På grund av alla turerna med lägenheten i Elite Park har jag Johan och Håkan bestämt att all information som vi får reda på publiceras här på bloggen så att alla vi som har investerat och är inblandade i rättsprocessen kan följa vad som händer.
Dear Elite Park Buyers,
In our last communication to you we advised that you should have received a legal report from Nursen in respect of your investment in Elite Park and that you would be hearing from us shortly. Since that date we have heard from a number of you as the legal reports seemed to have caused a level of confusion and in some instances some cause for concern.
The purpose of writing to you at this time is for us to give you our opinion on the current situation and bring you up to date with regards to Elite Park.
As a preliminary point, it is worth appreciating the position that you are in now and how that came to be.
The restructure that Ready2invest and Nursen Kose created in 2008 came about because the original developer (Demo) was unable to fulfil his contractual obligations and was under severe financially difficulty. As a result there was a very real likelihood that all investment funds that buyers had committed would be lost.
The primary objective of the restructure was always to protect buyers interests by obtaining titles from the developer that could then be transferred into individual buyer’s names.
The secondary objective of the restructure was then to take further additional titles from the developer in return for buyers paying their balances. This would allow the additional funds and security titles to be used to try and complete all developments.
As at today’s date, all buyers in Elite have been allocated a title as security for their investment for the money that they have sent to Istanbul, achieving the primary objective. This has put buyers in a much better position and more importantly has given buyers bargaining strength that they would otherwise not have had.
The secondary objective has been achieved in part in that the security titles were obtained however using these to raise finance has been hard given current market conditions and as a result the completion of Elite Park has not significantly progressed. This is frustrating for buyers, the developer and the landowners. These security titles have been transferred to those buyers who were not able to get their original titles and the investors in question have been informed accordingly by Nursen.
The frustration has prompted the landowner and the developer to bring legal claims to try and get the titles back from buyers. Nursen is defending them.
It is worth noting that neither Demo nor the landowner want to take this matter to court and both of them have contacted Nursen and us to try and reach a commercial solution. The only reason they are doing this is because of the titles that are held and therefore the bargaining strength buyers have. This would not have been possible without the steps taken by Nursen following the restructure.
As stated above, immediately prior to Christmas, Nursen was contacted by the original developer and the 2 landowners that are involved with Elite Park. They all wish to find a commercial solution to Elite Park.
As a result of their invitation to discuss a commercial solution, our in house lawyer visited Istanbul and took part in a very positive meeting with the original developer and their lawyer along with Nursen. During the meeting the developer outlined a proposal that was made up of 26 points in order to solve all the issues related to all Istanbul developments that they are involved with. These points have now been integrated into a draft document along with 10 clear steps that need to be taken/checked for the solution to be confirmed as viable.
The Basis of the proposal
The points within the proposal that affect Elite Park buyers are as follows:
Block A is entirely completed, this is the block owned by one of the landowners.
Blocks B and E
Demo has stated to us and has subsequently produced a legal agreement confirming that he has used the titles to some of his own apartments within these blocks to barter with a reputable third party, independent construction company to complete the super structure of blocks B and E.
The agreement with the sub-contractor that we have seen, grants the sub- contractor the right to completely finish all units within blocks B and E for further titles that the developer has (in principle) agreed to barter.
This barter arrangement can, in principle, complete all of blocks B and E in approximately one year for no cash due to the new construction company.
Blocks C and D
Nursen is currently holding 15 titles within these blocks as security under the terms of the restructure. In addition Demo has 27 titles in blocks C and D that he currently has in the name of a related party.
The proposal is that these units will be offered to the same sub- contractor (as mentioned above) in exchange for the completion of the entire construction of blocks C and D.
Again, this would complete these blocks for no new cash due to the construction company.
Demo has requested that buyers be given the option to either keep their original titles or take the security titles that were issued within the terms of the agreement.
The way forward
The agreements that were made during the meeting in Istanbul were initially agreed ‘in principle’ and there are a number of conditions that need to be satisfied in order to progress matters, namely:
1/ Demo and both Elite Park landowners agreeing to pause all legal claims whilst we explore the suggested solution.
2/ Firm legal commitment from Demo, the independent sub-contractor and the landowners to the proposal.
3/ Buyers who have not yet paid in full for their apartments will be required to pay any outstanding balances directly to Demo on completion of their units.
4/ Other legal due diligence.
Between Ready2invest, Nursen and Demo we have over the past month been working on the roadmap in order to progress towards the commercial solution. As you may appreciate this is a time consuming and complicated issue and for the moment remains confidential. There are no guarantees that this will result in a positive result until such time that all parties are ready to commit and sign the necessary legal documentation that will support the proposal.
The roadmap that we refer to, determines that all steps should be completed within four weeks, which is when we are likely to be able to provide you with a complete picture of the way forward and when we be able to update you accordingly.
Our purpose for this interim communication at this time is firstly to reiterate that the position that you are in, whilst not ideal, is that you do actually have title to a property and whilst this may be the subject of legal claims is ensuring that the important parties are seeking to resolve all issues with you.
More importantly, positive steps are currently being taken towards concluding the Elite Park project and delivering everybody involved a completed unit with clear title.
During this interim period we would recommend that you continue to liaise with Nursen regarding any legal action and responses she has requested from you. Please be aware that Nursen is extremely busy answering everybody’s emails individually so if you are waiting for a reply from her, please be patient and you will hear from her in due course.
We appreciate your patience and in line with the above timelines we anticipate to update you with a clear way forward by Mid March.