Star GiGA must consider Equity Merger option
Rationalization and consolidation has to be the answer to the over supply issues in Emirates City (&UAE). This equally applies both to overstretched developers and investors. Star Giga should focus on developing GCD 1 towers only at this stage, and freeze the rest. They need to act as an honorable developer and not issue threats of cancellation (to defaulters) but by cooperating with the investors. To find an amicable way forward, I would suggest that SG should allow an equity share scheme where two existing investor in GCD with similar units could pair up and put their resources into a single unit on 50% share of the equity. This would release a unit which SG can offer to other investors in GCD 2-4, where construction has not even started. I believe this merger & consolidation can also apply to investors with multiple units. If successfully implemented this scheme would help to stabilize the prices in the medium / long term. A Win, Win for all!
Investors planning a visit to Star Giga offices, please discuss this proposal with GM as my attempt to contact the developer via E mail has failed miserably!
I have a 2 Bed unit in GCD 1 on twenty fifth floor. I am looking for an investor with similar unit to join me in a share equity scheme. Please can someone come forward so we can try this proposal out with Star Giga?
UK investor please contact me on + 44 (0) 7711 877421 with a view to organizing a meeting to consider all the options
Star GiGA must consider Equity Merger option
I believe this merger and equity option you have proposed is a good option but unfortunately it will not work out here in Ajman. ARRA has to approve for it along with the developer .And trust me they will never never agree for this .It will hurt their bottom line .
Thanks Hari, ARRA needs to
Thanks Hari, ARRA needs to wake up to the reality, which is the oversupply and little demand (killed off by lack of residency visa). Unless the supply is tapped off, or Residency rules relaxed the Reality market in UAE will never recover. It appers to be sinking on on a very steep down sloop with no bottom in sight. This will effect ARRA and the rest as we are all in the same boat.
If sizeable number of investor support this scheme I am sure a case can be put to ARRA and the developers.
Refer to the court case against Star Giga
Pls check the following link
http://tlg.ae/images/publications/financial-times-01.pdf