Adelaide Development

Discussion in 'Romania property' started by atul, Jan 18, 2010.

  1. atul

    atul New Member

    All

    I have few questions about the development as purchased there and I do not know whats happening. I have few questions which hopefully someone can answer.

    Does anyone know if or when the development will be comlpete?

    Is it worth taking South Pacific to court over over delays to get back my deposit back. However this is a costly process and what are the chances of actually winnning. I do not want to throw good money after bad. Is anyone else taking them to court?

    Any help would be appreciated.

    Thanks
    Atul
     
  2. mylesgreen

    mylesgreen New Member

    Hi Atul,

    We have purchased a couple of appartments and have been told that the completion date is now set around June/July? I think you might be slightly premature on taking them to court and would advise waiting to at least the summer to see how the build progresses.

    I am interested in what others think about it...
     
  3. atul

    atul New Member

    Thanks for the response. Where did you get this info from. We have been trying to contact Geoff Spears at South Pacific for a while now, but getting no response.

    If you do not mind please contact me on 0 7 8 1 3 1 5 8 6 7 4 and i will call you back.

    Do you know if you do not complete the purchase, the only thing you loose is your initiall deposit. Can they take you to court for not completing and touch your assets here in the UK?

    Thanks
    Atul
     
  4. pash

    pash New Member

    South Pacific Contacts

    South Pacific Constructii SRL
    9-9A Prof. Dimitrie Pompeiu, Sector 2
    Bucharest, Romania
    Ph: + 40 21 319.83.66
    Fax: + 40 21 319.83.67
    Mob: + 40 749. 07.72. 11
    Email: [email protected]
    Web: South Pacific
     
  5. rajurohtagi

    rajurohtagi New Member

    Hi ! thanks dear i m intersting with your propety !!!!
     
  6. alarprba

    alarprba New Member

    alarprba

    I also purchased an apartment in Adelaide development. There was a burst of activity on this development some time ago, but everything has been at a stand-still for a long time now (You can see a fuzzy overhead image of the half-completed development on Google Earth - Lat. 44deg 32'44.80" N; Long. 26deg7'15.02" E)
    The lawyer Martinez Echevarria sees no possibility at this stage of completion, and has offered (for 10,000 Euro) to take my case to court with a very good chance of winning, but no assurances!! I'm not prepared to take that risk at this stage.
    A couple of months ago these lawyers told me they had already started court proceedings on behalf of some others. While the lawyers have always been good at replying to my emails, I have had no replies to my questions in the past couple of weeks as to how things were progressing with these court cases. They maintained that there would be an answer from the courts within 6 months.
    Hope this is of some help - We are in the same boat (and it seems to be sinking!)
     
  7. atul

    atul New Member

    Thanks for that. I spoke to Alina at south pacific two weeks ago and the development is on hold. As they are trying to secure more funding from the banks. As for the completiion she says it could be end of the year. We have decided not to take them to court as it very costly and I dont trust there arbitration system.
     
  8. alarprba

    alarprba New Member

    Thanks Atul. That's the first ray of light I have had that there might be a possibility of completion eventually. If so, I am prepared to hang on. Like you, I have an absolute distrust of the arbitration system there, and fear my lawyer (who was introducd to me by the Property Company who sold me the property and has let me down completely) is just having a go at getting a bit more money off me. It's a long time since I even tried to contact South Pacific, so I will have another try at that
     
  9. alarprba

    alarprba New Member

    Hi Atul. Following your posting I managed to contact Alina at South Pacific who telephoned me at home and gave me a very full explanation of the current state of affairs at Adelaide. She tells me that they plan to recommence building Block 1 fairly soon, followed in sequence by the rest of the blocks - each in turn completed including infastructure and utilities. I am prepared to wait a while longer and take my chance on that (She is suggesting mid-2011 for my Block 6). Meantime I have been contacted by Vista Capital, who seem to know all my details and want to sell my property for me. I am very wary of them - not least because apparently they will ask for money up front. You will probably hear from them, if not already!
     
