Business | Property
Al Mashraf renders old contracts void
Investors in the Casa del Mar development in Dubai Marina have been told by the new owner, Al Mashraf Bank, that once completed, the project will be sold to new investors, rending the current contracts void.
- By Suzanne Fenton, Staff Reporter
- Published: 23:22 August 11, 2008
Dubai: Investors in the Casa del Mar development in Dubai Marina have been told by the new owner, Al Mashraf Bank, that once completed, the project will be sold to new investors, rending the current contracts void.
The original owner of the development, Obaid Bin Jarsh, marketed Casa del Mar through Deyaar. He then sold it to Al Mashraf "due to liquidity problems", in a letter to investors dated July 11, 2007.
Bin Jarsh had also promised to return 10 per cent of all investments.
However, with one investor paying Dh720 per square foot for six units three years ago, 10 per cent is not an adequate refund.
It is not clear how many investors will be affected by this latest turn of events.
In April this year, the director-general of the Dubai Land Department wrote in a letter to one investor, "Bin Jarsh's offer to return the original amount is unacceptable."
The letter also said that Bin Jarsh's act of selling the project before any settlement had been agreed was a "violation of Dubai property regulations".
However, despite this letter, nothing has since been done to solve the situation.
"Nobody listens to us investors. If you're lucky they build it," said one investor to Gulf News.
As the 30-storey project nears completion, investors are worried that Al Mashraf Bank will sell it on, disregarding previous contracts.
Galal Al Dimeery, real estate manager at Al Mashraf, said once Casa del Mar is complete, it will be launched again under a new name and then sold on to new investors.
Al Dimeery also said that when Al Mashraf bought the project, it was "empty".
Dubai's Real Estate Regulatory Authority's (Rera) plans to create a new property court cannot come quickly enough, as more and more developments lack the transparency and confidence of more mature markets.
Rera is overwhelmed with complaints from investors ranging from issues such as project delays to money disputes.
"Rera is not a court. It's just a way to regulate the market," Marwan Bin Galita, chief executive of Rera said.
Both Obaid Bin Jarsh and officials at Deyaar were unavailable for comment.
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