New proposal from Design Resorts…

Forums Cape Verde – Property / Invest Forum Ponta Picuda property owners Forum New proposal from Design Resorts…

This topic contains 2 replies, has 3 voices, and was last updated by  kernock2 9 years ago.

  • Post
    optiontrader
    Member

    Hi Kernock….I am still waiting of the letter from Design Resorts…though I did receive the e-mail from Carla outlining the proposals….we are organising an Investors Group to tackle various issues regarding our investment….e-mail tony@inverforth.com if you would like to be involved.

Viewing 2 replies - 1 through 2 (of 2 total)
  • Replies
    kernock2
    Member

    I have received a call today (followed by email & letter) from Design Resorts saying that in view of the stalemate situation re the court case, they are offering PB owners 3 options:
    – a mortgage over the PB land (ie VO would not be able to sell the land without consent or extinction of the mortgage), giving them 30 months to resolve (no further details)
    – conversion of your deposit into VO shares (the company is unlisted, and as it “has no liquidity on it;s balance sheet” that looks risky – no liquidity = no divis, and you are trading a liability into equity with no obvious exit route. They also don’t say what they value the company at, so you have no idea – it being listed – whether you are getting something with any value)
    – conversion into a Brazilian project being launched by Design Resorts in Minas Gerais (inland Brazil). Essentially you swap your deposit for a plot (sounds like the plot is all you get – not a property on it) on the Golf resort. They have pre-sold the Hippodrome phase (200 plots centred on an equestrian centre) and are getting ready to launch the golf resort.

    option 3 could sound attractive, but caveats: plots are around £100k, so if you have deposited less, presumably they will want you to stump up more cash. There is a 24-month lock-in (you can’t sell on before that). There are tax implications in Brazil (e.g. sending money over there attracts a 2% tax). I have a Portugese investement banker mate who has dealings with Brazilian property developers and he has offered to look into it, so will report back with any findings in Feb.

    Very scant info in the letter of any of the detail of the proposed options, but if anyone gets any further info, would be interested to hear it.

    kernock
    Member

    Thanks Option Trader – have emailed him to join.

Viewing 2 replies - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.