  10. atul

    atul New Member

    alarprba, Also got contacted by Vista Capital. Do not even bother with them, just another company trying to get money out of you. Best thing at the moment is wait and see when your block gets completed. Then assess the situation then unless you can sell it before then. Unlikely though.

    Thats what we are going to do
    Atul
     
  11. Sus

    Sus New Member

    Adelaide Development Romania

    We were to purchase one property in the above complex and were told by the lawyers that we will now have to take legal action against the developer in order to get our deposit back as the developers were unable to get funds from the bank to complete the project. Has anyone been successful in getting thier deposit back these developers?

    What stage are people at, as we have heard nothing for a long time and have to constantly chase the lawyers?

    Many thanks

    Susan
     
  12. mylesgreen

    mylesgreen New Member

    Update from Romanian newspapers.

    Hi Everyone,

    I have tried to keep up to date with everything that has happened over in the South Pacific - Adalaide Deveopment.

    Firstly, i had spoken to Geoff Spears back in Nov/Dec 2010 about the proposal to gain further funding from the bank, they were confident that this would be achieved, but from reading this artical it looks like the parent company is not willing to commit.

    Type, google and South pacific developers, Romania (2nd link)


    This could have serious consequences for all of us, as if their overheads are >remaining funds then we will lose the lot!!

    I have also gone to 3 different laywers, 2 from the UK, and 1 from Romania, and all of them want +£6-8k to take them to court, and still don't guarentee results in getting the money back.

    Personally, i am gutted and have learnt a very expensive lesson from this. It sounds like they are trying to sort something out, but i won't be holding my breath.

    If anyone out there has some positive news, please share it with us......

    Myles Green

    0 7 8 1 4 6 8 0 5 9 5
     
  13. neill d

    neill d New Member

    I met Andrew Prelea CEO of South Pacific in mid November and he said that the bank wanted to lend for the Adelaide development on terms which were prohibitive.

    On the other hand the terms from a bank were acceptable for the Melbourne development but this can't proceed either as he has put the South Pacific Melbourne company into insolvency in order to get rid of a joint venture partner who won't agree to proceed even with bank finance.

    Andrew said that he had offered to relocate investors in the finished Sydney development.

    From a conversation with a staff member today I get the impression that they are hoping to proceed with Melbourne next.

    The worry is that with only Sydney and Brooklands to sell and rent out there will be insufficient cash flow for the business. They need to get something else moving. At least they had reduced their overheads by moving their offices into unsold properties.

    My feeling is that money can easily be wasted trying to get money from a company which is struggling in the current Romanian economic climate. Hopefully the big cuts were done in 2010 and the Romanian economy can start to grow again, as is projected.

    I am owed money for a late completion on my Sydney properties and a rental guarantee which was not honoured. I have one property still unlet. However I can tell that I am going to have to be patient for a while longer. I was told today that they were unable to start their quick build carbon neutal cheaper units development next to Sydney as they have been unable to generate sufficient demand from buyers. This would have been a way to trade themselves out of their difficulties.
     
  14. Nicola BSN

    Nicola BSN New Member

    I have had word from our lawyer that the deadline to be added to the First List of Creditors for South Pacific is 15th February 2011. Obviously they have tangible assets but after the bank and tax office have had their share it is going to be difficult, for anyone listing as a creditor after this deadline, to get any of their money back.

    I would urge you to contact your lawyer to be added to the first list immediately.

    If you are being told otherwise (by a lawyer with a conflict of interest, perhaps) go onto the British Consulate website and get another lawyer and make sure you have all your paperwork ready to send. I'll keep this forum on my desktop for a while in case anyone needs more info.
     
  15. neill d

    neill d New Member

    Hi Nicola

    Thank you for your message.

    Is this First List of Creditors referring to creditors of the Adelaide development?

