Developer demanding £££££££s

[manchester123]

So I would agree that they should be able to build at around AED500per sqft. Tis bull, all the excuses they are coming up with. They are only interested in making a profit. They claim they need AED10mill to build. Surely a company like MiNC, with all the assets and business they have, have AED10mill in the petty cash fund!!!!!
STINKS!

[georgihh]

Originally Posted by manchester123

So I would agree that they should be able to build at around AED500per sqft. Tis bull, all the excuses they are coming up with. They are only interested in making a profit. They claim they need AED10mill to build. Surely a company like MiNC, with all the assets and business they have, have AED10mill in the petty cash fund!!!!!
STINKS!

You guys have signed a contract for a certain amount of money.
If they cannot fulfill the contract they have to give you the money back plus interest.
If they have no money they go to jail – simple as that
Dubai is a place with no crime – but what is this?
This is just as bad as robber someone and the low protects you

[propertyconsultant]

well, i think Minc should give several options to their clients. Reevaluating the cost at 1000Dhs is an option. Now it does not mean that buyers who would like a refund should not be granted, however under the new law they could end up with only 70% of their initial investments with no apartment and a thin chance to be able to buy something decent at 1000Dhs. But yeah! CASH is king these days so ?????????????????

propertyconsutlant
dubaipropertycrisis dot blogspot dot com

[georgihh]

Originally Posted by propertyconsultant

well, i think Minc should give several options to their clients. Reevaluating the cost at 1000Dhs is an option. Now it does not mean that buyers who would like a refund should not be granted, however under the new law they could end up with only 70% of their initial investments with no apartment and a thin chance to be able to buy something decent at 1000Dhs. But yeah! CASH is king these days so ?????????????????

propertyconsutlant
dubaipropertycrisis dot blogspot dot com

Why 70% must be 100%.
We are not defaulters or whatever they are changing the contract.
The problem is the time and the time is money (well not anymore).
At the moment nobody will buy for 1000DHS per sqft off plan - very very expensive.
Those guys (developers, consultants) must come down to the earth and forget the easy cash

[manchester123]

Thats the devious part. They are saying to buyers - if you cant pay "do you wish to CANCEL"? Instead of giving clients a refund, they will cancel and return 70%! I told them theat if AED1000 is under market value, then they can BUY mine back of me and resell! They said they would nt be buying back and definitely no compensation or interest!

They claim to have no money for this project - yet they have issued a revised letter today and have sent the letter by courier also!!! How stupid!

The letter:

Following our communication dated 10 November 08, with regards to updates on construction of Prodigy 1, we have received varied feedback from our clients and subsequently reexamined our proposal.

To strike a favourable balance between the project’s financial requirements and our clients’ feelings, we would now request you to pay 125,500 (over contract price). Without sufficient uptake of our proposal, MiNC will not be able to commence construction and the project would be on hold indefinitely until alternative project financing can be secured.

For those clients who agree and pay additional funds, and the development does not move forward, we undertake to return funds immediately. We will conclude the assessment by 27 Nov, 2009. We also undertake that there would be no further cash calls on this project, except for the installments as stipulated previously.

We appreciate that requests for additional funds, over and above the agreed contract price, is undesirable but MiNC sees this as the only viable solution to getting the building constructed and delivered. Our key objective here is ‘delivery’ and we are determined to overcome any obstacles in the most expedient manner. We trust you understand the difficulty of the current predicament that the project finds itself in, and hope you will support us in our sincere endeavor.
Yours sincerely,


Haroon Mahmood
Chief Executive Officer, Dubai
--------------------

[laguna33p]

Originally Posted by propertyconsultant

well, i think Minc should give several options to their clients. Reevaluating the cost at 1000Dhs is an option. Now it does not mean that buyers who would like a refund should not be granted, however under the new law they could end up with only 70% of their initial investments with no apartment and a thin chance to be able to buy something decent at 1000Dhs. But yeah! CASH is king these days so ?????????????????

propertyconsutlant
dubaipropertycrisis dot blogspot dot com

As already mentioned, the investor is not cancelling the contract, so why should he or she only get 70%. We are being forced into this situation, we would rather have our apartment built at the original price.

