Business | Property
Ajman's Crown Residencia stalled
Investors will have to wait at least a year and a half before they can move into their units.
- By Suzanne Fenton, Staff Reporter
- Published: 22:41 September 24, 2009
Dubai: Investors in the Crown Residencia project in Emirates City, Ajman will have to wait at least a year and a half before they can move in.
Abu Bakr Abuzeid, finance manager of the project's developer, Al Batha Real Estate, said that many people have not paid installments and so the project has stalled.
"We are waiting for many people to pay us. They are delaying payments. We need to swap our clients to Dubai and we have offered them projects in Dubai," Abuzeid said.
Crown Residencia does not have an escrow account, according to the Ajman Real Estate Regulatory Agency (Arra). One of the partners of Al Batha Real Estate is in jail for bounced cheques, Abuzeid said.
Worried investors went to meet Abuzeid last week where they were told that their investments could be shifted to projects in Dubai under a new partnership with Al Masah International Development Company.
Under this potential solution, investors' money would be put into an escrow account and registered with Dubai's Real Estate Regulatory Authority.
Abuzeid is adamant that Crown Residencia is not cancelled. "It is not cancelled. If investors don't accept this offer, then we will try another solution. We just need to pay the balance of the land and some other fees, around Dh1.5 million. Plus we need maybe Dh1 million to pay for construction in advance," Abuzeid said.
However, when investors spoke to Al Masah International they found that under this plan, they would lose 70 per cent of their investment with only 30 per cent being transferred.
"Soccer Tower in Sports City is Dh930 per square foot if I use the Crown Residencia money. The true price of that apartment is Dh800 per square foot if I pay from my account. The difference is Dh130 per square foot," said one investor.
A source at Al Masah International confirmed to Gulf News that clients from Al Batha will be able to move investments to their projects in Dubai.
The cheapest of Al Masah's projects is around Dh750 per square foot, so investors will likely have to pay more as units in Ajman are generally cheaper.
Al Batha Real Estate has no links with Al Batha Group in Sharjah.
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