Originally Posted by anthonyday

Dear All,

Firstly, I do not work for Anthony Seddon & Co nor am I under any retainer or commission as has been suggested. I have not even used their services! I am not going to get into this needless banter arguing points which clearly cannot be agreed on for reasons I have previously stated. I resent comments stating that I may in anyway be naive. Having dealt with IPI since early in their Zafarana development, having purchased there I have no problem in investing in their developments. This is not naivety, it is many years of experience in this field. I hope that those negative people go on to be as successful in this field as I have been fortunate enough to be.

Tony

Originally Posted by Peter Mitry

In good faith and believing this to be a potentially superb project Egypt Real recently listed this on our website.

However, we have been advised in the past 24 hours that the proposed constructors are not the owners of the land and that the land owner has recently died leaving the land to his two young daughters who are minors.

If this is the case how can any constructor have a legal right to build on land which is not his and where the legal owners are young children?

This is what Due Diligence is all about. If the correct documents are in place then potential buyers can move forward without these sort of worries.

If no evidence is forthcoming which disproves what we have been told then we will need to remove MABR from our website until this issue is resolved.

Originally Posted by Jacky Hep

Hi Tony

I appreciate your points of view; I am a new member to this site.

One of my concerns for the MABR project has been that the only comparative project to base an opinion on about IPIs diligence is Zafarana. I came to be interested in MABR out of an interest in Zafarana but finding I was too late to invest in that. That project is still not completed and looking at current estimates find it difficult believing it will be ready by the second half of 2009 let alone the first. Had it followed projections, perhaps with a month or two delays, I would feel more comfortable about the MABR project.

Have you complete faith that Zafarana will be ready for you in the time currently specified?

Adding to the above, I was told when I signed for MABR a few months ago that the build would begin, a bit later than originally specified, in June. I now find I have to complete contractual arrangments and it is still not begun, the earliest I am told is end of August/early September; so I need to sign on faith that the latest information given by IPI is correct, when it was not before, will it change again (as Zafarana) - not confidence building.

I believe about 60% of MABR Part 1 is 'sold' so wonder if that may affect build - are monies collected sufficient to progress the build according to an existing plan or not and will sales influence future dates and committments to purchasers - the impression I had been given by brokers when I first registered and paid deposit was that MABR part 1 was almost sold out.

Although IPI may be highly trustworthy, and I have no reason to think otherwise, the lack of solid information and certain safeguards is disconcerting; had the build started, had it almost sold out, was the escrow account guaranteed by a major independent institution, were all contracts that same (if as some say they are not), was due diligence able to provide greater advice on IPI financial circumstances (especially with Zafarana under way and possibly taking a heavy committment from IPI), were there other successfully completed IPI projects to base success on - theses things would assist us all to move forward, they seem to drive the current discussion here; not that people are dissenting, as I am sure that like me they wish to see a successful MABR (and like Zafarana it would be a credit to IPI as they are large exciting projects in a most beautiful part of the world) but there are genuine concerns due to issues such as those above especially for people like me who are starting on the purchase road.

Originally Posted by anthonyday

Yes I have no reason to believe that it will not be finished. In any rate I am not overly concerned about this as it is an investment, and given the penalty payments for late completion, it makes no financial difference to me.

Again, I don't really see why this would be of concern. I'm not worried about when they start, only when they finish. At this stage of construction it will only be ground preparation anyway. I have bought other properties over a year ago and construction has only just started on these, so this is certainly not unusual.

If you look at when payments are released from escrow as per stages of the build, only small percentages of the funds are being released each stage so with 60% sold, which is very quick I might add, I would suspect that there would easily be sufficient funds for construction.

One more point regarding the financial position of IPI. In the DD report it states that they have €1.2 million or so in reserve which is a significant amount of money considering they have already paid several million for the plot. Zafarana shouldn't create a financial strain as the resort has long been sold out and therefore all funds are in escrow for construction. This is a cash funded development meaning that there are no loans for construction finance on the development. This is quite rare as developers will often borrow huge sums of money against the resort. This helped me at least with both projects, as I know that without the constraints of interest repayments, banks being involved etc my investment is safer.

Tony Day