Gardens of Fedala - Marrakech

RobT · #1 16-08-2009, 11:54 AM

The planned development didn't go ahead and I understand a few investors have cash that they are still wanting to see returned - I'm one. Looking to understand if other adversely impacted parties are willing to connect and share thoughts on appropriate next steps etc. Looking forward to hearing from you! Thanks RobT

nettle · #2 15-09-2009, 10:41 PM

Hi

I received an e-mail last week to "update" me on developments. This was basically a new vision document!! Informing me that the site was being completley redesigned. This is the first I had heard of this no mention of refunds, where I stand with current contracts etc. Spoken to lawyers who told me the following:

"R2I had to go through a massive reorganisation when the situation with Mr Deutsh went wrong; they have now reorganized themselves.

What they are going to offer you is a new contract with new Director, new delivery date, new masterplan, new house size, etc. We are representing your interests and the interests of the other clients who have appointed us and we have helped R2I to draft the new contract that is going to be proposed to you. This contract offers more guarantees in terms of penalty for late delivery, etc.

As whether you should accept it or not, we cannot give legal advice on commercial matters; if the developer for reasons that may or may not be justified decides to extend the surface area of the project and consequently build larger houses, there is very little we can say as to whether you should or not go for it. We can however advise you to have a new contract if you decide to go ahead with the new proposal (due mostly to the change of the object, the new delivery date, etc…); your previous contract will not be accurate any longer as the entire masterplan is going to change and so your property.

If you decide not to go for this new project and cancel your contract, the Developer is entitle to refund your monies, only on completion stage which should be according to the new contract around December 2012; if you decide to cancel, you should ask for solid guarantees from R2I, in order to be certain to get your money back in 3 years time."

I have no legal background but find it incredulous that I would have to wait until completion of this project to have my money returned. Not impressed by R2i handling of this whole thing was actually speaking to Stuart Newman at R2i while reading this e-mail from the lawyer and he couldn't even give me the basic detail from this e-mail and he is supposed to be handling this! Really have to question if they know what they are doing. Feeling like a bit of a mug at the moment as they have had my money for three years now.

Am waiting to see what these new contracts say before making a decision.

Anyone else in similar position with more info or thoughts?

All at sea · #3 03-10-2009, 10:26 AM

Hi, I am in the same position. We were sold this development (now in its fourth incarnation for me) as a great property, in a great position, fully furnished, in a fantastic rental programme and a very good developer. Now R2I tell me that the the developer actually was not so good, the location is too far out for the size of units we have purchased (but for more money they are willing to rectify this!), the originals plans were poor and unambitious, and they have not even considered yet whether the units will be fully furnished (so there could be further costs) and the guaranteed rental income programme seems to have disappeared.

When I put these questions to R2I, via email because I have had a bad experience of them using a non-existant conversion against me, I have unsurprisingly not had a reply. To now find that we cannot get a refund until the development is completed is not great either. Basically they are forcing people to complete on a project which we have no information on, after holding our cash for over three years. I feel like a mug too.

On a positive side, R2I have pushed through their development in Argentina, so where they have control we might actually see some progress. I will wait and see the final plans and contracts and then assess options, if any.

nettle · #4 03-10-2009, 02:45 PM

Well you have more information than me I was unaware that the rental income was likely to disappear. I can feel that I might want to take legal action regarding the whole situation but I will wait to see what comes of the new contracts first.

Am chasing them up again this week as still waiting from promised information two weeks ago. will keep you posted with anything else i find out.

All at sea · #5 03-10-2009, 03:37 PM

Good luck, it will be interesting to hear what they come up with. Regarding rental income and furniture, the person I spoke to had no idea what was happening. It may not be on R2I's radar, or it may be such early days that they have not had time to consider it yet. The original rental agreement was tied in to the developer's company, and now he has gone I expect that there is nothing to replace it. Not great, as this was a huge factor me in buying, but I would be very happy to be proved wrong and R2I sort something equivalent out.

RobT · #6 24-10-2009, 10:40 AM

The most recent update I have from R2I is that the new manager of Idsud (the owner of MAR), Mr Molinare, is carrying out a full audit of the Fedala and the Fez development ahead of making any go / no-go decisions on developments. Only pressure it would appear we, as disgruntled investors, may be able to bring to bear is to place a charge on the Fez land via a local legal firm. Sounds complicated and not a freebe - but maybe R2I should fund on our behalf! R2I are apparently also trying to raise the funds independently - but in the current market environment I can see that being a big ask of a small company. We are supposed to be receiving an update shortly! Please keep us posted on anything you hear and any ideas you may have.

nettle · #7 15-11-2009, 08:52 PM

Recent updates for both Marrakech and Fez received. Backs up what Rob T says about Fez but also seems to suggest that we may be able to pull out at this stage? Am awaiting a reply to my latest communication. Not holding my breath as I still have not had any replies to my previous three e-mails. Will find time again this week to try again on the phone and let you know what is said.

RobT · #8 15-11-2009, 09:43 PM

I've been promised a response this week following a review by Mr Molinare’s, the guys that has taken over the investment strategy for the parent company.
Also understand that work is underway to lay-out the process of putting a charge on the land. Will update once / if I hear anything more

All at sea · #9 26-11-2009, 07:47 PM

Is putting a charge over the land a last resort? My concern if this happens is, does it effectively stop the development from happening. The worst result of all is to have a development in limbo and nobody is able to proceed.

RobT · #10 30-11-2009, 10:08 PM

I've just received an update that basically states that the legal charge is the only course of action now recommended given the lack of response by the developers lawyers. However a change already appears to exist on the land and if I was the management company I'd have made sure this is water tight and can not be over-ruled by secondary actions from disgruntled investors.

They are giveina very short deadline to investors to make a decision and fund the additional legal work.
Anyone have any smart thoughts?