DUBAI // Deyaar Development will unveil measures to help reduce the risk of property defaults, including full refunds on two of its projects.
The measures are part of a strategy to help the firm, Dubai's second largest property developer, survive the economic slowdown.
They also include reducing prices for properties that have already been sold.
Markus Giebel, the company's chief executive, said the measures would be announced next Tuesday. "There are a couple of projects where we'll give 100 per cent of the money back and a couple where we will have other incentives, which also includes cash back," Mr Giebel said, declining to say whether the full refunds were for projects to be closed down.
"This is just one little step of it."
Deyaar last month said it planned to offer some buyers the option of swapping their purchases for other property so the company could phase out several projects. In January, it put all unsold projects on hold.
The company is also extending payment schedules to be more consistent with construction deadlines.
"It is part of the medicine we will give to our clients so they will be stabilised and hopefully the default rate will be as low as possible," said Mr Giebel.
"It is in our best interest to keep the default rate low. We have to assist our customers." Mr Giebel said the current market was more about stabilising than selling, and firms needed to be more focused on their customers.
"Before, you would just sign a subscription form but wouldn't talk or interact with the customer," he said. "Now to make the change we need to know our customers."
Mr Giebel said Deyaar's new strategy would be introduced over the next six months, after which it might consider mergers.
Rumours of a possible merger with Union Properties began late last year, although both firms have denied they have been in talks.
Simon Azzam, the chief executive of Union Properties, told The National this month he would welcome a merger "if the partner brought a genuine advantage to the company's overall business operations".
Mr Giebel said today: "If you merge a strong balance sheet with a weaker one it will stabilise both companies.
"It would be good for increasing shareholder value and for stabilising Dubai. If we all go down, Dubai will go down. But there are other solutions; merging isn't the only one."
Mr Giebel said none of the company's customers had defaulted, mainly because Deyaar had been assisting those struggling to meet payment schedules.
He said the company had enough cash to meet its commitments and expected to be profitable this year, despite the downturn.
Its net profit for the fourth quarter of last year was Dh343 million (US$93.3m),
compared with Dh216m for the same period in 2007. Property prices in Dubai have fallen by as much as 50 per cent in some developments since the financial crisis took hold.
"We believe that 2009 is the year of the bottom and in 2010 the recovery will start," Mr Giebel said.
Deyaar said last month it would deliver 1,300 units across seven projects this year.
Those scheduled for delivery include Citadel, a commercial tower, and Hamilton Residency, a residential tower, both in Business Bay; and Madison Residency in the Technology, E-Commerce and Media Free Zone.
Others include Coral Residence, Jade Residence, Sapphire Residence and Ruby Residence, all at Dubai Silicon Oasis.
agiuffrida@thenational.ae
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The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
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Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
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Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
The specs
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The specs
Engine: 2.0-litre 4-cyl turbo
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Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
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BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
One in four Americans don't plan to retire
Nearly a quarter of Americans say they never plan to retire, according to a poll that suggests a disconnection between individuals' retirement plans and the realities of ageing in the workforce.
Experts say illness, injury, layoffs and caregiving responsibilities often force older workers to leave their jobs sooner than they'd like.
According to the poll from The Associated Press-NORC Centre for Public Affairs Research, 23 per cent of workers, including nearly two in 10 of those over 50, don't expect to stop working. Roughly another quarter of Americans say they will continue working beyond their 65th birthday.
According to government data, about one in five people 65 and older was working or actively looking for a job in June. The study surveyed 1,423 adults in February this year.
For many, money has a lot to do with the decision to keep working.
"The average retirement age that we see in the data has gone up a little bit, but it hasn't gone up that much," says Anqi Chen, assistant director of savings research at the Centre for Retirement Research at Boston College. "So people have to live in retirement much longer, and they may not have enough assets to support themselves in retirement."
When asked how financially comfortable they feel about retirement, 14 per cent of Americans under the age of 50 and 29 per cent over 50 say they feel extremely or very prepared, according to the poll. About another four in 10 older adults say they do feel somewhat prepared, while just about one-third feel unprepared.
"One of the things about thinking about never retiring is that you didn't save a whole lot of money," says Ronni Bennett, 78, who was pushed out of her job as a New York City-based website editor at 63.
She searched for work in the immediate aftermath of her layoff, a process she describes as akin to "banging my head against a wall." Finding Manhattan too expensive without a steady stream of income, she eventually moved to Portland, Maine. A few years later, she moved again, to Lake Oswego, Oregon. "Sometimes I fantasise that if I win the lottery, I'd go back to New York," says Ms Bennett.
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