The Mystery of the Royal Breeze

In many countries the divide between the rich and poor remains wide as ever, with little prospect those on the upper rungs of the wealth ladder loosening their grip lest that those at the bottom might climb up a little. Whether this is the case in Ras Al Khaimah we leave readers to consider. But one thing is certain; the Al Hamra Village resort has been blessed with the privilege of experiencing the Royal Breeze. Mind you, the prospect of this not happening is quite distinct, given the track record of inaccurate information emanating from Al Hamra Estates.
So what exactly is the current status of the Royal Breeze development at Al Hamra. The best we can do is submit a recent report filed by a poster on the Eye on Worldwide forum, who says that after lots of emails to Al Hamra he eventually managed to get the following basic information:

• Al Hamra Estates says it does not have the facility to keep customers informed of progress (photos, etc) and this service is not included in their customer care department scope of work.
  
  
• Phase 3 is still under piling stage and construction standard will be similar to the existing Phase 1 & 2 buildings
  
  
• Phase 3 is scheduled to be ready within 3 years
  
  
• Prices of properties purchased in the years 2004-2005 at Al Hamra have risen by 2.5 times
  
  
• Al Hamra Estates never gave, and shall never give any compensation to any party whatsoever, no matter what the reason, this is their policy and they cannot change it.

He was keen to stress that the above information was provided by Al Hamra, and we see no reason to doubt his word. Sadly, it would appear Al Hamra's policy of refusing to communicate with investors continues even when Royalty is involved. Whether The Royal Breeze will be built (and when) continues to be shrouded in mystery. While many investors feel that the way Al Hamra Estates deals with it's customers is unprofessional, some would argue that their behaviour borders on the unethical. We are inclined to agree.

We cannot but help repeat one posters advice: As the saying goes, “prevention is better than cure”, so keep asking and monitoring to ensure you get what you signed up (and paid) for. No use complaining after the event.

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Power Supply Crisis

One does not need to be a rocket scientist to understand that keeping customers updated on the progress of investments they have made in your company is of the utmost importance if you are to keep them onboard, and if you want to ensure your company maintains a good profile. This simple fact seems to have eluded those in charge of running Al Hamra Estates. One comment posted by an investor sums up Al Hamra Estates position rather succinctly - “from Al Hamra there is only one reaction: nothing”. Another poster observes “vague suggestions that something will be done in 6 months are no different than the meaningless approximation of project completion dates”.

The latest rumour circulating on discussion forums revolves around the power supply (or rather lack of it) situation at Al Hamra. And rightly so, for without power any progress comes to a grinding halt. Even by UAE standards the delays faced by investors at Al Hamra Village are unprecedented. We can only conclude that somebody has seriously goofed here - either the developer is not liaising properly with the government regarding energy supplies or the government has not been forthcoming or knowledgeable about its own resources. In many countries there would be calls to instigate investigation into incompetency, corruption, etc. if such a thing was to happen.

We can only speculate (in the absence of any information from Al Hamra Estates) that in the short term, temporary solutions such as the use of water borne generators may be the answer. In the long term, there is undoubtedly an urgent need for new power plants to meet the growing demand for energy in RAK. Such facilities are unlikely to be ready until about the time Royal Breeze is completed, 3 or more years from now. In any case, it would it at least 18 months before any new plants could be built and in operation.

Some investors are saying that problems with FEWA will be resolved soon, even within the next 3 to 6 months. Others however are of the opinion that because of the large number of new developments in RAK, Al Hamra Estates is actually running out of energy, and the project may have to abandoned! A recent report by Coffee on the Eye on Worldwide forum may be of interest to investors:

Have just returned from a weekend at Al Hamra and understand that we may still be looking at several months before power is connected. Meantime whilst Management will have us believe that A & B blocks are completed and only awaiting service supplies, I took a wander and see that some ground floor apartments still have cables hanging from ceiling and walls and are nowhere near complete and no signs over the last couple of months of any work going on in these blocks - this may suggest that we really are still a long way off handover. Also on my walkabout I spotted that transformers and water units have been installed in the maintenance building alongside buildings B & C - so at least when FEWA have the supplies Al Hamra are seemingly in a position to move the supply into the buildings, which until very recently they were not! There seem to be markers going into the ground for the siting of Royal Breeze apartments, and again no sign of any physical construction work going on in these areas.

To finish off, since he has put it so well we cannot refrain from sharing this posters final comment:

...if only Management would share the truth with us all it would make the waiting much easier and stop these rumours which help nobody.......

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Royal Breeze showcased at the Burj Al Arab

Our man in Dubai was present at the recent ‘showcasing’ of the Royal Breeze apartments at the Burj Al Arab on 28/29 Jan 2008. Whilst not definitive by any account, nevertheless we present his findings during a chat with one of the the sales managers there. Potential investors are cautioned that Al Hamra Estates has a history of lack of communication, and often the information given is of the ‘flexible’ or changeable variety (such as the ever shifting handover dates).

When phase III including RB will be completed?
I got three different answers from three different agents working for Alhamra: end of 2009, July 2010 and early 2011. However the manager who I spoke to said July 2010?

What do you sell today?
RB 4, RB 6, RB8 and apartments in Alhamra Palace Hotel.

