JEDDAH: Dubai-based DAMAC Properties yesterday described as "misleading and inaccurate" an article appearing in Sunday's edition of Jeddah-based Al-Madinah newspaper. In a statement, Niall Mc Loughlin, senior vice president, corporate communications for DAMAC, addressed the "inaccuracies and accusations" in the article.
The clarification related to the references made in the article about DAMAC "not doing well" in the face of the current global financial crisis and the "cancellation" of Hyde Park project in Cairo. "The project is on schedule with the first units planned for delivery in late 2011 as announced," the statement said.
The Egyptian government backed Housing Development Bank in Egypt recently signed an MoU with us to purchase 60 percent of our operations in New Cairo. About the question related to the status of the Al-Jawharah Tower project on the Jeddah Corniche, DAMAC stated that the project was going ahead with it.
In fact, DAMAC appointed Kasktas as the enabling contractor last month. "Our consultant is in touch with the municipality on a daily basis to finalize the approval process." It was stated in the article that comments from the company on the claims of the investors were not forthcoming and that Hussain Sajwani, the company's chairman, and its media relations manager had not been returning calls.
"Neither the DAMAC corporate communications team nor their PR agency in the Kingdom were contacted in regard to this article," the company said. The article claimed that DAMAC was evading questions from journalists because it did not want its problems to be publicized. "Our official spokespeople are always available for comment or answer any media enquires, our policy has always been transparent."
Referring to the questions posed by the newspaper, DAMAC stated: "Both Hyde Park and Al Jawharah projects have started. Neither Hyde Park nor Al Jawharah has been canceled. As per the signed sales and purchase agreement with the clients, the company will compensate the client in case there is delay on the delivery date.
The terms of compensation are detailed in the sales and purchase agreement with clients. If there is a delay in the delivery of a project, clients will be compensated as per the terms of their sales and purchase agreement. About "putting pressure on investors to pay their remaining installments in the projects on time saying unless they pay up it would take action on them for breach of contract, DAMAC added that the contract gives the company the right to terminate the agreements with its buyers without any prior notice if they fail to pay rest of the installments."
"DAMAC is a market leader and our clients are very important to us. We operate in line with best practice and standard practice in the region. Customers are made aware when they make the purchase of the terms and conditions and of the payment schedule and of the process in case of a default on a payment. We are not unusual in implementing this approach. The last action that DAMAC wishes to take is termination of a contract as this does not assist the customer or DAMAC, but unfortunately sometimes this course of action is inevitable," DAMAC added.
