Damac's buyback plan angers investors

Investors in Damac's Palm Springs project on Palm Jebel Ali are furious at being 'bought off' by Damac due to project alteration.

Damac is now trying to 'buy back' its Palm Springs plot on Palm Jebel Ali five years after its launch.

Damac cannot go ahead and build the development without incurring a significant loss as the master-developer plans have changed.

Hussain Sajwani, chairman of Damac Holding said in a statement, "Damac Dubai Property has been advised that the master development of Palm Jebel Ali has been redesigned and the Palm Springs plot will not be delivered. Due to redevelopment of theprojects, the building forming the Palm Springs development cannot be placed on the re-allocated plot and, as an output, the Palm Springs project has been annulled.

"In view of this, Damac Dubai Properties will offer customers an opportunity to realize the investment made in Palm Springs and transfer the monies to any other project in the Damac Dubai Properties portfolio at a discounted price 15 per cent below current market value. As an alternative, Damac would reimbruse monies paid with interest."

However, by investors words, Damac is only offering six percent per annum on the sum invested.