12 Dec 2008 5:17 PM:
Hi,
I only discovered this site this week. I have just received the following email from IAP Global so thought I would post it on in case some haven't got it:
Dear Clients,
Developer: San Antonio
Developments: La Cinuelica, Balcones Del Valle, Fortuna Golf and Pinatar
I write further to the update on all Spanish purchases, which you will have received from Tony McKay on 13th November, 2008.
As of yet, IAP Global Ltd and IAP Spain have been unable to reach an agreement over the management of Spanish purchasers. Rather than continue to ‘hold off’ on sending any updates to purchasers, IAP Global Ltd have decided to run your development progression as per any other UK or International development; ensuring that you have full information about any progress (or unfortunately, the lack thereof) on your developments, and allowing you to make conscious, informed decisions about your investment.
As IAP Spain still considers you to be their members and currently also wish to run your development progression, it may mean for the short term that you receive updates from both organisations.
We appreciate that this may be confusing, but would encourage you to take advantage of all information and use it for your benefit. We assure you that all updates from IAP Global Ltd will be ‘full disclosure’ and will place the ownership of decisions back with you, the purchaser.
We would like to begin by offering you our views on the San Antonio developments, as listed below.
The Developer - San Antonio
We have recently become concerned about the viability of this developer, and have tried to contact San Antonio directly a number of times to ascertain the current situation on all of their developments. We understand from independent (unconfirmed) sources that San Antonio is in financial difficulties; a number of months ago they started to issue post-dated cheques and those cheques are now being presented and are not being honoured (by their bank). To this extent, we have also started to review the position of the Bank Guarantee with independent advisers.
For your quick reference, San Antonio is involved in the following schemes:
La Cinuelica – This scheme is completing, and the majority of units have already received habitation certificates. There is no concern currently about the future of this resort.
Balcones Del Valle (Los Balcones) – Works have stopped on this scheme and clients are being offered the opportunity to move their investment (in some instances) to La Cinuelica. We understand that a number of clients have already received the details of this offer directly from Plus Advisors – the conveyancing solicitors.
Fortuna Golf – This scheme commenced construction in 2007 as planned, but works on site appear to have stopped. There is currently no Infrastructure or Golf Course marked out, and it is thought that the scheme will not be completed in the foreseeable future.
Residencial Pinatar – Construction of this scheme has not yet commenced.
Your Options:
1. Wait and see what happens
Purchasers can wait for communication from the developer, or their legal advisers, but we suspect that nothing will be forthcoming unless clients instigate the action. We have written to San Antonio and have asked for an update, but to date we have not received any of the requested information. We intend to write to all of the Conveyancing Solicitors on your behalf, to ascertain if they are aware of any issues however it is unlikely that we will receive this information prior to the New Year.
It may be that San Antonio only wishes to delay completion of the properties, which in the current economic and financial climate will certainly help them. This may also help you as the current ‘credit crunch’ has meant that the availability of mortgage facilities is very restrictive. As interest rates reduce over time we expect this situation to improve, so a delay in build (provided it does get built) may be advantageous to both parties.
2. Consider switching or ‘flipping’ your contracts
In our opinion gaining something now - e.g. another property - rather than accepting an ‘unknown outcome’ may be the best result. You may believe that you have a legal case against San Antonio for ‘Specific Performance’; however any litigation is going to be costly and time-consuming. Past experience with the Spanish legal system would indicate that any ‘breach of contract’ action may take up to 2 years to resolve.
In conjunction with some local, well-established Spanish estate agents, we (IAP Global Ltd) have started looking at alternative sites which may be suitable as a replacement investment. The offer from these developers is reasonably straight forward; in return for your contract to purchase, they will recognise the deposit that you have paid to San Antonio against a property on one of their developments. In simple terms, the 30% deposit you paid to San Antonio would be ‘credited off’ the new purchase. We will be forwarding you details of these various projects in due course.
In Summary
We understand that this is information will be disappointing and may confirm your worst fears, and you will of course want to discuss your options with your partners. This is clearly a difficult and complex situation which none of the parties involved would wish to be in. If you wish to discuss this letter please do call us on 020 8541 2900, but please understand that our resources are limited and it may take some time to return your call.
We intend to arrange, at our cost, a number of meetings around the UK to discuss the above during the first weeks of 2009. This will give all clients an opportunity to ask questions and hear from your IAP Global Ltd representatives, as well as receive further information on the potential replacement investments. We aim to have confirmed information about the status of San Antonio which will also be presented at these meetings.
Thank you all in anticipation of your continued patience and understanding. We will speak with you all again very soon.
Kind regards,
Anna
Anna Thomas
Manager
Client Services & UK Sales Progression
IAP Global Ltd
Second Floor, Eve House
Adams Walk
Eden Street
Kingston Upon Thames
KT1 1DF
Community thread:
Anyone else bought an of plan property at FortunaHill Golf and waiting on completion ?
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