Buyers of units in the Sun and Sky towers on Abu Dhabi's Reem Island are starting to apply for interest payments on their deposits as the developer continues to delay handing over apartments.
Several owners have a clause in their contracts with the developer, Sorouh, calling for payments if the project missed its completion date or "extended the completion date", agents say. Sun and Sky was originally scheduled for completion in November 2009.
Philipp Haenle, who bought an apartment in the Sky Tower in 2008, has already applied for the interest payment on the Dh700,000 (US$190,580) he has paid towards buying his property. The "extended completion date" expired last May, he says.
Based on the language in the contract, Mr Haenle calculates he is owed about Dh7,000. A Sorouh sales representative encouraged him to apply for the interest payment, he said.
"It is to be seen whether they will honour it, but I believe they will," Mr Haenle said. Sorouh declined to comment on the payment.
It is unclear how many buyers in the Sun and Sky towers were offered the interest clause. Other owners contacted by The National said they did not have such a provision in their contracts.
The interest clause is "very, very unusual, especially in this market", said Billy Rautenbach, the managing director of The Property Store.
One local agent familiar with the sales agreements, who declined to be identified, said the interest clause varied in contracts and usually called for payments only 18 months after the scheduled completion date.
Sun and Sky marks the first large-scale freehold development open to non-UAE residents to own property on Reem Island. Sky is one of the tallest towers in Abu Dhabi at 74 storeys; Sun is 65 storeys. The two towers include a total of 1,150 apartments.
Primary construction on the two towers was completed in July and owners of more than 1,000 units have gone through their pre-handover inspection. But Sorouh still has not started turning over apartments.
The developer has blamed the delays on licensing and off-site infrastructure issues. The company has not announced when the project will open.
The delays have frustrated owners. Many of them took out financing to buy apartments and are eager to generate revenue by renting them.
"You can't do anything about it," said Ahmed Nawab, the chief executive of Trust City Real Estate, who bought several apartments in the project. "It's a bit of a nightmare."
Sorouh said it expected to begin handovers in the first quarter of this year, but declined to offer any details. Owners say they have heard nothing official from the developer about the cause of the delays. One owner was told there was a problem with fire alarms and the civil defence wiring systems in the buildings, which could not be confirmed.
"I know nothing is done until the keys are in hand," said Kashif Mohammad Ali, who bought an apartment in the Sun tower.
To help woo and keep buyers in the downturn, the developer began offering a variety of deals last year, including mortgages with a 4.99 per cent interest rate for the first two years. "They were 100 per cent offering different terms" to buyers, Ms Rautenbach said. "They wanted to be flexible."
Last year, Sorouh management acknowledged it had launched an aggressive "default avoidance" programme to avoid the cancellation issues that have plagued many developments in the UAE. The developer expects about 5 to 8 per cent of buyers to cancel, its chief operating officer Gurjit Singh said last year. "There has been a minimal incidents of buyers trying to back out," Mr Singh said at the time.
Last week, Alembic HC Securities cut the target price for Sorouh's stock, citing the possibility of "higher impairments" because of the delays in handing over Sun and Sky units.
kbrass@thenational.ae
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Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
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Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
MATCH INFO
Tottenham Hotspur 3 (Son 1', Kane 8' & 16') West Ham United 3 (Balbuena 82', Sanchez og 85', Lanzini 90' 4)
Man of the match Harry Kane
Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
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The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
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Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
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- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
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- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
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- Keyhole surgery under general anaesthetic
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44/876
(Interscope)
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
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- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
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Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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● Company: Bidzi
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● Funding size: Bootstrapped
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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29 or 30 days – the number of iftar services held during the holy month
50 staff members required to prepare an iftar
200 to 350 the number of people served iftar nightly
160 litres of the traditional Ramadan drink, jalab, is served in total
500 litres of soup is served during the holy month
200 kilograms of meat is used for various dishes
350 kilograms of onion is used in dishes
5 minutes – the average time that staff have to eat
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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