[daflanger]

Hi again!!! I have asked around alot of people in the industry and they all told me Minc is actually a good developer. They just got themselves stuck in this situation due to the many reasons stated before

Offcourse their way of approaching to solve the problem is wrong and they know it as well but they are trying everything cause they know since Tamweel pulled the plug, the closest time for them to get any kind of funding could be a year or more which will evidently stall the project. As they have the contractor already on site, they are trying everything.

I spoke to them again and they told me they know there is no way the investors will agree to what they are requesting but they are trying everything. As for the money on the other project well they cannot us any more from any other project cause each project has it's own Escrow Account and own expenses. This includes Prodigy 2 to 7 and others

Minc is NOT going to run away but they are in a tough situation. They want to try everything and that includes asking for a higher price. Offcourse this is wrong 100% but if the increase can be justified in any other way in the long term, maybe that can work!

I am in Prodigy 5 and I am directly affected by Prodigy 1. Do you know why? Cause Minc signed ONE CONTRACT with a contractor to build all 7 Prodigy Buildings. So they are all linked

I am against any increase unless it works in my favor in the future. I don't know how but they must come up with something. A way that if we pay extra, then we get that money back one way or another in the future

I dunno.... I might be messing up in what I am saying but I am thinking rather than cursing the developer cause for once this developer is being brave enough to open all doors and channels.

Other developers remain silent, they tell you everything is fine... and then.... Bammmm... they escape, disappear or declare bankruptcy!

[TommyC]

Originally Posted by daflanger

Hi again!!! I have asked around alot of people in the industry and they all told me Minc is actually a good developer. They just got themselves stuck in this situation due to the many reasons stated before

Offcourse their way of approaching to solve the problem is wrong and they know it as well but they are trying everything cause they know since Tamweel pulled the plug, the closest time for them to get any kind of funding could be a year or more which will evidently stall the project. As they have the contractor already on site, they are trying everything.

I spoke to them again and they told me they know there is no way the investors will agree to what they are requesting but they are trying everything. As for the money on the other project well they cannot us any more from any other project cause each project has it's own Escrow Account and own expenses. This includes Prodigy 2 to 7 and others

Minc is NOT going to run away but they are in a tough situation. They want to try everything and that includes asking for a higher price. Offcourse this is wrong 100% but if the increase can be justified in any other way in the long term, maybe that can work!

I am in Prodigy 5 and I am directly affected by Prodigy 1. Do you know why? Cause Minc signed ONE CONTRACT with a contractor to build all 7 Prodigy Buildings. So they are all linked

I am against any increase unless it works in my favor in the future. I don't know how but they must come up with something. A way that if we pay extra, then we get that money back one way or another in the future

I dunno.... I might be messing up in what I am saying but I am thinking rather than cursing the developer cause for once this developer is being brave enough to open all doors and channels.

Other developers remain silent, they tell you everything is fine... and then.... Bammmm... they escape, disappear or declare bankruptcy!

I'm not involved in this project but I agree that it is a nice change having a developer coming forward and at least starting a discussion. If every developer could do that now instead of sneaking around to finally just release a bomb of nothingness. You got a dialogue started anyway, keep it going and good luck!

[manchester123]

Instead of demanding more cash - they could have opened dialogue first. They're are a couple of solutions available to them but the key here is trust - can we trust them with our money????

The future payments we make, need to be linked to the construction. Thats the only way I will be happy with sending them more of my money.

[laguna33p]

Minc are asking for thousands of pounds, not hundreds. This is on top of the increase few months ago due to revised size changes. If Minc are having difficulties in the world economic crisis, what about the isolated investor - they are in the same boat.