    Many Thanks

    Neill
     
  16. Nicola BSN

    Nicola BSN New Member

    Deadline

    Hi Neill

    The lawyers didn't specify - they referred just to South Pacific insolvency and we have clients at Melbourne and Adelaide and this date seems to have been applied to both.

    I will seek clarification as to how this deadline affects all three companies and post back as soon as I know more. It's been a bit crazy at our end preparing documents for clients to meet the deadline - we could have done with a bit more notice but there you go - so I've had my hands full.

    I'll find out as much as I can. Have you asked your lawyer about this affects you?
     
  17. neill d

    neill d New Member

    Hi Nicola

    I haven't spoken to a lawyer yet about this.

    Do you know if there are separate South Pacific companies for each development (Melbourne, Sydney, Adelaide) so that the creditors for each development can only claim against the company set up for that development and SPC as a whole won't be insolvent?
     
  18. Nicola BSN

    Nicola BSN New Member

    Hello again

    This is exactly what I'm seeking clarification on. I've emailed our lawyers and I will get a response, no doubt, tomorrow. I've marked it as urgent.

    As I understand it myself, they did set up separate companies - but how this is treated by Romanian law I need to find out, as we haven't come across this type of set-up until now, and the urgency of the situation has exposed these sorts of questions. We normally leave the lawyers to get on with what they do and I don't pretend to understand the complexities of Romanian law so I will have to wait until I get a response from an expert.

    We were only made aware of the situation because we have a client the lawyer is still waiting for important paperwork from and they asked us to chase him up urgently and then threw in the bit about the looming deadline as the reason why they needed the paperwork so urgently.

    I was alarmed when I realised how close the deadline was and decided to make it public as it might just help people who otherwise could have missed it. For example, we have a recent client who bought through MRI at Melbourne who are still being told, by their ex lawyers Legal Independence, that they are unaware of any deadline. We don't know yet what other lawyers involved with South Pacific clients are saying about this so feedback would be good, too, from others in the same boat.

    I'll relay what our lawyers say as soon as I hear from them - but it will be tomorrow at the earliest. You could try contacting a lawyer recommended by the embassy and just get their opinion. Perhaps someone else will speak to their lawyer in the meantime.

    Right now, though, you know everything I know about the situation.
     
  19. Nicola BSN

    Nicola BSN New Member

    Hi again

    Our lawyers are on the ball today, thank heavens. Ok, this is what I got back from the lawyer just now:

    Dear madam,

    At this moment I can communicate that JUST Melbourne is part of an insolvency trial.

    Adelaide, has a request for insolvency registered at the Bucharest Court, and the next hearing is in 08.04.2011.

    Regarding other developments in the same situation please give me one-two days and I will try to give you a complete list.

    Thank you.

    Best Regards,

    It seems you have a bit of time regarding Adelaide and she hasn't mentioned Sydney so I'm guessing they are going down one by one, with Adelaide next.

    So just to make clear to everyone - the deadline of 15th February 2011 JUST applies to Melbourne!!

    Adelaide has filed, however, and has a hearing in April 2011.

    I hope this information is useful and I will try to keep up with the notifications as I get them.
     
  20. MichaelMurcia

    MichaelMurcia New Member

    Adelaide

    I, too, have invested in the Adelaide development and have been trying to get information from my contacts at South Pacific. Unfortunately, Geoff Spears no longer responds and I am not sure if he still works with South Pacific.

    However, I have a reply from Ana Danielescu on the question of insolvency and I copy her reply here.

    'This is not the case, the insolvency procedure was started on another development – Melbourne - because of issues with the Joint Venture partner. Unfortunately I have no news regarding Adelaide, we’re still negotiating and trying to find solutions together with our financing partner. As soon as we have any updates please rest assured we will inform all clients.'

    I am now confused. Surely Ana would be aware of a court hearing on 8th April???

    I have dispensed with the services of my legal advisors in Bucharest and, if Adelaide does not go ahead, I might need a reputable lawyer. Does anyone have any advice and/or recommendations?
     
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