Innovation Demand Letter
If you have purchased a property in one of the projects taken over by Innovation SEZ Developers you will likely have been in receipt of an Innovation Demand Letter or as they have described it a ‘Capital Call Notice’. It appears quite a few of these were sent out in February and March 2016. For an example of how these letters look scroll to the bottom of this post. Innovation took over development of the Eagle Heights, Bermuda Views and Profile Residence developments in Dubai. Capital Call Notices for all of these developments are in the pipeline if they’ve not already been sent. This particular post is about Eagle Heights, but it holds equally for both Bermuda Views and Profile Residence.
Eagle Heights was widely promoted in the UK and Ireland in the mid-nougties so there are a lot of owners in the British Isles. Quite a few of these either don’t wish to, or are not in a position to, complete at this time. If you are in this position, don’t worry. Here at SellDubai.co.uk we can find a buyer for your property, even though it is not yet complete. The Eagle Heights development is, according to Innovation SEZ, 67.21% complete allowing the developer demand payment up to 77.21% of the total payment due.
Innovation SEZ demands payment of the funds within 30 days of receipt of the letter. Quite a few owners have commented that this is a bit of a stretch when you consider that the properties were, in most cases, purchased between 2005 and 2008. Ten years or more later the new developer now decides that further payment is due in less than 1 month.
The Innovation demand letter has led to a number of clients looking for an option to get out of their contracts with Innovation SEZ developers in Dubai. The main words of advice if you are in such a position is ‘don’t panic’. There is an answer to this problem.
Many purchasers have written to the developer looking for refunds of the money already outlaid in order to get out of the contract. This has never happened. Innovation has never returned money to anybody. The only way to get a return from this investment at this stage is to sell on the contract as it stands or pay for the property up to completion and take your chances with selling it at that stage.
At the moment we have no idea when completion on Eagle Heights is likely to be or what value will actually be on the properties when they do complete. Dubai property prices 2016 are not showing great promise so far, but this does not mean that prices will not recover at a later stage.
Here at SellDubai.co.uk we have a large database of end users, landlords, investors and institutional property buyers looking to make an offer on your Dubai property right now. You can list your property with a local agent but it could be on the market for many months, if not years. If you wish to sell your property quickly then SellDubai.co.uk may be able to offer you alternative options. Drop us a line now on info@SellDubai.co.uk.