The Palms Springs Group Hopeful of Resolution « Palm Springs Investors Group

The Palms Springs Group Hopeful of Resolution

7 April 2008 at 6:27 pm | In Damac, Jebel Ali, Palm, breach of contract | 4 Comments

If Damac was hoping that delaying their response to investors demand for justice would cause the Palm Spring Investors Group to fragment, then the news for Damac is not very good. Inside sources report that the Group has, if anything, become even more united and resolute in their aim to ensure Damac does not short-change investors. It is clear that the Group is not ready to accept anything less than that Damac

reverse the decision to cancel Palm Springs and proceed with construction of the project, or

provide a like-for-like apartment at same cost and terms and conditions on a new Damac development at Palm Jebel Ali, or

provide financial compensation at current market rates for Dubai Waterfront/Palm Jebel Ali

The overwhelming majority of the Palm Springs Investors Group is of the opinion that Damac is procrastinating unnecessarily, and the legal action should proceed immediately after the deadline of 11 April 2008 as planned. One of the Group’s co-ordinators said “Funding to commence legal proceedings has been place for some time, and we do not intend to let up with our efforts to seek a fair and proper outcome using all means at our disposal.”

Barring a decisive intervention by RERA or Sheikh Mohammed, the campaign by The Palm Springs Group is set to intensify if Damac continues to remain silent – media reports saying that “Damac was not available for comment” will simply no longer do. We can only repeat that resolving this crisis is in the interest of all concerned, investors, Damac, the Dubai real estate industry, and the Dubai authorities.

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I applaud all members of the Palm Spring Investors Group for their firm stance on this scandal. There are signs that there is a satisfactory outcome on the horizon, acceptable to all incolved. If the situation is not resolved soon, then the actions of DAMAC will have a very damaging effect on the real estate industry in Dubai.

After all, Sheikh Mohammed is on record as saying “Many leaders promise, we deliver.“ Is it too much to ask that business in Dubai also live up to this ideal?

I am hoping that RERA is taking a keen interest in matters and will swing into action to protect investors and the reputation of Dubai. If RERA decide just to sit back and watch events unfold then people will be questioning exactly what they stand for.

Ultimately, how the Dubai authorities decide to deal with the current DAMAC scandal will be a reflection on the values which Sheikh Mohammed wishes to uphold.

Comment by Palm Springs Investor — 9 April 2008 #

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As someone who has lived in Dubai for 3 years, I would not expect that moral obligations of what is right will ever trump a quick profit.

The dangers for investors are still quite real regardless of this single project’s outcome. Many developers are faced with bankruptcy if they *do* go ahead with projects that they sold off cheaply a few years ago:
http://www.arabianbusiness.com/516690-shaky-foundations

So it is probably the canary in the coalmine – even if it just went through a queasy patch and recovered, you’d still be wise to get to the surface sharpish.

Comment by Flackie — 17 April 2008 #

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The Palms Springs Group Hopeful of Resolution

Comment by hana — 27 April 2008 #

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I have been interviewed in Europe to work for Damac in Dubai…is that advisable anyone there being able to give me feed back about the company, any staff member?
cheers

Comment by luis — 6 June 2008 #

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