capeverdeinfo.org.uk

Allison Barlow · Owner Joined: 19 Oct 2006 Posts: 24 Location: Hampshire

Does anyone have any current reports on the progress being made at Paradise Beach? Various rumours abound.....disputes between builders and CVD?.....will it be completed by March 31 deadline? (highly doubtful from what I've seen) Go slow on building works? Lack of sand?(on Sal???)
James, you seem to be familiar as to the solvency of various companies, do you know how the accounts are looking for CVD? I'm only asking this as buiders in general appear to be suffering more than most in the recession.
All rather unsettling for those of us who have invested.....Any info would be much appreciated. Thank you.

james ensor · Posted: Wed Nov 05, 2008 3:44 pm Post subject:

Allison

It is dangerous to discuss the solvency of a company on a public platform and I cannot do so, even if I knew the situation accurately, which I do not. Paradise Beach and Vila Verde seem to be the two developments on Sal that are showing the most rapid progress. You can see recent photos on www.capeverdeinfo.org.uk/property_paradise_beach.htm. These will be updated as soon as more recent photos can be uploaded.

Like every development on Sal, the ban on sand extraction coupled with port problems at Palmeira have driven completion schedules out of the window. But an English surveyor resident in Murdeira is in charge of this work and he is certainly overseeing it on a daily basis.

Several of the buildings appear to be externally complete, but the interiors may be waiting for imported components, and windows seem to be missing on some. Cape Verde Development is financed by a number of investors from Clonakilty and Cork, brought together by Tom Sheehy, who has a furniture business there. As it is an Irish company you can check its financial health on the Irish equivalent of Companies House. The local partner is Jorge Spencer Lima, who is also a builder. I have not asked the project manager about any problems between the parties and would not expect him to answer given that he has to make his living in Sal. If further finance is required, then I would expect Tom Sheehy to be contacting his Irish partners. There are reports that he is in the process of doing that.
_________________
James Ensor Moderator of the forum and one of the architects of www.capeverdeinfo.org.uk

seamus monroe · Visitor Joined: 22 Sep 2007 Posts: 147

Sunday Mirror in Ireland reports further delays and suggests cash issues.

Allison Barlow · Owner Joined: 19 Oct 2006 Posts: 24 Location: Hampshire

We are purchasing a villa with two friends at PB who are currently in Sal and were taken to the PB site today. The agent informed them that all work stopped in January due to 'contract problems'. Also they were told the hotel had pulled out!!!!!!!!!!! Can anyone shed any light on the current situation? Does anyone have any information on how they propose to resolve this? (no solutions forthcoming from agent) They are only on Sal for a few more days so quick replies would be appreciated for me to contact them with any info.........thank you!

seamus monroe · Visitor Joined: 22 Sep 2007 Posts: 147

Ireland is bust and to be rescued only by the Master Race. A good many property businesses in Ireland look likely to be going the same way. But will they be rescued by the hard men from across the water?

You can check the accounts of Cape Verde Development of Clonakilty on www.solocheck.ie for a few euros on a credit card. Hopefully this will provide you with the reassurance that you need and counter the story in the Irish Sunday Mirror of a four million euro deficit.

It is high time somebody checked, since the websites seem to be full of short-sighted blarney when it comes to Paradise. There never was a firm contract for a hotel. But to get its special aldeamento turistico status with tax benefits, one will be needed.

whitelaw hunt · Visitor Joined: 03 Sep 2007 Posts: 230

Nikki Beach considered the site for a brunch/nite spot installation. The Miami based company now sells apartments adjacent to its restaurants to Americans and rents these out for them, by the week. It has transferred its attention to Fortim at Mindelo, This is odd since Delta will fly to Sal and it costs another 300 bucks for Mindelo. Odder still the Nikki website has a sold out moniker on Fortim. Maybe Gary Sims knows something that the rest of us do not?

Anita Mussolini · Fabricator Joined: 21 Jun 2008 Posts: 33

The Tribunal in Ireland give two partners €11m for shares in next project Murdeira Beach Resort. Thomas Sheehy must find how for to pay this money to partner. Italian project Cotton Bay also next to Paradise Beach have stopped all work just like in Paradise Beach. Mariani have no money to carry on until Credit Crisis ending, I think. Investors in Italy no want to put more money into Capo Verde.

Maybe same thing with Thomas Sheehy in Ireland. How to find €11m if banks will no more lending money on big project. Thomas Sheehy I am thinking is now living in Portugal. Portuguese builder has stopped all work in October - perhaps no money to pay workers. Nobody is saying nothing in Sal but this must be possible explanation for no working. Rutger, the Hollander in Santa Maria , he is saying nothing to nobody. Maybe he is knowing nothing.

