enter into the Sales and Purchase Agreement was made substantially on the basis of the Rental Agreement / Addendum being inforce.

We will seek return of all monies paid and accrued interest, since 2006, legal fees, loss of revenue income, etc, etc.

Regards

Lawrence Clark
Technology Industry Leader
Retail, Media & Gaming Customers

From: Ioana Nica
Sent: 01 December 2014 10:25
To: Lawrence Clark
Cc: med Coordinator
Subject: RE: Schedule D - Lease Agreement - for Apartment RR602

Dear Mr Clark

Thank you for your email

We are in the process of being evaluated by a third party agent for the hotel apartment license as per the rules and regulation of Department of Tourism and Commerce Marketing, if we will get the approval we will be able to go ahead with the rental program.

If the building will not be in their requirement and new standards we are afraid we might terminate the rental agreement/ addendum.

The schedule you are requesting is not with CRM as of now, as explained above if will get approved will be calculated after.

If you have questions please feel free to email us.

From: Lawrence Clark
Sent: Tuesday, November 25, 2014 6:40 PM
To: Customer Care
Subject: Schedule D - Lease Agreement - for Apartment RR602

Hi – Schedule D in the Sales and Purchase Agreement refers to a Lease - which means the lease agreement that is to be
executed by the Parties pursuant to Clause 6 in the form attached as Schedule D.

I don’t appear to have this Schedule – please can you provide a copy of it.

Regards

Lawrence Clark
Technology Industry Leader
Retail, Media & Gaming Customers

 

[jaimeybug]

In reply to your post we will be responding in a similar manner. The Addendum is half the contract and the basis on which everybody purchased and it cannot possibly be cancelled by one party, there being of course two parties to the contract. The last thing we want is a normal residential apartment in Dubai and it is most certainly not what we purchased. Will post again.
Many thanks
Jaimeybug

 

[Sophielsie]

Renegading on Rental Agreement

Here is latest - we maybe need to escalate and get some publicity - maybe the to- Sheikh Tarek M. Binladen Chairman, Middle East Development.

Also interesting commentary on anticipated service charge.

"maintenance fee ( normal fee is 15 dhs per net area ( AED 11500) , hotel apartment will be higher needs to be calculated however will be more than 15,000-20,000)"

and if the Rental Agreement is not executed - it wont be furnished either !

Obligations of MED

MED shall:
1 cause the Rental Program to be operated at a level of service and quality similar to the standards of
a 5 Star Hotel;
2 Provide the initial furnishings for the unit in accordance with standards of a 5 Star Hotel;
3 Perform its duties and responsibilities under this Agreement diligently and faithfully;
4 Perform such services as are in MED’s reasonable opinion necessary for the efficient supervision,
direction and control of the operation of the Rental Program; and
5 Use reasonable endeavours to optimize the yield of the Rental Program.

From: Lawrence Clark
Sent: 01 December 2014 14:17
To: Ioana Nica
Cc: shadha.zawaw tlg.ae; med Coordinator; Customer Care; Kader Maideen; Sanjay Pradhan; Reinalyn Quijano; sanjay khazanchi; Roda F. Dolorosa; Penelope Karele; Sanjay Pradhan;
Subject: RE: Schedule D - Lease Agreement - for Apartment RR602

Dear Ioana,
The agreement which MED has signed, provides:

1) Guaranteed Rental for 3 years at 8%
2) Profit sharing for Year 3-20
3) Free usage of the Apartment for 30 days per year.

If MED are unable to materially fulfil your obligations under the agreement we both signed up to - then you need to email me saying you are unable to fulfill your obligations.

Please copy my Lawyer Shadha Zawaw at TLG.ae (shadha.zawaw tlg.ae),copied on this email, and someone in your organisation whom she is able to communicate with regarding this matter.

Regards

Lawrence Clark
Technology Industry Leader
Retail, Media & Gaming Customers

Tel/Fax: +44(0) 118 924 7103

From: Ioana Nica
Sent: 01 December 2014 12:29
To: Lawrence Clark
Cc: med Coordinator
Subject: RE: Schedule D - Lease Agreement - for Apartment RR602

Believe me the investment is worth it, the area is growing up and will be the main sport attraction
In 2019 the Asian World cup as per the news will be held in UAE. So most of the games will be played in Dubai Sport City, major developments had announced to start within next year, as per the local newspapers. In front of Red Residence there is a stadium which as per below link will be constructed soon, as well as the Arena Mall.

