The Developer has refunded the investors all their investments despite the property downfall at the Dubai Palm Springs.
As the project was held due the economic crash Damac has agreed with the investors to refund on their lost investment in full. Sources confirm that, in the month of January this year 21 investors were paid and 29 more were paid this month. As per the resources only four investors are left to be paid yet and the delay is due to incomplete paperwork or there is no response from investors when contacted by the lawyers.
According to the lawyers and Fareya Azfar, the head of arbitration at The Legal Group, the investors are happy since their amount has been settled in full. And she has confirmed that, this is the first development company in the UAE that had given refunded 100 percent to the investors without any legal constraints. This act of being prompt and loyal has given Damac Properties good reputation in the market not just by paying off the investors but by sorting out the matter at safer level of understanding.
During the Dubai upward growth Palm Spring project was announced by Damac. The project was located on Nakheel’s Palm Jabel Ali Island standing 25-storey tall right in the beachfront, but due to the economic downfall the project was halted.
There were proposals by the developer to cancel the project in 2008 but investors were persistent to continuing after series of meetings in Dubai and the UK. Damac has tried to reinstate the project by negotiation with Master Developer Nakheel but the same did not proceed further. Investors who had waited for the construction to start, were offered 70 percent refund immediately, or 25 percent initially followed by a further 25 percent annually for the next three years which was rejected by the investors.