Group Letter to Al Hamra Estates

To: John Mathew, Manager Corporate Strategy & Development, Al Hamra Estates

Dear Mr Mathew,

First of all we would like to give you and all staff at Al Hamra Estates our best wishes for the New Year.

We, as investors in Al Hamra Village are aware that the next payment for Royal Breeze owners is due very soon. As you know, the current global economic downturn is affecting all of us, including the UAE property market which has not escaped the effects of the recession.

Many big property companies are taking positive steps of supporting investors such as offering flexible or extended payment plans. For example, in an article in GulfNews [14 Nov 2008] Peter Penhall, CEO of Gowealthy said, “Since there is a liquidity shortage and banks are reducing mortgages, it is important to offer flexible payment terms to end-users so that they are not forced to seek bank loans or mortgage finance.” Your attention is also drawn to another article in TheNational [30 Oct 2008] where Sharjeel Hassan Vijdani, vice president at Habib Bank AG Zurich, said the market situation called for a policy change by developers. “I would not be surprised if Emaar and others come up with soft payment plans. The market conditions dictate that”, he said.

We would appeal to you that Al Hamra Estates delay the imminent payment deadline for Royal Breeze owners from January 2009 by at least 6 months. We would also request that only 50% of the payment should be required as staged payment (or 60% who have already paid this amount), with the balance being due on handover of the unit. This would be entirely appropriate in light of the fact that construction progress of phase 3 has stalled and very little construction (apart from piling for building 1, 2 and 3) has taken place over the last 2 years.

We would also like to remind you that the vast majority of investors remain unhappy with the level of customer care and lack of communication to investors afforded by Al Hamra Estates. Why should we have to rely on fellow investors who have been fortunate to visit the project site for updates? And why indeed should we have to discuss the progress of Al Hamra based on rumours?

In a recent article in TheNational [8 Sep 2008]) Alexander McNabb, a group account director at ‘Spot On Public Relations’ highlighted the importance of online communication between investors and developers. “Most people online will appreciate the dialogue rather than silence. And if you’ve got unhappy customers, how long can you afford to simply ignore them?” he said.

We would strongly urge that Al Hamra Estates make communication and progress reporting to customers one of the highest priorities in 2009. Also be aware that are a number of websites where investors are speculating on progress and venting their frustration because they have received little or no official updates as to what is happening, here are a few:

It is our hope that you will make it a policy to provide regular and detailed construction progress reports to keep us informed of progress or delays. It is our understanding that both the and the have written to you on this matter in the past, and that you have ignored their communication. It is also our understanding that there are a number of petitions in progress designed to press Al Hamra Estates for better communication and customer service.

We the investors are as keen to avoid speculation or negative comments, as we’re sure you are. We hope you will take note of our comments and concerns, and will provide a quick reply on the matter of deferring payment and on the issue of customer service. Please be advised that we are prepared to take up our case with HH Sheikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah.

Looking forward to your reply.

Signed by a group of investors


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