Marsa Alam

[Alan Cockayne]

Using excuses

We have always found IPI to be a good company to deal with and they appear generally to have the client's interests at the forefront. This advice therefore came as a shock and speaking to some of my colleagues we believe that they are using the technicality of 'force majeure' to try to mitigate any potential loss if tourist numbers fall. Of course, during the last month they have fallen dramatically but most world airlines are resuming flights to Egypt from next week so most of us here are not expecting the negative influences to last more than three months.

I am puzzled that they have stopped building; here in Hurghada construction has continued as normal. There appear to be no shortages of materials or labour so it is hard to figure what the problem is. I think that all buyers should look very carefully at the contract and ask your lawyers to find out why this statement was necessary, given that very little has changed in practical terms, other than a short term drop in tourist traffic.

Peter is perfectly correct.
As agents we know the real truth about IPI and its Egyptian partners Al Sery for MABR.

The internal conflicts affecting 400+ owners in Zafarana with EMR (El Mohanad For Real Estate) and new clients in Marsa Alam Beach Resorts are not, repeat not caused by an Act of God, or are they delayed by force-majeure blaming recent conflicts that are delaying materials, labour shortages or cash-flow.

On the contrary, they are an excuse for the inept and constant manipulation of ownership positions within EMR and El Sery that has brought the TDA licenses into dispute; which has a knock-on effect on the whole building programme and its credibility to work with IPI the Dutch marketing and construction partners.

There are some things more important, underlying this....

We have seen recent events overthrow the very figure-head that masterminded these land-grabs and family share-deals and it is innevitable that Egyptian partners will be looking at consolidating their interests. If that means lying or covering up mismanagement I'm sure they will, big style. The truth is it will be hurting and they want to pass the buck. IPI are not playing their game.

I'm instructing clients to complete signiture validity at all costs to ensure legal ownership. Whatever comes out of the Act of God debate in the future is purely political as tourists will be back in numbers in no time. Arbitration will settle penalties and late delivery compensation, I'm sure.

But I assure readers that the Hand of God will come down very heavy on those that think they can continue cheating and lying to investors and that's a promise. Hopefully the next administration will stop these practises.

Over the years the damage done already by unscrupulous developers and poor agents has reduced potential sales by 80%. On top of exposures, more corrupt actions and activities will cripple the industry altogether.

My advice to IPI and Egypt as a whole is, get your act together boys. The writing is on the wall for some Egyptian businesses. Our customers are sick of excuses.


Alan Cockayne.

 

[East London]

This sounds like to first happened in Zafarana, we were told that IPI will defer the guaranteed rent which was promised{ I did receive the first one in 2009{ after buying in Sept 2007, will were then told that the guarantee rent could not be paid and we were given another date for payments which I believe the second payment would have been in 2012. We all gave my support because we did not want the Resort to fail. We were given a date by IPI and EMA FOR June 2011 for the resort to be finished, but for most part of 2010 there has been no building work. EMA have held IPI to ransom but also IPI should have had there eye on what build was going and the quality. I hope things work out for you guys in Marsa

Thanks Alan for you input I will look into where I stand now.

 

[chriscross34]

Peter/Alan as ever, i and i'm sure i speak for fellow investors appreciate your advice/words of experience as ever!

Alan, presumably the signature of validity can still be sought even before the property is actually built?

Thanks
Chris

 

[realinvestor]

I do agree that long-term the potential for property is great in Egypt but even if as you suggest that SIGNATURE VALIDITY IS IMPLEMENTED to ensure legal ownership, the problem is that IPI cannot be trusted to deliver and will use any excuse to delay any penalty payments etc. Even if things go back to normal in Egypt by year-end, it is highly unlikely that IPI can complete Marsa Alam by even end-2013. Noiw this will be 4 years late compared to their original promised and contractually written dates ( end-2009). Furthermore they have been very economical with the truth and this borders on deceipt. For example in their marketing they highlighted that they HAD ALL PERMITS APPROVED, whereas now they claim that some of the permits have not been issued. The escrow system is in shambles and again we were all led to believe that the escrow will be independent. In reality the only person in charge of the escrow is the CEO of El sery and a 100% IPI-man. This is a complete conflict of interest. Has anybody tried to contact the escrow manager to make sure the accounts are in order and that payments have only been released upon each completed stage. Again, my UK agent has told me that unlike what was promised in contract and marketing materials ( that an independent third party will verify escrow payments),the ecsrow manager is releasing funds only upon some photographic images. So who does the quality checks? I think it time MABR investors should now reassess whether IPI is in major breach of contract and take action accordingly.

 

[chriscross34]

Hi real, do you have an investment in Marsa Alam Beach resort aka Pure Wellbeing Resort

 

[realinvestor]

Hi real, do you have an investment in Marsa Alam Beach resort aka Pure Wellbeing Resort

Yes, bought it in 2009 and was one of the first investors who also bought in Zafarana

 

[zafnaf]

Hi Realinvestor are you a member of MONDI?

 

[realinvestor]

Hi Realinvestor are you a member of MONDI?

not yet but my friend is so I am aware of developments there

 

[LOUKIC]

Peter/Alan as ever, i and i'm sure i speak for fellow investors appreciate your advice/words of experience as ever!

Alan, presumably the signature of validity can still be sought even before the property is actually built?

Thanks
Chris

yes. You can do the signature validity just after exchange of contracts and before the property is built.

 

[Alan Cockayne]

correct LOUKIC... providing 40% or more of the value is transferred to validate a purchase. It is important you do or you have little proof of ownership.

Alan.

 

[chriscross34]

Message for Zeida Yehia

Hi Zeida, you kindly assisted myself and fellow investors when i signed a contract to purchase at the IPI Marsa Alam Beach resort now known as the Pure well being resort.

Would you be able to answer a couple of queries?

1) Do our contracts need amending to reflect the change in name of the resort
2) I noticed the warning you gave re Zafarana due diligence. Just for some comfort, you kindly reviewed the due diligence for Marsa Alam beach resort and checked our contracts, as far as you understand is there anything to be concerned with MABR/Pure Wellbeing?

There is an ongoing concern regarding the delay to the build and the developer has cited force majeure due to recent events and halted any penalty payments from 1st February 2011 onwards. Whilst i understand that the recent instability may have an effect on securing materials and labour on a fixed price basis, how do we know as investors that IPI are not pulling the wool over our eyes by extending this longer than is actually necessary?

Thanks
Chris

 

[realinvestor]

hi fellow mara alam investors. I have just found out that there is a investors group being set up for investors who used the UK lawyers (that did the due diligence for zafarana). I think it is the same lawyer that did the due diligence for mara alam and IPI literature heavily promoted this lawyer as the one who said all IPI projects were good. Perhaps we can communicate with this group if we all feel that the lawyer did not do a proper DD for MABR. The email is

[email protected]

Hello fellow investors in MABR

Has anyone heard anything about MABR? Apparently there seems to be significant problems there and investors now need to group together to save their investment.