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Tag Archives: Tarek Kandil

Who’s already the biggest real estate criminal in the

UAE over the year 2009?

Number 1

maktoum-hasher-juma-maktoum-afp-al-fajer-ebony-ivory-20091

Maktoum Hasher Juma Al Maktoum,
President AL Fajer Properties Dubai

Number 2

Lohmann BrandMaster

Robin Lohmann

CEO Alternative Capital Investement – ACI Dubai

Number 3

Malikagezicht

Malika Karoum / Define / ACI

or are all three ready to be fried on the BBQ?

Inshalaaaaaaa


Please, place your reaction/vote by a comment.

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Define Properties executive detained

by Bradley Hope and Hani M Bathish

Last Updated: April 08. 2009 10:09PM UAE / April 8. 2009 6:09PM GMT DUBAI //

A principal shareholder of Define Properties has been detained by Dubai authorities on provisional charges of fraud, prosecutors said today.

malika-smilegrootThe arrest of the executive comes in the middle of negotiations with Alternative Capital Invest Real Estate (ACI), a Germany-based property developer operating in Dubai, to take over some of Define’s assets. The major shareholder was arrested in mid-March after complaints were filed by an investor in Define Properties, said Tarek Daoud, the administration director of the company. He said the amount being sought by the investor was close to Dh30 million (US$8.1m).

“He is arrested and in Bur Dubai police station,” Mr Daoud said. A lawyer for the detained executive did not return messages today. Robin Lohmann, the managing director of ACI, said the arrest would not disrupt his company’s negotiations with Define Properties. “It is not affecting our deal,” Mr Lohmann said. “We are negotiating over a different part of the company that is unrelated to this case.”

Earlier this year, ACI took over the Niki Lauda Twin Towers in Business Bay from Define Properties after construction stalled and the future of the project appeared to be in jeopardy. ACI had marketed and sold units in the building last year, but Define Properties was still responsible for building it. Mr Lohmann said today he was also interested in taking over the Define Essence tower located in the Waterfront, a huge development near Palm Jebel Ali, and another plot of land in the same area.

The claim made against the executive was under negotiation by lawyers from the two sides and it was likely to be “resolved shortly”, he said. Since the property market slowed last year, developers have delayed or cancelled several projects and many buyers have defaulted on payments. The result has been a rise in disputes over property. Many of these have been civil cases filed in the Property Court, but some have been filed through the police as criminal charges.

The Dubai authorities have also been investigating widespread suspected fraud in property finance during which dozens of senior executives have been detained. There was no indication that the Define Properties case was related to this wider investigation.

successful_start

Define Properties was established in June last year, just as the five-year property boom was beginning to subside. The company bought 12 plots of land at the Waterfront from Nakheel and pledged to spend Dh8 billion on residential and commercial projects throughout Dubai, according to company statements at the time. But as the market began to slow, the company faced difficulty with financing its operations and continuing construction.

Mr Lohmann said that some areas of Dubai, such as the Waterfront, would have to cut back or delay projects indefinitely because of the global financial crisis. A Nakheel official has previously said that parts of the Waterfront development were being delayed, but the project as a whole was going forward. bhope@thenational.ae hbathish@thenational.ae