Dubai : Investors in Omniyat's residential development, The Square, say they are being asked to pay full price before units have been handed over, breaching a clause in their original contract.

Over 50 investors in the Dh150-million phase one of the project called a press conference to outline their dissatisfaction with Omniyat, a Dubai-based real estate developer.

Omniyat, however, denies the allegation, stating: "Over 100 investors, representing nearly 30 per cent of the owners in Phase 1, have already taken possession and are occupying units in the first phase of the development."

Phase 1 of the project located in Al Mamzar comprises 544 studio, one-bedroom, two-bedroom and three-bedroom apartments along with several retail units.

Phase 2 which is set for completion in the first quarter of 2010 is the commercial section.

Investors of the 35-year leasehold units stated that their main concern was Omniyat's alleged breach of payment terms and delayed handovers. Investors claim that their contracts stated that units were supposed to be handed over with keys before the remaining instalments were to be paid. However, they state that the developer demanded early payments before the handover began against the agreed payment plan.

"Currently we are threatened that the second instalment will also be deposited whereas the handover is still pending," Asif Mohammad, an investor, said.

The contract states that 50 per cent payment will be made during the course of construction whereas the remaining 50 per cent will be made over the next five years of the handover once the keys are delivered.

"They sent across a commitment letter that the cheques will not be deposited before the keys are handed over but they deposited the cheques without giving us the keys," Mohammad said.

Units ready

Mehdi Amjad, CEO of Omniyat Properties, says the units are ready for handover; investors just have to sign the final contracts.

The investors group also stated that following the handover delay, four additional documents were added on top of the original contract which included a mortgage agreement, leasing tenancy contract, property management agreement and a deed of adherence.

"None of the new clauses resembled the mutually agreed contract we signed when purchasing the property," said Mohammad.

Amjad, however, states that the contracts issued initially were only one-year contracts in line with the Land Department's regulation.

"The contract was created three years ago. [Legislation has] changed in Dubai since then, so we've had to ... adapt the contract to protect the investors."

Investors claim that they have tried contacting the customer relationship director and other management officials but have received no response.