Palm Springs Investors Group

DAMAC Properties is the property arm of DAMAC Holding, a global business conglomerate with over 6000 employees in 18 countries. Established in 1996 and headquartered in Dubai, the total value of DAMAC Properties’ portfolio currently stands at US$4 billion. Furthermore, DAMAC Properties recently won three prestigious awards at the CNBC Arabian Property Awards 2006. Property developer bagged the best development award for ‘Oceanscape’, best architecture award for ‘Ocean Heights 2′ and the best website award for the company’s website – www.damacproperties.com. In December 2006, the company also won the IREF ME award for the best residential development in the UAE. In 2005, the company was honored with three prestigious Bentley International Awards in the categories of – Best UAE Development for Marina Terrace, Best Architecture for Ocean Heights-1 and Best Developer website at a ceremony in London

Back in 2002/2003 Damac announced an exciting project called Palm Springs to be developed at The Palm, Jebel Ali. Damac described the project as

Enviably located in a prime location on the Palm Jebel Ali’s Crescent, Palm Springs is the apex of aspirational living. Having commissioned award-winning architects, we have created an architectural tour de force. Palm Springs offer uninterrupted sea and water views.Situated elegantly between the Two world class hotels, our building, which is managed by a prestigious international hotel chain, boasts a wealth of superlative amenities. A unique and exclusive residential property on Jebel Ali, Palm Springs is the Zenith of desire.

Naturally there were plenty of investors who were happy to invest in this dream project, especially as the project was by a well know player.
Fast forward to 2008 and meet the smiling face of Hussain Sajwani, Chairman and Founder of DAMAC Holding. Ask him about the Palm Springs project and he will refer you to this letter recently issued by his company, which tells customers

“We have now been advised officially by the Master Developer that the Palm Jebel Ali Master Development has been re-designed and that the Plot will not be delivered. As a result of this official confirmation, we now regret to advise you that the Palm Springs project has been cancelled.“

And what of compensating customers who are not to blame for this ‘cancellation’? If history is anything to go by, then Damac has a track record of trying to betray customers when it issued a letter in September 2006 offering 10% interest on monies invested if they were willing to pull out of the project. In their recent letter they have offered either 15% discount if investing in another Damac development, or 6% interest on money paid. So much for Damac being a leading real estate player in Dubai, and all the awards being heaped on them. The message, loud and clear from Sajwani would appear to be “no sir, we are not interested in honouring contracts given to customers who invested in Palm Springs in good faith, after all we are so big that we not give a damn about those puny people called investors”.

(more to follow)