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Need Help In Hurghada Property Development 20 flats 350m2 gone wrong

Discussion in 'Egypt property' started by mgsteveb, May 30, 2008.

  1. mgsteveb

    mgsteveb Banned

    Hi. Help in Hurghada needed.

    I am looking for urgent help in a property development in Hurghada of 20 flats that has gone horribly wrong. I will outline the problem and if there is any help or advice I will be eternally grateful

    The property is 20 flats in Alahyaa of 350m sq. I am an Investor for extra land in Alahyaa and the English Partner was the original Property developer and did all the deals in Egypt. However, the original Egyptian builder was a con man and we have been dealing with him in the courts for the past year. This is due to come to a conclusion on 20th June.

    As part of a deal the Egyptian builder signed over all land and buildings to me and a friend of my English business partner as they were not there. All that is outstanding is £40, 000 from the Egyptian builder (£25,000 Which was my original investment for extra land and £15,000 for another by Sand beach).

    To put it simply I now Part Own all the Original Buildings of the original Property Developers, They own nothing but are trying to get the cash from the Egyptian for the other 2 pieces of land from the Builder by the Courts.

    The English Partner I have is rather naive and got us all into this trouble however I am now being told that they have a deal to sell the land and buildings for £100, 000.
    I take my £25k and skip off into the horizon.

    I can’t help but feel I am being conned yet again! I have a sneaking feeling that the land and buildings are worth more and if I do sign over the land and flats, the partner will have the money in their account being the only one with an Egyptian bank account. So I am leaving myself open to be left with absolutely nothing. Also they could end up with the Land, Flats and £40,000 we are claiming from the builder.

    I am looking to go out to Hurghada in the next couple of weeks and sort this out myself. I need help opening an Egyptian bank account and maybe a fellow brit to guide me through all the right steps to take. Also maybe someone knows how much it should be worth and can help find a buyer. I just want everything above board, in black and white and not the way my original partner has been doing business. You know met a guy in Ali Baba’s and he knows this other guy etc.

    So if anyone can help me, this has been going on 18 months now.

    My mail is mgsteveb at hotmail dot com
    Tel 01963 250506 or mob 07971 852573.

    Thanks for your time

    Steve.
     
  2. queenie40something

    queenie40something Senior Member

    Hi sorry to hear of your problems. To be honest I think the best advise anyone can give you is to speak to an Egyptian lawyer.

    Good luck.
     
  3. please go and talk to zeiad in the legal thread he is the best one to help you
     
    Last edited by a moderator: May 30, 2008
  4. NeilHollingsworth

    NeilHollingsworth New Member

    I agree George, Steve go and talk to Zeiad.
     
  5. dave99

    dave99 New Member

    What do you want to get back !!!

    Hi Steve

    Not a new story I'm afraid to say.

    Have you decided what you really want to get out of this mess.

    Unless you want to take on a near full time development / selling activty that you had not planned for then maybe you would be wise to "cut & run" if you are assured of your original money back.

    If you think there is much more to fight for then you could be many more months before you get anything.

    Impossible to get an idea of value of the plot / building etc without an exact location and photos of the building state etc. However if its a good position and is at least 50% completed I'd say £100,000 may be a little of low valuation, but to get much more in a fluid market would mean a bit of real selling effort to find a developer willing to take on and complete someone else's building - not something I would like to do since I'd not be able to see the foundations etc.

    I would guess that 20 flats in only 390 sqm means no space for a pool and hence likely to be built to sell to local people rather than tourists, in which case the potential profit if you carrfy on to completion might be lower than for a bigger site with more potential.

    .
     
  6. mgsteveb

    mgsteveb Banned

    Hi. The flats are 90% complete. One block away from the beach. So I think £100,000 is a little low. There are 16 finished so even at 10K each thats £160, 000. What do you think?
     
  7. mgsteveb

    mgsteveb Banned

    Hi. How do I find Zeiad?
     
  8. Lsab

    Lsab New Member

  9. dave99

    dave99 New Member

    Estimating the value

    Hi

    Maybe with a more info we can get a more realistic vaulation.

    - is it 5 floors (4 x 5 units each floor or 5 x 4 units)
    - how big (sqm) is each unit
    - do they all have balconies or are most units enclosed by other buildings
    - is the ground floor built as apartments or shops
    - is there any garden space or pool
    - is the roof usable as a terrace
    - what do you include in the "finished" apartments
    - internal & external doors & wiindows / kithen units / bathroom fitted
    - ceiling fans / air con / electic points / sat TV & phone points
    - tiled floors / tiled bathroom / plaster & painted walls
    - is the whole exterior finished
    - is there a lift
    - how many sides of the building are open (front only / 2 sides on a corner)
    - is there a front door yet
    -


    Who has paid for all the building work so far
     
  10. mgsteveb

    mgsteveb Banned

    -

    It's 5 floors with 4 units and a lift

    Large iron gate front enterence

    From my Visit last year they have 2 beds, large lounge, kithen and a bathroom. Dont know the size. I have pictures if you have an email?

    There is a road on 2 sides and buildings on the other 2.

    Ground floor is appartments

    Internal and external doors, windows fitted. Plastered Painted and Tiled bathroom kitchen and floors.

    Balconies

    Small garden.

    2 streets away from the beach

    my mail mgsteveb@hotmail.com
     
  11. dave99

    dave99 New Member

    valuation

    Hi
    Sounds to me that this is undervalued big time.

    Who has paid for all the build work - is the "offer" to buy based on a NET amount after the build cost.
     
  12. queenie40something

    queenie40something Senior Member

    Hi your queries ref bank accounts have been moved to the existing thread http://www.totallyproperty.com/egypt-property/7988-lawyers-bank-accounts-payments-agencies.html
    If you do a search you will be able to find if there are existing threads that you can post into instead of starting new ones.

    You can upload pictures here. Go to bottom of the post to additional options, click on manage attachements and a pop up will appear where you can download and post the pics. Hope this helps.

    Regards
    Alison
     
  13. queenie40something

    queenie40something Senior Member

    Hi Steve - did you manage to get out and sort all this out? Any news / updates?

    Regards

    Alison
     
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