Follow Up Letter

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

Dear Mr Mathew,

Whilst it is reassuring to know that work on RB1 and RB2 has started, we are disappointed with the level of detail in your progress report.  From your statement that the ‘work is in full swing on the structures of RB 1 & 2’, we are still none the wiser – does this mean the walls are going up, or that the foundation been completed, or that level 1 has been reached, etc? We would greatly appreciate a more detailed progress report with photos.

We understand that projects are unavoidably affected by issues around resourcing of materials, workforce shortages, power supply issues, etc.  Our only request is that if there are changes in design, timescales, facilities in the resort, etc. that we be kept fully informed, rather than left wondering what is happening with the development. Many of us who purchased our units over 2 years ago were led to believe that completion would be end of 2008.  During further correspondence with Omar Obeid in Jan 2008 we were told that ‘the expected completion date for the Royal Breeze buildings will be between Dec 2009 and Jun 2010’ by him.  We are now being told that completion may not happen till the end of 2010.

We would also like to remind you that many of us have already paid 60% of the purchase price, with another 10% being due at the end of this month.  We feel that this 60% payment should be more than sufficient to pay for any work on RB1 and RB2 at this early stage of the construction.  Many of us are struggling to make the next payment due to the financial downturn, so would like to repeat our request that 50% (or 40% for those who have already paid 60%) be payable on completion.  We would be grateful if you are able to make a strong representation on our behalf to the General Manager, Romain Felber asking that the payment schedule be revised to these terms.  We hope Al Hamra Estates will look favourably on our request.

One question that we would like answered urgently is that if an investor is unable to make the next payment for the Royal Breeze, what the consequences are, and what understanding / help Al Hamra Estates will offer in such circumstances, given the global financial crisis.

We have many further questions that we would like you to address, such as standard of finish, fixtures and fittings, maintenance charges, etc.  If you are agreeable, we would like to suggest setting up a regular communication with you, perhaps once a month or bimonthly, which would give us the opportunity to ask questions, raise concerns and make suggestions as a group.  Be reassured that we would endeavour to make this communication professional and constructive and avoid generating any bad publicity.

In conclusion, we would be grateful for a more detailed progress report, an agreement to amend the payment schedule as requested, and consideration of our request for a regular communication.

We look forward to your reply.

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1 Comment

  1. RB Investor said,

    7 January 2009 at 12:44 pm

    Have we got a response from the Al Hamra group regarding the suggestion about the deferring of the 60% payment (sent on 8th Jan 2009)? The photo they have sent of the work in progress is unbelievable. I was there in Aug 2007, and it doesn’t look much different. I am very nervous of paying my next 10% instalment, but I guess I’ll have to if I want to keep the property. I wish I’d never gone ahead with this investment.

    I’d like to sign up with the Group as I’m a very worried investor.


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