AUGUST 2010 |
www.opp.org.uk
INDUSTRY By Adam Hill
THE Irish High Court in Dublin has ordered an investigation into Flash Developments after evidence emerged that the property company may have been using buyer deposits to fi nance the day-to-day running of the fi rm rather than construction of the project it has been promoting in Cape Verde. It has also emerged in court documents
that the company, which is headed by Irish businessman Ciaran Maguire, may also not have title over the land in Cape Verde where it plans to build a €100 million project. Flash is reported to have taken
deposits from more than 200 prospective buyers, but has not signed any contracts in relation to a proposed development in Cape Verde. When the company went into liquidation in June, Maguire insisted
On the rocks | Legal wrangles surround Flash Developments in Cape Verde
that all deposits were safe and the development would go ahead through another company called the Ciaran Maguire Group. However, documents fi led by the
liquidator KPMG reveal that Flash appears ‘‘to have fi nanced the general running of the company’’ from the
Blacklist threat looms
THE Cyprus Scientific and Technical Chamber (ETEK) has called for the government there to set up a blacklist of property developers who sell off-plan before full permission is granted. ETEK is lobbying for the blacklist
to include developers who make false claims regarding completion and withhold the title deeds. It is also angry with fi rms which, having been refused a loan, remortgage property for which no title deed has been issued in order to fund the development of their next illegal project. It all means that overseas property investors in Cyprus could face a double hammer blow, since ETEK also wants the government to demolish illegally-built properties that are unlikely to be approved under the new planning amnesty. In an effort to sort out long-standing
problems in Cyprus over title deeds and illegal development schemes, the government has established a new system to regularise and offi cially recognise unauthorised projects. Wherever possible the developments in question will be made offi cial.
But ETEK - the statutory technical
advisor to the state - is not happy with this approach and wants the government to send out a clear signal that illegal property developments will not be tolerated. ETEK argues that demolition will not just be a penalty for those who have broken the law but also serves as a warning to those who may consider breaking the law in the future. Spokesman Costantinos Constantis
said various companies were destroying Cyprus’ international reputation and the authorities should reject applications made by land developers who were known to have broken the law. Meanwhile MEP Daniel Hannan has
called on th European Commission to send a fact-fi nding mission to Cyprus to investigate title deed problems.
deposits it received, rather than place them on secure deposit. ‘‘From our initial investigations, it
does not appear that the company has title to land, nor have any contracts been signed by the company,” the liquidators say. During a High Court hearing Ms
INDUSTRY Developer | 13 High Court orders Flash investigation
Justice Finlay Geoghegan drew attention to the two claims and said they should be investigated. The judge then adjourned the matter
for four weeks, to give the directors of Flash time to fi le a detailed statement of its assets and liabilities. A number of people who paid deposits
to Flash for apartments and villas have already sought the return of their money, while others are putting together an action group to try to recover their money, following a 16-month delay in starting the project. Maguire has insisted the project will go
ahead through the new company. He says that the fi rst phase of the development is valued at €100 million and will include a fi ve-star hotel. Maguire says he has a 15-year licence with the Cape Verde government to build on the island, and that he will create a development worth €1.8 billion.
Dallas towers ahead
Construction of a long-awaited 42-storey high luxury residential tower block is underway in the arts district of Dallas, Texas. The $200 million Museum Tower will be funded by the Dallas Police and Fire Pension Sys- tem and the developers are Brook Partners and Turtle Creek Holdings. The project was first mooted in 2007 and will target the sort of international luxury buyers who go for upmarket apartments in cultural cities like New York, San Francisco and Miami. 122 condominium homes are planned in the tower with prices expected to start at about $1 million. The area includes institutions like the Nasher Sculpture Gardens and Meyerson Symphony Center and local paper, the Morning News, hopes that the decision will boost the city’s high-end market. The House, a 28-story Yoo project, is only 10% sold, and a Ritz Carlton tower project is only one-third sold. However, the Museum Tower developers think things will be much improved when it comes on the market in about two years’ time.
Cyprus | getting tough on developers
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