Was it successful?
Yes we sold around 160 units within 48 hours.

When construction will be started?
They have already started the construction

Would RB1-3 be completed ahead of RB 4-8?
Yes we will start with three buildings first (RB1-3)? No I am not sure, just drop me an email and I’ll find out for you..!???

Would be any constructions on the beach side?
Yes it will be as plots on the sea side are own by local people; nevertheless the RAK government will not given any plan for tower constructions on the sea side, perhaps G+2?

Would RB have a private beach?
The RB would have a private beach around 1000 Sq M opposite RB6-7.

Any plan for man made island?
Yes the start of the trunk will be next to the RB’s private beach opposite the Road.

So we might see towers rising from the island?
It is not decided yet if we would start to sell plots to developers or develop them ourselves.

Would car park area and terrace be included in management fees?
No only build up area and balcony.

Courtesy of a post by Cyrus on Eye on Worldwide forum

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Beach Facility at Al Hamra Village?

The more laid back amongst us may be inclined to take for granted the facility of a free and private beach at Al Hamra Village. Let's face it, we may at this very moment be dreaming of lazing on the beach deckchair, sipping the amber nectar with the warm evening sun providing a soothing thermal massage. Such an essential facility could be located at two possible sites; a) at the lagoon in the vicinity of the Marina blocks, and b) at the sea front area (separated from the Al Hamra Village by a wide open plot of land not owned by Al Hamra)

The direct beach access at the lagoon near the Marina blocks should provide a nice venue for sun and sea bathers, with little in the way of waves. However, there may be issues around cleanliness due to the surrounding Al Hamra development, the marina berths and possible heavy rain. Whether this will be a nice beach area to chill out remains to be seen.

In our opinion the large stretch of beach at the sea front should be reserved for the residents of Al Hamra, but Al Hamra Estates have only indicated that an area located at the far end of the Royal Breeze (away from the lagoon and marina) might be set aside for the exclusive use of residents. This assertion has yet to be depicted in any official Al Hamra literature. It would be unwise for prospective investors to assume that the entire Al Hamra development is fronted by a massive sea-side beach.

The reality of the current situation is that investors in Al Hamra are totally in the dark as to beach access facilty, if any. Indeed, it would not be unkind to say that Al Hamra Estates has done a sterling job in keeping it’s customers in the dark on this issue, even when pressed for answers.

Let us hope that the natural evolution of the Al Hamra project will eventually lead to full sea front beach access as the only sensible option. Perhaps if investors continue to raise their concerns on this matter, Al Hamra Estates (and whoever owns the sea front plot) may come around to seeing the wisdom of making the sea front an essential part of the development.

(adapted from a post by upandhi on Eye On Worldwide forum)

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Make Your Voice Heard

Below is an initial draft of a letter that will be sent to the top bods in RAK. Investors in the Al Hamra Resort project are urged to leave their suggestions for amendments/additions/deletions to this letter by way of comments (link below), before the final draft is sent.


As investors in the Al Hamra project we are looking forward to enjoying the excellent lifestyle, facilities and weather once the units are completed and handed over. Our positive outlook and patience is mixed with a feeling of extreme frustration when comes to getting information, or any sort of customer service from Al Hamra Estates (AHE).

Why should we have to rely on fellow investors who have been able to visit the project site for updates? Why should we have to discuss the progress of Al Hamra based on rumours? Why is Al Hamra so reluctant to speak to it’s customers? A typical response from AHE is that “we do not have for the moment this facility and this kind of service [customer service]”. For such a big company as Al Hamra Estates, it is ludicrous to suggest that they do not have the manpower, expertise on finances to communicate with customers on the progress of the project.

At the recent RAK Conference on 27 Jan 2008, Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler, said that Governments should become models for the private sector by taking efficiency and competitiveness to new heights. We would add that “providing excellent customer service” is another key principle for role models to adopt. AHE cannot be exempt from this drive towards efficiency, competitiveness and excellent customer service.

Despite our reservations, we still remain optimistic about Al Hamra project, and look forward to enjoying the fruits of our investment. We just wish that AHE saw it’s investors as integral to the project, and communicated with us as such.

We would like you to look into AHE communication policy with customers and their lack of customer service, in particular ensure that AHE

• keep customers informed of progress and respond to customer questions
  
  
• take responsibility to ensure that any reseller it hires give clients accurate information, and keep them informed of progress
  
  
• does not blame resellers (such as Global Estates) for its own failure to keep customers updated. After all, resellers can only provide information supplied by AHE
  
  
• take immediate steps to dispel the impression of the vast majority of investors that AHE does not wish to engage with it’s customers in any way, and customer care is at the bottom of it's agenda.
  
  
• make excellent customer service a top priority
  
  
• take seriously any grievance investors may have with regard to poor customer service
  
  
• set up an Investors Discussion Forum, or take note of the issues being discussed on public internet forums by investors so that investors don’t have to speculate on discussion forums as to what is happening with the project


• send out an regular progress update email, with photos if possible to investors
  


• have a clear and fair policy on compensation any breach such as delays in the completion date, or reduction in finish quality

We will continue to insist for that Al Hamra Estates deal with us in a honest fair and customer friendly way, and deliver what was agreed in the contract.

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