Investors in Ivory Tower project still receive cancellation threats

Dubai: Investors in Sokook's much-maligned Ivory Tower project continue to be threatened with cancellation of their contracts, according to investors.

One investor said that although Dubai's Real Estate Regulatory Authority (Rera) is backing investors, Saudi developer Sokook is still sending 14-day notices instructing investors to pay the remaining 90 per cent on their units or the contracts will be cancelled. The letters are signed by an unknown person at Sokook.

Another investor told Gulf News that the Ivory Tower action group, which is now more than 40 people strong, visited the Land Department last week to seek guidance. Hundreds of investors bought off-plan units in the 20-storey tower since it was launched in 2005.

Last February the development began to sour, with Sokook telling investors to stop paying their monthly installments due to a dispute with Tecom, the master developer of the International Media Production Zone.

Construction was supposed to begin in Nov-ember, three years behind schedule.

Sokook then began cancelling contracts, accusing investors of not paying the installments.

Investors hope that a couple of new laws that are being implemented by the Dubai Land Department will help keep developers in line.

Emad Eldin Farouq, senior legal adviser in the Land Department, told investors that law No 13 of 2008 aims to regulate off-plan sales and make registration of units with the Land Department compulsory.

"Any sale or other disposition that transfers or restricts title shall be void if not registered in the interim real estate register," the new law stipulates.

Another law that is due to be passed in the coming days will regulate payments, ensuring installments are kept in line with the progress of construction, or lack of it in the Sokook case.

Mohammad Bin Ghalib, chief executive officer of Sokook, was unavailable for comment when contacted by Gulf News yesterday.

Investors in Ivory Tower claim Sokook is ignoring all requests to reinstate the contracts and believe that taking Sokook to court is "inevitable".