Bloomberg News

Nakheel Names Palm Homeowners Who Haven’t Paid Service Fees

December 30, 2011

Dec. 29 (Bloomberg) -- Nakheel PJSC, the Dubai-based property developer embroiled in a dispute with residents over the use of facilities on its palm-shaped island, posted the names of homeowners who owe the company service fees in an attempt to force them to pay.

Lists posted today at the entrance of each apartment building at the Shoreline complex on Palm Jumeirah contained the owners of about 90 percent of the homes, along with the amount of money owed to Nakheel. A spokeswoman for Nakheel, Dubai’s largest developer by assets, declined to comment.

Earlier this month, Nakheel told Shoreline’s residents that they were banned from using the complex’s private beach, swimming pools and gyms unless they pay an additional 5,000 dirhams ($1,360) per household. Real Estate Regulatory Agency, Dubai’s property regulator, said Dec. 27 that Nakheel cannot deny anyone who has paid services fees approved by the regulator from using the facilities.

Dubai developers are looking at new ways of generating income after the global credit crisis forced them to shelve projects across the emirate. Nakheel has incurred 78.6 billion dirhams in losses since the crisis began in 2008.

Many owners of homes on the man-made island haven’t yet paid their service charge and Nakheel required temporary security cards to prevent those who haven’t paid from accessing the facilities, Marwan bin Ghalita, RERA’s chief executive officer, said in a Dec. 27 interview. Residents will continue to have access to gyms, pools and a private beach provided they have paid their service fees, he said.

Nakheel charges residents service charges based on the size of their apartments, according to Rakesh Sharma, a property consultant at RBA Real Estate, which manages properties at Shoreline. The fees amount to about 25 dirhams per square foot.

--Editors: Andrew Blackman, Ross Larsen.

To contact the reporter on this story: Zainab Fattah in Dubai on zfattah@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.


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