Gardens of Fedala - Marrakech

[RobT]

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]

Ready 2 Invest Morocco

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]

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]

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]

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]

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]

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]

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]

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]

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?

 

[nettle]

I'm with you RobT. This should all have been made water tight by R2I??? If we don't take out this security then are they saying that the developer can walk away with our money if the development falls through?

No smart thoughts feeling very naive having put so much trust in R2I.

 

[Marrakech123]

Gardens of Fedala/Salama Valley 2

We would be interested to hear if anyone has received any further information since last November regarding this development.

 

[nettle]

Just received an e-mail today saying there is a problem with the process of putting a chrge on the land as we / R2I do not have original copies of the contacts. And asking for more money to continue with this process of putting a charge on the land.

Not sure of the benefits of this and will be contacting sorry attempting to contact R2I to try to get someone to answer my questions.

 

[Marrakech123]

Salama Valley 2 - yes would definitely like to connect.

We're debating what to do at the moment but understand another update is due shortly from R2i regarding plans for the site.

 

[All at sea]

R2I have told me that the Marrakech devopment will be split in two. In addition to the original land they have a plot closer in to town (where did that come from and where did they get the money?) which is more suitable to smaller units similar to the ones bought. So us original investors are now funding their jolly on the original site where they plan to develop high end larger villas, and move people who don't want to pay the extra for a large villa to the site closer in to town. As this new site is closer to amenities it won't have much, i.e. no hotel (confirmed) and probably no spa etc. Just another bland development. My low opinion of R2I just got even lower. Of course the rental programme has gone, together with the fully furnished apartment. And they tell me there is nothing that can be done other than wait as they do not have the free cash to repay investors. This is not strictly true, legal action is still an option. Is anyone else following this route?

 

[Marrakech123]

Do we know how many investors like ourselves there are ? It would be helpful if we could join a group/committee. We feel that R2i should have a meeting to explain the proposed plan to us all as a group. We were not aware the rental guarantee and furniture have been removed from the deal (this has certainly not been communicated to us) only the change in the site plans. We also can't see how it would be legal for them to simply move us to another development as we have signed for Salama Valley II. At least we know this site does have planning permission. The other site may be further away in terms of planning permission and if it doesnt have facilities not only would it be less attractive but if/when would it ever be built?

 

[All at sea]

There were aiming to send an update before the end of Feb, but they also said that in December and January. The aim to do both simultaneously I think, but as the original site is where they will be making the money through high end villa sales I can guess where most of their efforts will be concentrated. What makes me even more annoyed is the tone of their communications which implies they are doing me a favour and I ought to be grateful to them...

 

[nettle]

Legal Action??

Finally got to speak to someone regarding Marrakech last week. Confirmed rental agreement no longer there apparently trying to get the management from a riad in the city to manage it!! so may be some income but not sure how this would work. apparently figures coming out soon. As this was one of my main reasons for investing I'm considering getting my investment back.

Told they are happy to refund money but can't at moment as not enough funbds in pot??? All sounds like b******S to me. Have no legal experience but if they can no longer fulfill the contract i signed which they can't on any number of counts then they should refund now!! Had enough and contemplating contacting Watchdog!!

As regards the Fes development still waitng for someone to contact over this!! Over a two weeks wait now!! No suprise as communication and transparency not in their company policy it would seem.

 

[All at sea]

I couldn't agree more Nettle, this is vastly different to what we signed up to. As for having no money, the story I am told is that our funds are tied up in the current land, and that more funds are required to complete from new investors. This sounds plausible, but I guess it will be impossible for anyone to check if the company has any cash or not. When new investors start putting their money in, I will hazard a guess that this will not be used to pay us out, but instead used first to fund the development, any free cash later on could then be used to repay initial investors x years down the line. This question will supposedly be answered in a Q&A from R2I. In effect we are funding R2I's development and may only get our cash back at the end. Great for them, we take the risk, they take the return. I was told that I could try and flip whatever property they deigned to assign to me to get a return, what world are they living in!

 

[veejay]

I'm in the same position regarding SV2. My patience has now run out and am anxious to get my money refunded before R2i go out of business. Are any of you considering taking legal action via Legalex? Have tried to private message everyone but can't seem to do that at the moment. Has anyone contacted any other solicitor to seek advice? Would be very keen to find out what action you're all thinking of taking.