I no think any easy solution for this with no money. All developer in Sal is having big problems even Steffanini who is the bigggest and know Capo Verde the best of all, since 10 years. Government can no help as it have no money and people in Capo Verde is too poor to pay for houses for rich Europeans.

"Que seja assim" as they say in Capo Verde.

Allison Barlow · Owner Joined: 19 Oct 2006 Posts: 24 Location: Hampshire

I had been told by Rutger that the finances for the various sites were independent of each other and could not be transferred from one development to another. Are you saying this isn't the case and that money from Paradise Beach accounts would fund the Murdeira pay off?

Do you know why Tom Sheehy was taken to a tribunal in the first place and why he was ordered to pay so much money? Does this mean he is no longer a share holder in Murdeira Beach?

whitelaw hunt · Visitor Joined: 03 Sep 2007 Posts: 230

What do you think?

seamus monroe · Visitor Joined: 22 Sep 2007 Posts: 147

Cape Verde Development files accounts in Ireland. These are available from a website. You should obtain them from this or from Rutger. He should provide these as you are an unsecured creditor on a low priority.

The failure of FM Developments from Scotland, the Boa Vista developer, shows you how difficult international property is right now. Investors there are left without title and with incomplete properties. The rights to their apartments belong to the Receiver who will seek to sell them for whatever he can get to pay creditors. There is no protection there of seperate accounts or seperate companies as almost the entire group is in receivership.

Cape Verde Developments has two projects on Sal, Paradise Beach and Murdeira Bay and one or two more on Sao Vicente. Of these only Paradise Beach yet has any buildings erected. It also owns some apartments in Murdeira and the May 0`Leary and Turtle Beach buildings in Santa Maria.

Each development has been financed by up to half a dozen partners. In the case of the Murdeira Beach this included two Cape Verdeans and four Irish investors. Two of the Irish and one of the Cape Verdeans have now pulled out. The Irish Commercial Court has valued the investment, which does not yet have any building, and ordered the two remaining Irish partners to pay €12m to the two departing partners. Part of this payment is in default. That will mean that The Irish Commercial Court can place receivers to recover the debt.

The judgement is against Tom Sheehy who lives in Portugal and John Cahillane who lives in Ireland. John Cahillane wants to pay off the debt with his shares in Murdeira beach, effectively requiring Tom Sheehy to pay his share of that debt also.

This leaves a situation where the cash-flow of Cape Verde Development and any assets that it is able to sell must be used to pay down the Court debt before Receivers are appointed to the task.

Here is where the accounts of Cape Verde Development can assist you. Add up the net tangible assets, such as cash in the bank and subtract €12m ( it will be increased by interest charges) plus any payments that are due to other creditors as recorded in the accounts. if this amount is negative you will understand the problem faced by Tom Sheehy.

You can only surmise at what he may choose to do to extricate from this situation. The investors behind Paradise Beach are also a mix of Irish and Cape Verdean. These may be some of the same people as the backers of Murdeira Beach but in a different mix. What is their attitude?

What assets does the company have that can be sold to pay off this debt? Check whether May O`Leary is doing good business. Ask - you may not get an answer- what is the recent sales rate on new properties by the company. Check out the flats at Murdeira, in the big building at the back. Are they for sale? Are they empty?

Seek out the project manager who lives in the villa at Murdeira with the swimming pool. Ask him if he is still working? Ask him if he is being paid? See whether the Hummer used by Zinho Fonseca, and sits by his house in Murdeira which belongs to Cape Verde Development has been sold? Check whether there have been staff redundancies at Cape Verde Development in its Sal headquarters. Is the general manager still there? Have others left? If you can find someone who has left, check whether he was still receiving a salary?

You cannot expect a company that is facing a big financial payment to seek to broadcast its problems or to disclose the solutions that it is seeking. Invariably employees of a company in such a situation will offer soothing words. But a little forensic work on your part could give you many of the answers that you crave. If you do not read accounts, employ an Irish accountant to advise you. Then look at your options.

BrianMcmonagle · Visitor Joined: 04 Feb 2009 Posts: 1

Hi Seamus
Good post... couple of questions.
have you done the balance sheet calculations?
have you bought on PB?

Brian

seamus monroe · Visitor Joined: 22 Sep 2007 Posts: 147

It has been peculiar from the outset. Initial photos on the developer website showed drawings of buildings erected at Murdeira, which are nothing like what has been built now and there were signs of dissension amongst the backers from the beginning.

james ensor · Posted: Tue Jun 22, 2010 9:33 am Post subject:

It looks as though the resort, with a change of management and newly released funding is now set to complete in 2011.
_________________
James Ensor Moderator of the forum and one of the architects of www.capeverdeinfo.org.uk