Abuja — Nigerians, especially politicians, may have lost over $1 billion (about N150 billion) in property investment projects initiated by Damac Properties in Dubai, United Arab Emirate (UAE).

Apart from Nigerians, nationals of the Kingdom of Saudi Arabia, Germany, Egypt, and United Kingdom, amongst others, have fallen victim to the misadventure.

No fewer than 1,000 Nigerians were said to have been involved in the deals from 2002 to date.

Following Damac's questionable activities in property businesses, governments of Saudi Arabia and Germany have blacklisted the firm, while the Egyptian government is in the process of blacklisting the company, even as its offices have been shut in the UK.

Damac is a property developer based in Dubai which had been having business relationships with prominent Nigerians and politicians who had invested a fortune in the hitherto thriving property market in Dubai.

A team from Damac is due in Nigeria soon with the aim of attracting more funds from unsuspecting prospective investors for high-end property projects.

Director of the Nigerian Trade Centre in Dubai, UAE, Alhaji Mohammed Aliyu Baiwa, speaking with the media in Abuja yesterday revealed that for most of the property projects, the company had collected up to 40 per cent down payment at least five years ago, but to the chagrin of investors, in 2010, the projects had merely been built higher than the foundation level, while some were still at the filing level.

"Most of the projects were supposed to have been handed over by 2007/2008 but as at 2010, they are still at the foundation level and the piling stages, in some cases," he revealed.

Baiwa listed some of the projects in which unsuspecting Nigerians and nationalities of other countries had invested to include; The Corner, Water Edge, Park Central, Damac Heights, Capital Bay, and Residence of Business Centre.

He claimed that The Corner at The Business Bay, which was the main project very important personalities including prominent Nigerians invested in, was expected to be completed in 2010, but had now been shifted to 2014, while Damac Heights, still at the foundation, was supposed to have been completed in 2010.

Baiwa alleged that "out of 25 projects only five were finished after collecting 40 to 50 per cent down payment".

He also alleged that another unfinished project that was supposed to have been handed over to investors in May 2010 is the Capital Bay. This is in addition to Park Central which he claimed had February 15, 2010 as its handing over date.

Others are Residence of Business Centre which was due for completion on February 12, 2010 and Water Edge expected to have been handed over on March 12, 2010.

On whether the investors have asked Damac for a refund of their monies after realising that the projects may never be finished, Baiwa explained that people have asked "but the company was not willing to refund money to anybody. Rather, a team from Damac is already heading to Nigeria on an investment drive to source funds from unsuspecting prospective investors."

He, however, advised Nigerians "to desist from entering into any business relationship with the company, so that they won't be duped".

Baiwa lamented that as a marketing ploy to lure unsuspecting prospective investors to subscribe to their projects across Dubai, Damac promised to reward those who could buy property on the island with a private jet and latest version of BMW car for investors in up to five properties.

The director alleged that Hussain Sajwani, Chairman of Damac Group, a Pakistani who is at the centre of the whole controversy, collected money from Nigerians and transferred to his personal accounts in UK banks. He alleged that Sajwani had transferred about $2 billion to his personal accounts in London.

Damac Group was said to have six companies registered under it for different businesses, one of which is Damac Properties.

According to reliable information, a German investor, Dr Lothar Ludwig Hardt, has taken Damac Properties to a Dubai court over alleged conversion of investments from a cancelled property project to fund The Park Tower, a twin-tower development located in Dubai International Financial Centre.

Worldpress.com quoted lawyers representing the German investor to have alleged that "the developer used the money from other property projects to construct Park Towers, the only development that appears to be ongoing out of the five that Hardt had signed up in February 2007".

"These close links show the other four properties are connected to Park Towers which should have been finished two years ago," Ludmila Yamalova, legal consultant and partner at Al Sayyah Advocates and Legal Consultants, told Emirates Business.

Hardt was said to have invested $9.7 million in five properties which, in addition to Park Towers, include the two cancelled projects - Lotus Residences and Wildflower; Ocean Heights, which according to worldpress.com, " was scheduled for completion eight months ago; and Water's Edge, where construction hasn't been started yet".

Hardt, according to worldpress.com, had therefore demanded a refund of $9.7 million. He had also sought damages and lost profits caused by the Damac's breach of contract and other violations of the UAE, Dubai and DIFC Courts. Yamalova had estimated that damages, loss of profits plus all the legal fees could go up to $140 million.

However, attempts to get reactions from Damac Properties proved abortive as there was no response from their e-mail.