Cirrus Developments, a real estate developer, yesterday said it has presented a restructuring proposal to the purchasers of Aquarius Gate project that will convert their status from “unit purchasers” to “shareholders” in new project company.
The proposal has already been presented to the Real Estate Regulatory Agency (Rera) and was worked on by Wong Partnership, a leading law firm with extensive experience in real estate funds, the company said in a press release.
Behnam Eshragh, Chairman of Cirrus Developments, said: “This proposal is for information only and does not nullify the reservation form, the property purchase and sales agreement and/or any notices which are in place. It provides a way forward for Aquarius Gate and offers a collaborative solution for the purchasers and the developer.”
“We have presented the proposal to Rera and they have asked us to discuss it with the purchasers, which we are now actively doing. We are confident this proposal will work. It requires significant sacrifice from us as the developer as it is an erosion of profit.”
The offer will be limited to the purchasers who agree to pay (or have paid) the installments up to 30 per cent.
The remaining amount to reach 30 per cent, which is currently overdue, will be collected over a period of 12 months.
The benefits for existing customers will be as follows: they will become part owners [investors] and so have a say how and when the project is developed, the investors will be entitled to a share in the potential profits which will be paid upon completion of the project and future commitments will be based on actual cost as opposed to a selling price.
December 3rd, 2009 at 3:07 pm
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