Nakheel Diversionary Tactics

[Rita Kane]

 

Nakheel moves to help cash-strapped buyers

07 March 2009 Nakheel will offer payment solutions to its customers who are unable to meet their installment obligations, including offering them free services of a mortgage brokerage company. Joe Barr, Nakheel's Managing Director for Development Projects, told Emirates Business that the move is part of several measures that the master developer is taking to mitigate the effects of the global financial crisis on its business. This includes adjusting its short-term business plans to accommodate the current financial environment. "We have the responsibility to do so, and our short-term business model is aligned to meet market demand," Barr said. Customers unable to make their installment payments for Nakheel projects would be offered several solutions, Barr said. "We are working closely with investors to find solutions to help them fulfil their financial commitments under the current difficult financial situation. Nakheel is currently offering interested customers the free services of GLN a mortgage brokerage company to help them find financial solutions. We are confident that whatever solutions we propose will take into consideration the welfare of all parties concerned," he added. Barr acknowledged that sales have eased somewhat due to the global banking liquidity issue. "What we are seeing is a shift in the type of investors. Today's investors are more focused on long-term investment opportunities. We will continue to work on our projects to meet this demand. "Nakheel is acting responsibly and prudently by reassessing our immediate business objectives to accommodate the current economic climate and meet demand. However, we fully expect banks to spring back into business in 2009, so our long-term business plans will remain unchanged," he said. On the direct impact the crisis has had on Nakheel's projects under development, Barr said: "Many of our projects are in the construction stages and are planned over the next 10 to 20 years. "In keeping with our business objective of matching supply and demand in the most effective way, we have announced the merger of a number of Nakheel's business units, which will better address the changing market conditions. This action will not affect ongoing work at our projects." Asked about the status of Nakheel's proposed 1km tower, which when completed would overtake the Burj Dubai to become the world's tallest building, Barr said: "Further work on the foundations of Nakheel Harbour & Tower will commence in 12 months." Nakheel's handovers for 2009 Jumeirah Heights: Handover of first apartments will commence in July 2009 Jumeirah Park: Seventy per cent of the project sold, with 900 villas to be handed over by the end of 2009. The number of three,four and five-bedroom villas in this development totals 2,764  Jumeirah Village: December 2008 saw the handover of the first 300 villas. By the end of this year, more than 2,000 villas will be handed over. Seven families have already moved in Jumeirah Islands Mansions: 24 mansions to be handed over mid 2009 590 berths at Anchor Marina in 2009 Waterfront - Badrah homes: More than 1,000 homes will be delivered at Badrah Waterfront this year Marina Residences: More than 900 homes at Marina Residences, Palm Jumeirah, will be handed over this year. Handover will commence April onwards By Sean Davidson © Emirates Business 24/7 2009

Article originally published by Emirates Business 24/7 07-Mar-09

 

 

 

 

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Re: Nakheel's Diversionary Tactics by Blog Glogg - 2 days ago
Nakheels contract calls for retaining 25% of the contractual value. Further I would think the way this is being played out with the lack of information & transparency the investors have taken a flight and will most likely never show up again..... [Report Abuse | Email to a Friend | Reply to this Comment]

 

 

Nakheel's Diversionary Tactics by Joseph Dominic - 2 days ago
I hope the developer refunds the money by keeping 20 % of the paid amount. it will suit both the developer and the buyer.because the developer is not going to meet the promised delivery dates and the recovery in the real estate market is a long way away [Report Abuse | Email to a Friend | Reply to this Comment]

 

 

Nakheel's Diversionary Tactics by Blog Glogg - 3 days ago
I have approached the broker nominated by Nakheel and their feedback was even me earning a salary of USD 100K and more cannot get a loan for a property I have paid off 25% already. The only bank willing to offer a loan was Standard Chartered which was offering 50% on reevaluated prices - expect a downward valuation of 30 - 40%. Nakheel refused to acknowledge a drop in price until 3 weeks back.

I have been writing to Nakheel persistently on possible solutions and development updates with NIL participation from their end.

Rumor goes they want the defaulters list to increase - easy to cancel the project and retain all the paid amounts from the investors. [Report Abuse | Email to a Friend | Reply to this Comment]