I know you bought as an investment to , and is still an investment and for the price you have is a good one.
Thanks and best regards



Ioana Nica
CRM Manager

106, 1st Floor
Building No: 4,
Emaar square,
PO Box 9323
Dubai, UAE
Tel: +971 4 423 0966
Fax: +971 4 423 0927
Email:

From: Lawrence Clark
Sent: Monday, December 01, 2014 3:43 PM
To: Ioana Nica
Cc: med Coordinator
Subject: RE: Schedule D - Lease Agreement - for Apartment RR602

Ioana.
I only bought this apartment because of the Rental Agreement (8% Guarantee for the first 3 years, 30 days free use per year; profit share for years to 4-20).
I would never of bought it otherwise.
If any of these elements are now being taken out – the investment isn’t viable.
Regards

Lawrence Clark
Technology Industry Leader
Retail, Media & Gaming Customers

Tel/Fax: +44(0) 118 924 7103

From: Ioana Nica
Sent: 01 December 2014 11:10
To: Lawrence Clark
Cc: med Coordinator
Subject: RE: Schedule D - Lease Agreement - for Apartment RR602

Dear Mr Clark
If there is no license what you mean there is not right? We are obeying the law of the country and the rules and the regulation imposed by a government.
Rules are not done by MED.
It is purely your choice to seek all you have mentioned below, I can say that will go through arbitration as well once that complete we will go to court as well; and will take two to three years , where any income on both side will be blocked, and the apartment will not be used by anyone as will be in litigation.
Your rental agreement stipulate clearly that you will have 8% rental guarantee from the purchase price for the first three years , where you will pay all the fees for the maintenance.
Lets calculate
8% out of 760,000 ( O.P) equals with 60,800 yearly where you will be obliged to pay maintenance fee ( normal fee is 15 dhs per net area ( AED 11500) , hotel apartment will be higher needs to be calculated however will be more than 15,000-20,000)
The annual rent as per today’s market price of a one bedroom in Dubai sport city is 70,000 to 80,000 AED and I am sure Red Residence will be higher in the rent as it has a bus stop in the ground floor.

Thanks and best regards

Ioana Nica
CRM Manager

106, 1st Floor
Building No: 4,
Emaar square,
PO Box 9323
Dubai, UAE
Tel: +971 4 423 0966
Fax: +971 4 423 0927

 

[jaimeybug]

Just to let you know we have written to MED in a similar vein and are still awaiting a response. Some months ago we wrote to Sheik bin Laden signed for delivery but the envelope was returned to us as not being signed for!!! Will post again when we hear back.

 

[jaimeybug]

We have still not heard back from MED regarding whether or not they have been given the Licence to run the building as a hotel. Do any other members have any news on this?

 

[jaimeybug]

Sophielsie - We asked MED to advise categorically if Red Residence will be run as a hotel apartment building. It seems they are avoiding this question as we are not getting any straight answers. From past information on another blog (which does not seem to exist anymore),it would appear that the majority of the apartments were sold as normal residential apartments and there is only a few in the "rental programme" so we actually know it is not going to be run as a hotel. We have been in touch with selling agents on this point and they are confirming the same. Obviously if this is the case then the Addendum to the Sales Purchase Agreement has been breached and it would be impossible for MED to adhere to it now. There would be too few apartments in the programme to actually share a profit from and bearing in mind there are no hotel facilities. Have you had any confirmation back as to the status of the use that they are licensed for. Without MED categorically saying they are essentially breaching our Agreements it is difficult to be able to proceed in any way with legal action. We see you have an attorney. Is she the right type of attorney to take up the case. We could possibly use the same attorney. We have noticed that on the selling agents sites they are stating a completion date of February 2015??? We are wondering how you are being told you will still get 8% We cannot understand how they propose to do that. They cannot cherry pick out parts of the Addendum and cancel their other obligations. If we were to agree to complete without the Rental Programme and manage to let it for AED 61 000 or more (which equals 8%) then there is no 8% to receive because you have that in the rent and in the contract the apartment has to be made available for rent and only if that is not achieved is it made up to the 8%. Without the building being run as a hotel we will not complete on the purchase and then will have to look at our options. Let us have your news.

