► reading news

Focus UAE

ACI Buyers team up in Legal Bid to revive Celebrity Towers

German investors are hoping to kickstart three celebrity-branded real estate projects in Dubai after pursuing legal action against the developer for what they claim is fraud. The group, which claims to represent more than 3,000 buyers, wants to band together with UAE residents who invested in real estate schemes backed by Alternative Capital Invest (ACI), in a bid to press ahead with the stalled properties.

"We want to combine the interest from the local investors in Dubai with the investors here from Europe to realise the projects. We think that is the only way how we can give back the money to the investors," group spokesperson Rainer Regnery told Arabian Business. "There are already 400 cases here in Germany against ACI – it’s a big fraud. We have two opportunities for investors; one is to do with the lawsuit, the other side is to realise the projects."

ACI unveiled its plans for three celebrity-branded towers at the height of Dubai’s five-year property boom in 2008, fronted by its CEO Robin Lohmann. Michael Schumacher Business Avenue, Boris Becker Business Tower and Niki Lauda Twin Towers were to be built in the city’s Business Bay district, to include residential, retail and office space. ACI’s website describes the development as "truly fit to be named after a legend". All three towers stalled following the collapse of Dubai’s property market in late-2008, which saw speculators flee the market and house prices slump more than 60 percent from their peak.

ACI filed for bankruptcy on four of its seven property funds in September 2010, according to German media reports. The firm’s website still lists 11 projects that it says are under development, with another six being undertaken by "third party developers". The property funds were launched in 2004, with investors believed to have paid $75m into them.

In an email, the ACI investor group said it had a number of European companies interested in relaunching the stalled Dubai towers.  "Our objective is to get ownership of ACI projects in Dubai, to realise them and bring them to market together with joint venture partners," the email said. "We believe that this is the only way to save our invested money."

The group has the full support from Michael Schumacher, Boris Becker and Niki Lauda, Regnery said.

Boris Becker told Arabian Business in February he was unsure whether he was still involved in the project the bears his name. "I have to think about it, because I believe the deal was three or four years old and I’m not sure whether I’m still involved," he said. "The name is still on it, but whether I’m personally involved? I don’t think so." Becker is not the only star to have distanced himself from the project. Ex-Formula One racing driver Niki Lauda told Arabian Business last year that had hadn’t heard from the developer since the launch of the project in December 2007. "Who is he? No, I only met him once, when I was there in the beginning and I haven’t heard from him since then," he said.

Lohmann in 2009 hit back at claims that the projects were being cancelled and that investors would lose their cash, saying: "For me there is no chance I will do a hit and run. You know why? Because I haven’t even collected the money I have invested and spent here. I’m not going ahead and losing AED500m ($136.1m), it’s not the way." Lohmann could not be contacted for comment.

Source:
Arabian Business

Discussion

No comments yet.

Post a comment

 

INTELLIGENT CORPORATE SERVICES | TAX | LAW | COMPLIANCE BANKING | CUSTODIANS | REGISTERED AGENTS | CORPORATIONS

Welcome to the Web of MCI CLT GROUP - have a good Day!

Language

New articles

\n\n\n\n\nThis News Alert information could be useful, maybe essential for your business activities in the United Arab Emirates. Please don’t hesitate to contact us for further inform...
\nEconomic Substance Regulation (Reporting) implemented in UAE – a massive change of the shape of business operating environment\n\n\n\n\n\n\n\n(Dubai, 07/08/2019) The United Arab Emirate...
\n(The Hague, 17.06.2019) TMF Group, MCI CLT’s associated partners in Asian Offshore Association (AOA), published in the beginning of June its 2019 Global Business Complexity Inde...
\n\n\n\n\n(The Hague, 03.06.2019) Coming out of Q1/Q2 of 2019, the crypto currency space is seemingly reigniting the spark it had lost over the bear cycle that began in January 2018. Ar...
\n(Hong Kong, 2018-06-06) RAK Bank, RAK Bank, RAK Bank (although it could be nearly any other UAE Bank)!\n\n\n\nYou and your other competitors are well know - even over borders - for ar...
\n(Dubai, 25/09/2018) Dear Mr. Alabbar, this is for sure the wrong time to blow in the (wrong) nationalism trumpet.\n\n\n\n\n\n\n\nWhile the UAE government is intensively developing a huge ...
\n(Hanoi, 06.05.2019) From 14.-16. May 2019 it\'s time to increase the footprint in Indochina, especially in VietNam.\n\n\n\n\n\n\n\nWHY VIETNAM?\n\n\n\nVietNam is predicted to be the fastest gr...
\n(The Hague, 23.04.2019) The Dutch government has confirmed that a registry of ultimate beneficial owners of companies will enter into force in the Netherlands from 2020.\n\n\n\n\n\n\n\nTh...
\n(Dubai, 09/04/2019) In March 2019, the Parliament of the Commonwealth of Dominica enacted a series of new laws, forced upon it, as well as upon many other independent nations, by ...
\n(The Hague, 04.04.2019) Although from the headline seen \"just\" something related to the Danske Bank Scandal, this article is a brilliant summary of Deutsche Bank\'s US activities (...

Facebook

Tags