Mizin To Link Payments With Building ProgressThursday, May 28, 2009
Mizin, the real estate development arm of Tatweer, is in talks with Dubai's Real Estate Regulatory Authority (Rera) to link investor payments to construction milestones. Investors in the Remraan project voiced concerns that they continue to pay installments despite slow progress in construction. We are currently liaising with Rera to endorse our payment plans which are linked to construction milestones," said a spokesperson for Mizin. The scheme is expected to give investors a sigh of relief as some of them have already paid as much as 40 per cent of the property's purchase price. Early this year, regulators came out with a framework that disallows developers from collecting more than 30 per cent of the purchase price of a unit unless construction milestones are incorporated into the payment scheme. Regulations require developers to fully own the land where the property is to be built, possess the title deeds and have completed 20 per cent of construction before they can sell units off-plan.
As new requirements and laws have been introduced, we have adjusted our way of doing business in conjunction with Rera.The payments collected to date are within the law and construction has progressed," the company spokesperson said. Marwan Bin Galita, Chief Executive of Rera, said, "All projects should get approved payment plans. Over 200 investors in the Remraam project following other investor groups banded together to voice their issues. Confusion arose when a Mizin staff allegedly told some investors that phase three of the Remraan project was scrapped and a compensation scheme was being worked out. Mizin however, said that the project is going ahead as planned. All phases of Remraan are continuing. We are committed to fulfiling all of our commitments. We are working with a number of investors to help them through the current economic difficulties in cases of non-payment to Mizin," the spokesperson added. While Amlak and Tamweel had originally offered to finance the project, investors were told the financiers have stopped paying Mizin. Tamweel and Amlak are customers and we are not in a position to release information regarding our customers," said the spokesperson. The Remraan project in Dubailand is valued at around Dh200 billion.Source: [Gulf News]