 

[jaimeybug]

Sophielsie and others with Rental Programme Contracts.

Just received a Construction Update on Red Residence which I am sure all have received. Interestingly the Certificate from the civil Defence refers to the building as a "Residential Building" No mention of a hotel which pretty much now confirms our thinking that it has not been built as a hotel. Also no mention of awaiting a tourism Licence from the authorities It seems to us that once the recession hit the decision was made not to proceed as a hotel but rather as a residential building without advising the investors who just carried on handing over the stage payments oblivious to what they were doing. Trying to get an answer to the straight question "is Red Residence a hotel apartment building or not" we are faced with reluctance from MED to confirm this as they know they have deceived us. MED have stated that the majority of the apartments in the building do not have Rental Programme contracts which proves the point above and their intentions. It seems the only way forward now may be legal action.
Sophielse please let me have your thoughts. Maybe we can join forces.
Jaimeybug

 

[Sophielsie]

Hiya - thanks for your message - I have asked them to confirm that they will not be materially fulfilling their obligations under the agreement they have signed with us. Until they do this - I don't think we should initiate legal proceedings - if they attempt to complete without the agreement we have signed being executed - we can terminate under breach of contract. My lawyers are confident we can sue them - albeit it may take some time. It has taken 9 years so far ! Rgds Lawrence

 

[jaimeybug]

Hi

Thank you for your reply. Our thinking is the same so we shall just sit it out until we are approached to complete and take it from there. will keep posting if there is any news.
Jaimeybug

 

[jaimeybug]

Mulberry House

Kindly post the number of clients you have specifically invested in Red Residence.

Jaimeybug

 

[a18lor]

Anyone had recent contact from MED regarding Red Residence? It appears this building is taking an eternity to complete. We also note there is no longer any mention of the rental agreement/5 star hotel standard in any of the MED blurb!!!

 

[a18lor]

If MED does not fulfil their part of the contract, as set out in the rental agreement, we believe there will be significant benefit from investors pooling resources and challenging them collectively. We found a site that indicated completion for Red Residence is May (2015) so time is of the essence.

Is there a way we can share contact details and trace other investors who are party to the rental agreement?

 

[a18lor]

Rental Contract

If, as it seems almost certain, MED attempts to cancel the 'rental contract' then it seems to us there would be significant benefits if we pooled our resources and challenged them collectively.

Is there a way we can share our contact details and trace other investors in red Residence who also have the 'rental agreement' as part of the purchase contract.

 

[jaimeybug]

We could most definitely pool our resources to challenge MED. However until such time as MED advise they are categorically dropping the Rental Contract we are unable to challenge them. This will undoubtedly happen when they request the final payment.

 

[jaimeybug]

I did come across information that suggested the completion is now June 2015. Look back through all the posts in answer to your question.

 

[a18lor]

Hi again and thanks for your reply. We agree it is not possible to take any action until MED indicate an intention to cancel the rental contract. However it would be prudent for us to be prepared for what appears to be inevitable in view of the limited information from MED. There is no doubt we would not have become in evolved with Red residence had it not been for the rental contract and their undertaking that Red Residence would be to the standard of a 5 star hotel.
Bearing in mind the period over which they have held a substantial amount of our money there should be no excuse for MED not to complete the building to the full specification promised and as set out in the contracts. Then of course there is the issue of the 'penalty clause' for failing to deliver within the timescale. If MED can be required to comply with that penalty clause it would mean a significant payment to each investor.
Still not sure how we can exchange full contact details and also trace other investors who may also be affected.
Kind regards
A&L

 

[jaimeybug]

We suspect that MED will try to wriggle out of the penalties for the delay by blaming it on the Master Developer but we know they changed the contractor at least twice during the build which caused delays. It appears that MED have taken stage payments since inception of the build in the knowledge that they were not building a 5 star apartment hotel but simply a block of residential apartments without divulging this information to us, the investors. From the information available to us, there is nothing in the building to conform with a 5 star hotel and obviously, therefore, it will not be possible for the rental agreement to be fulfilled. If the Rental Agreement is null and void so is the Sales Purchase Agreement as, although drawn up separately, they are in effect one contract. If you go to page 3, read the post from Sophielsie and take note of all the details therein which will answer your question without me spelling it out for obvious reasons. Can you post again as soon as you have done this so that I know you have picked up what I am saying.
Regards
Jaimeybug