Palm tenants face charges for beach access

Nakheel, the troubled Dubai developer, is mulling plans to privatise the beach clubs on its flagship Palm Jumeirah development and charge tenants for access, Arabian Business has learned.The scheme would see owners and tenants of properties in the Shoreline development asked to pay an annual membership fee to access club facilities, which include gyms, pools and access to the private beach.Nakheel in exchange will cut annual maintenance charges for homeowners to remove fees related to the beach club, a source said.It is not clear whether the developer plans to open access to the beach club to non-tenants, subject to payment of an annual membership fee, but it is understood Nakheel plans to overhaul the clubs to meet hotel-style standards. The reported move has enraged residents, many of whom say they would consider moving if they were forced to pay additional charges.One resident told Arabian Business: “If we are made to pay to use the beach club, then there is no way many people living on the Palm would continue doing so.“There would be no point living on the Palm if you have to pay to go to the beach. You might as well live in a place like Jumeirah Beach Residence where you can use the beach for free.”When contacted by Arabian Business on Monday, Nakheel declined to comment.It is unclear if the indebted developer will be able to secure approval from Dubai’s Real Estate Regulatory Authority (RERA), which would need to sign off on plans to privatise the facilities.Nakheel is currently in dispute with Shoreline owners over who owns the right to the clubs, which has led to owners being billed separately for maintenance charges linked to the pools and beach facilities.“We are saying that the pool and the clubhouses belong to the owners as common property,” one home owner, who asked not to be named, told Arabian Business.Homeowners on the palm-shaped development have argued that they bought their properties on the premise they would have access to the pools, gyms and private beach.“We’ve submitted a lot of [sales] material that people bought the place under. We believe the sales material – albeit it’s not a contract – is in fact legal documentation,” the tenant said.Nakheel was at the centre of the Dubai’s debt crisis in 2009 after the global economic crisis burst the emirate’s five-year real estate bubble.The state-backed developer is currently restructuring $10.8bn of debt and last month saw its ownership transfer from Dubai World to Dubai government.The firm has stalled construction on at least 100 projects in the wake of the downturn, according to data on the website of Dubai property watchdog RERA. From/Arabian Business