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COMPLETION OF ACW HOLDINGS’ HANOVER SQAURE – What we were PROMISED and what we finally GOT…

What we were Promised by ACW Holdings in 2007

• Fully furnished 5 star quality serviced apartments with swimming pool with Jacuzzi, sauna, steam room and fully equipped health clubs. NB: throughout SPA, the development is described as resort (holiday resort rather than serviced apartment) and this is an important variance. Luxury and convenience also described in the leaflet received at the point of sale.

• Freehold property • Verbal promises at the point of sale such as flight tickets for 2 plus 5 star

accommodation for 2 nights so that owners could inspect their apartment and satisfied with the development. Once the owners are satisfied, handover process could commence.

• If floor area is increased by more than 3% the seller shall be entitled to increase the price but the current law states If the floor area is reduced by more than 3% the seller shall reduce the purchase price.

• Completion by 2009 • A unique investment with unique Returns • High Returns with Tax free investment in Dubai • Gain Higher Returns from a 5 star quality serviced apartment • Granted UAE residency VISA to live in Dubai • Prestigious apartments designed to distinguish themselves from other developments • An Impeccable Location • Set amid luscious landscaping and unsurpassed lifestyle amenities • A living environment of the highest standard

Some Quotes from the brochure..

“ When only the best will do…Hanover Square is the address for refined living. Sophisticated and luxurious, these serviced apartments offer guests a unique experience. They combine the freedom of an apartment with the amenities of a top hotel: concierge, valet parking, dry cleaning and maid service. Plus are the 3 swimming pools and state of the art health clubs featuring all the latest equipment”

“The well-appointed, upscale residential apartments of Jumeirah Village are aesthetically set off by lush parks, dense green gardens and calming waterways. Residents are privileged

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with contrasting views of the city on one hand, the serenity of the parts and the buzz of a community living in harmony on the other”

“Hanover Square’s interiors and facilities have been designed to offer the very best in comfort and convenience. They are also fully serviced so professional assistance will be a phone call away. What’s more guests will even be able to take advantage of the complex’s private tennis court.”

Some of the Amenities promised

• Elegant Lobby Area • Fully equipped health clubs-Every owner shall have the right and non-exclusive

easement of use, access and enjoyment in the common use facilities • Landscaped gardens • High Speed Panoramic Elevators • 2 floor covered parking • Room – Ceramic Tiling throughout, high speed internet access • Bathrooms - quality vanities and granite surfaces • Kitchen – highest quality kitchen cabinets, granite surfaces, twin sinks and mixer taps • Forming owners association –association shall come into immediate effect on the

Handover date and the purchaser acknowledges and covenants that it shall immediately become a member of the association and bound by the terms and conditions set out in the constitution. Service charge which shall be paid in accordance with the timings and requirements of the constitution. Owners becomes members automatically.

• To serve as a co-owners of the association, the owners are responsible for the performance and enforcement of the provisions of the constitution set by owners association and for the control, maintenance. Members also has the rights and to exercise them.

• Car parking space allocated by the seller and it commence on the Handover date. • The operator appointed by the Resort Manager and notified to the owner prior to

commencement date or such other Operator as the Resort Manager may appoint from time to time to operate Hanover Square- We have neither be notified nor seen the agreement between the resort manager and the operator

• 60% of the owners share of the net operating profit generated by the resort manager/operator

• The owner could occupy the apartment for up to four weeks in each calendar year and the occupation period running initially from the day of handover to 31st December in the same year.

• The resort manager /operator shall insure or shall procure the insurance of the apartment contents packages

What did we finally GET…….

• 3 star apartment • 7 years late • No view of potential returns • Sub-standard quality of finish for a promised 5 star apartment • basic kitchen compared with the highest quality kitchens with granite surfaces

promised

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• Long term rental agreements which will not yield the promised higher Returns from a 5 star quality serviced apartment

• No luscious landscaping and definitely not the promised unsurpassed lifestyle amenities

What does this mean for Investors?

• Loss in value of property. We paid for a 5 Star and got a 3 Star • Lower Rentals - We were promised higher Returns from a 5 Star Quality Apartment.

Now HS will only attract 3 star rentals • Loss of earnings due to project finishing 7 years late • Paid for High end Serviced apartments, now expecting long term lettings

“We were promised a Rolls Royce and we ended up with a Skoda”

What do we want? Some options…

• Cancel SPA with ACW as it miss sold compared to what was promised in the presentation material back in 2007

• Simplified SPA Or

• ACWtopaycompensationtoInvestorsforlossofearningsdueto7-yeardelay.• ACW to refund investors part of their investment on the basis the apartments should be

downgraded to a 3 star building compared to the luxurious 5 star that was promised.Investorsshouldgeta40%immediaterefund.

• ACWtoreduce itsshareof thepool from40%to10%.40%share forACWwas justified ifthey were, in effect, managing a hotel-type property. However, if they are letting outsignificantsectionsofthebuildingtocompaniestouseonalongtermbasis,then,basedonsimilarsetupsintheregion,theirfeesshouldbearound10%.

• Reduceleasefrom20yearstoaninitial12monthrollingleaseonthebasisACWfailedonallexpectationssettoInvestors.·