Realty 'swap' deals gain ground
Dubai Holding's real estate companies move to offer a "swap" option for investors of Sama Dubai and Mizin has so far received a positive response, a top company executive told Emirates Business.
"We have been working for the past six to seven months on allowing investors to swap their units from Sama Dubai and Mizin projects to our finished units such as Executive Towers or Jumeirah Beach Residence," said Hashim Al Dabal, Executive Chairman of Dubai Properties Group.
"We are co-operating with our investors and dealing with each case on an individual basis. The offer has been well-received by our investors."
In February, Dubai Holding said it was consolidating the back-office operations of its property companies by merging the administrative and back-office functions of Dubai Properties, Sama Dubai and Mizin, a subsidiary of Tatweer, to form closer working relationships by realising efficiencies through the consolidation. Later in June, Emaar Properties and Dubai Holding said they were in advanced talks over a potential merger of the publicly-listed firm with developers Dubai Properties, Sama Dubai and Tatweer.
Dabal said the real estate companies of Dubai Holding are leveraging each other's strength to the benefit of the parent company. "We have even offered partial options for investors. This means that people who have units in Lagoons can hold on to a few units there and can take some of our finished units."
When asked how the property prices were determined during a switch over, Dabal said that there was a price list set on the holding level, which was used at the time of negotiation. "The scheme is optional for investors," he added.
Bobby Sarkar, Vice-President, Equity Research, Al Mal Capital, said: "Consolidation helps the developer and ensures that the investors do not default down the road."
Ajman property buyers seek cover for PDCS
Investors in the Paradise Lakes Towers project at Emirates City, Ajman, want their payment plans rescheduled because of delays and the fear that post-dated cheques (PDCs) that were to be banked only on completion will be cashed in.
The project was due to be delivered in December 2008 but master developer R-Holding is now working towards a 2009 deadline.
Sweet Homes, an exclusive selling and marketing consultants, has already cashed cheques dated December 2008 that were conditional on completion, an investor told Emirates Business on condition of anonymity.<>br
Omar Al Barguthi, Director-General of the Ajman Real Estate Regulatory Agency, said work on the project was continuing though it was slightly behind schedule.
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