Mbi

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ashpan
ashpan Posts: 335 Forumite
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in Savings & investments
i invested in a care home development company a couple of years ago, then known as MBI Property Investments. I Purchased a room in an off-plan care home with the idea of a return on my investment commencing in december 2019. They have recently written to me saying that the company has now been split into 3, with the care home i was investing in being transferred to a leisure company that speciaised in selling hotel rooms. They have told me that they plan to sell the care home i invested in as soon as its built as the new CQC guidelines mean that the size of the rooms wont make it financially viable. I have three choices currently, transfer my investment to a hotel room in the next 4 weeks and they will add another 10k to the investment and i will get my returns 12 months early, leave the money in the off plan care home or sell my room in the hotel once ive purchased it. Im pretty confused and disappointed with the whole situation as how do i know that they will again change things when the time comes to realise my investment. I need to know if i can get out of this as they havent kept their side of the deal ie by constructing a care home and having my room up and running to be able to offer me a return on my investment.

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  • Zanderman
    Zanderman Posts: 4,683 Forumite
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    This article from the Independent in Dec 2015 might be of interest to you, though it is not very reassuring re MBi's tactics.

    http://www.independent.co.uk/life-style/health-and-families/health-news/care-home-rooms-offered-for-sale-to-private-investors-on-buy-to-let-basis-a6768606.html
  • jimjames
    jimjames Posts: 17,619 Forumite
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    If you have the chance to get your money out, do so as soon as you can. Other options look like delaying tactics to avoid paying you - but it is also possible that you've already lost some or all of your money
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Malthusian
    Malthusian Posts: 10,941 Forumite
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    If they offer you any money at all then bite their hands off.

    Who sold you the investment?
  • ashpan
    ashpan Posts: 335 Forumite
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    MBI Investment sold me this, they are currently not offering to refund me any money but im asking them to look into them buying back my investment from me - im wondering whether to take legal advice or just to switch to the hotel room as its offered
    I would love to speak to anyone else who has been involved in this
  • Malthusian
    Malthusian Posts: 10,941 Forumite
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    By all means consult a solicitor but if you pay them any money for advice you are likely to be throwing good money after bad.

    Surely "sell my room in the hotel once ive purchased it" would mean realising your investment in the next 4 weeks - however much that is? Or are they only offering to find a buyer (who may never materialise)?

    The offer to transfer to a hotel room sounds an awful lot like this one. I can't see that either staying in the care home scheme or transferring to the hotel room schemes will make any difference to your chances of seeing any return.
  • ashpan
    ashpan Posts: 335 Forumite
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    Initially they were offering to find a buyer now this is in question, if i stay with my original investment then surely they have to stick to their side of the deal ie provide me with a room in a care home and the returns associated with the leasing of this?

    I really dont know where to turn to with this issue, theres over £50k invested and no reassurance that i will get any of it back!

    Any legal bods or IFA's suggestions would be really welcomed
  • Malthusian
    Malthusian Posts: 10,941 Forumite
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    Initially they were offering to find a buyer now this is in question, if i stay with my original investment then surely they have to stick to their side of the deal ie provide me with a room in a care home and the returns associated with the leasing of this?
    What returns? I understood from your post that they've flat out told you that they can't make money out of running the place as a care home.

    If that is the case then you have nothing to lose by transferring to the hotel room investment but it seems doubtful any returns will be seen there either. As I said in another thread, the obvious problem with buying a hotel room is that it is unlikely that every room in the hotel is owned by third parties, and the hotel will therefore fill up their own rooms before they put anyone in yours.
    I really dont know where to turn to with this issue, theres over £50k invested and no reassurance that i will get any of it back!
    If you were not advised by an FCA-registered adviser, then my first suggestion is to write it off as a complete loss. My other suggestion is to make their life as difficult as possible - ring them constantly asking about the buyback option, write to your MP, write to the Daily Mail, whatever you can think of - and maybe they'll spend some money to "buy you out" in order to extend the life of the scheme.

    Why do you keep writing "Northern powerhouse" in the post title?
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
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    Malthusian wrote: »
    Why do you keep writing "Northern powerhouse" in the post title?

    i fear that the similarity is that returns from this investment are as fictional as the "northern powerhouse".
  • greenglide
    greenglide Posts: 3,301 Forumite
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    Because Northern Powerhouse Developement ( see here http://www.northernpd.com/team-member/gavin-woodhouse/ ) appears to have links with MBI?
  • ashpan
    ashpan Posts: 335 Forumite
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    I originally invested with MBI who split into three companies, without advising us, one of which is called NPD northern powerhouse etc
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