Royal Breeze Handover Fiasco

At long last investors in Royal Breeze buildings 1 and 3 have received letters from Al Hamra Real Estate Development, confirming handover dates ranging from October to November. It seems that a management fee of about 10AED per sq ft is being applied (it is not clear if the car parking space is used in calculating the charge), and there is a one off water and electricity connection charge of 1200AED per KWA as well as a one off water meter refundable deposit of 1000AED. In addition, some owners are being asked to pay a penalty charge as well.

Owners are advised to carefully read their contracts to check if Al Hmara Real Estates is delivering the ‘product’ to specification, as in our view the buildings and infrastructure are far from complete, and the handover process is a fiasco designed by Al Hamra Estates to protect themselves from legal action by unsatisfied owners. Why else would Al Hamra Real Estates rush to handover units that are incomplete, with roads and communal facilities such as a beach area and gym either non-existent or not ready?

In keeping with their track record of abysmal customer service and lack of communication with investors, Al Hamra Real Estates has provided no information on the burning issue of the promised beach for owners, no information on what white goods (or other furniture) will be supplied, no information on the readiness of the infrastructure (such as roads, pools and gym), no photos have been provided, and no help for the purchase of furniture and equipment. It would seem that the main aim seems is to rush (maybe even bully) owners into accepting units that are far from ready with a lack of infrastructure and facilities.

We earnestly hope to be proven wrong in our assessment of the handover fiasco; let’s wait to hear from owners who are about take possession of their units. In the meanwhile we can only ask Al Hamra Real Estates not treat their customers as pieces on a chessboard, be honest and transparent with us and give us excellent customer service and support in this exciting time of taking possession of our units.


Construction Update

Thanks to Denny for the following update (sent by Al Hamra on 30/3/2009):

Dear Customer,

We take great pleasure in informing you that Marina Building E, F, G & H are nearing completion and we have appended details of the pending tasks and estimated handover dates for each of the buildings, for your perusal. We shall write to you soon again for the handover of your property. This mail is just to prepare you for the handover. We have already handed over 200 town houses and Marina, A to D apartments.

Building Pending Tasks Estimated handover
Marina E Final Testing/inspection; painting 30/4/2009
Marina F commissioning of electricity, A/C, testing, inspection and final painting 5/6/2009
Marina G commissioning of electricity, A/C, testing, inspection and final painting 5/7/2009
Marina H Wood joinery, aluminum work, commissioning of electricity, A/C, testing, inspection and final painting. (Currently painting is being done) 5/9/2009

Kindly make necessary arrangements for finances, interior designing, etc.

We take great pride in informing you that the Al Hamra Mall is functional now and we have also attached details of the pending task of the Marina Club House and the completion schedule. We shall keep you updated about the other developments, but in the meantime should you need any more information, please do get in touch with us.

We also take this opportunity to reiterate that we value your patronage and look forward to a long standing relationship which is mutually beneficial.

Best Regards

Charges Payable on Handover

Assuming you bought an apartment with the following details:

Purchase Price AED 550,000
Built up area of 900 sq ft (excluding parking)
Maintenance Charge of AED 10 per sq ft
Exchange Rate is £1 = AED 5.5

You can expect the following additional payment on handover:

Maintenance Charges for First Year AED 9,000 £1,636
Fewa connection charges AED 8,500 £1,546
Electriicty meter deposit AED 1,000 £181
Registration land deposit (2% of original price) AED 11,000 £2,000
Total AED 29,500 £5,363

The Fewa connection charge and electricity meter deposit charge may vary depending on the type and size of unit you own.

Investors have expressed concern over the large Fewa connection charge, as they feel this was included in the purchase price.

Time to Celebrate and Enjoy…?

At long last handover of units of in some of the Marina blocks is finally taking place. For example, one investor recently commented

“Got by email our handover letter and invoice last week for Marina Block C. Have transferred the balance to Al Hamra Real Estate and am now waiting for a formal receipt.” (EyeOnWorldwide Forum, 19/01//2009)

Another investors reports

“Just received invoice for handing over of our unit in building C. Seems that we are getting there at last! Have just asked for a inspection visit before we pay the balance.” (EyeOnWorldwide Forum, 10/01/2009)

In correspondence to an investor, John Mathew, manager for Corporate Strategy & Development at Al Hamra Estates said

“We are still in the process of handing over the Marina A,B & C. Once this process is complete we will start commissioning building D & E. The commissioning process normally takes around 2 month.”

It seems that some investors have alrady moved into their apartment, according to this comment

“I have moved into my apartment in C block there are only 2 residents. Where are the rest of you, it’s lonely!”

Investors report that work is now proceeding on the landscaping in front of the marina apartments, with the paving stones having been delivered. Reports suggest that the Clubhouse will open in March, although there is still plenty of work left to to do, and Al Hamra appears to be busy working on it, including the car parking around the clubhouse.

“The Mall is very nice but only 4 shops open, not the best time to open a shop in a world recession!”

Pictures courtesy of, click to enlarge.