Monday, 16 November 2009
-
New Zealanders Would Not Dream of Investing in Fiji
INVESTORS are being told to steer clear of putting their money into Fiji, where agents are continuing to promote holiday home and resort investments.
"I wouldn't dream of it," said Auckland investor and property commentator Olly Newland as Bayleys real estate began marketing yet another financially troubled resort.
KordaMentha receiver Grant Graham appointed Bayleys to sell the Mamanuca Island Resort and Spa on Tokoriki Island off the Nadi Coast.
Wellington property investor Stephen Petherick, whose own company Petherick Properties is now in receivership, was one of the shareholders in the resort development company which was put into receivership by Fiji's Colonial Bank.
Bayleys is also promoting a major new residential development on Naisoso Island, where it is planned to build hundreds of beachfront apartments, hotels and a marina retail centre.
"Anybody investing their money in Fiji is putting their financial life in their hands," said Mr Newland.
"It's a lovely place to go as a tourist, but the way things are going there are major, major problems," he said referring to the political situation in Fiji with its history of coups and being run by military leader Prime Minister Commodore Frank Bainimarama, who this week expelled New Zealand's high commissioner.
On top of the political instability in Fiji, land title issues were also cause to be nervous.
It might be all right for people with cash and looking to build a holiday home, but he imagined banks would be reluctant to lend money.
The whole Fijian economy centred on tourism and if that fell off because of unrest the country would go back 100 years.
People looking to invest in resort areas would be much better off buying in northern Australia, said Mr Newland.
Bayleys managing director Mike Bayley said the same political situation had existed in Fiji for two or three years and people needed to factor that in.
For all the political issues the sun, sand, fishing and climate still made it a beautiful place to go to and "we're still seeing quite strong interest in Fiji".
The Mamanuca Island Resort and Spa is promoted as a three-and-a- half-star resort.
It has 86 rooms and there is a 25-lot residential subdivision on adjoining land.
Mr Bayley said the resort opened in March 2007 and had accommodation for up to 278 guests, with 12 additional honeymoon suites under construction.
It was built to resemble a traditional Fijian village and facilities include beachside restaurants, bars, lounges, swimming pools, kids club, tennis court, day spa beauty treatment centre, dive and water sport facilities, a 40-seat movie theatre, chapel and helicopter pad.
The adjoining 25 residential lots range from 1500 square metres to 5800sqm and could be used for private holiday homes that could be managed by the resort.
The resort stands on 16.6 hectares leased from Fiji's Native Land Trust Board and the island is about 15 minutes flying time from Nadi Airport.
Mr Bayley said the resort was trading under its own name without any branding and there was no management agreement in place.
It had exclusive access to a wide beach frontage and was equipped with its own desalination plant, waste water treatment system and diesel generators. Tenders close on December 3.
The sale comes just two months after the $300m Hilton-managed Fiji Beach Resort and Spa on Denarau Island was put into receivership.
More than 200 investors in that resort, most of them New Zealanders, are owed rents on their villas and studios.
Bayleys is also promoting the sale of the first 114 waterfront residential sections on Naisoso Island, just across Nadi Bay from Denarau Island.
The sections range in price from $337,000 to $1.4m.
It is being promoted as more exclusive than Denarau and Bayleys report more than 80 residential sites are already under contract.
Developer Bob Lowres has plans for a second stage construction of 170 beachfront apartments followed by the building of four and five star hotels, a retail marina centre, terraced villas and a health spa.
Mr Lowres said Naisoso was different from other troubled Fijian developments.
It was financed by ANZ and the Fiji Development Bank, was on freehold land and stage one was a residential lifestyle development.
"We're not pushing this as an investment opportunity to hold on to for a few years and then on-sell," Mr Lowres said.
DOMPOS 11-07-09
-
email
- sent 0
