MBI and Northern Powerhouse Developments

ashpan
ashpan Posts: 335
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edited 13 September 2017 at 5:54PM in Savings & investments
i invested in a care home development company a couple of years ago, then known as MBI Property Investments, but now known as Northern Powerhouse Developments. 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 wont 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.
Has anyone else invested in either MBI or Northern Powerhouse Developments ?
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Comments

  • Zanderman
    Zanderman Posts: 4,627
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    As I posted in your other thread on this (why two threads in the same place?):

    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
  • I think we are in the same boat as you. Is there any way I can talk to you? I am new to using a forum.
    Did you become involved with this through Graham Rowan, Elite Investor Club ?
  • ashpan
    ashpan Posts: 335
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    You can send me a personal message on here, it wasn’t called that initially and I invested direct through MBI, would be good to compare notes
  • ashpan
    ashpan Posts: 335
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    edited 10 July 2019 at 7:43AM
    thanks for the link

    im still looking for other folk who may have invested in either of these companies - its starting to look . more and more like a scam and if this is the case ive lost over £50k

    any suggestions as to how to find others so we can compare notes are more than welcome

    there are two people involved one is{Edited by Forum Team} and the other is {Edited by Forum Team} from Elite Investor Club - theyre currently looking for investors for yet another project and i really think people should be warned but no idea how to go about this
  • I am talking to NPD about buying a room in Eden Country Spa which is a hotel they are buying with completion supposedly due December. The deal introduced to me by Property frontiers.com promises 10 percent of purchase price per annum as "rental" from the hotel operator and after 10 years your purchase price back plus 25 percent . This sounds very generous when compared to
    them taking out a commercial mortgage at around say 3 to 4 percent even if refurb interest rates are higher . . So it suggests that they can't find a mortgage lender and instead make an attractive offer to the public at large. I am interested in swapping experiences with others who have purchased or are looking at purchasing rooms in this hotel or other hotels in the NPD group such as Atlantic Bay Hotel Woolacombe, another in llandudno and about 9 in all.
    I'm having difficulty getting information about .the current hotel operation, revenues, occupancy etc. and so have concerns about the risk involved. Lots more to cover if anyone can make contact..
  • Non FCA-regulated investment offering extremely high levels of 'interest' with vague and confusing company structure and little information available. What could possibly go wrong?
  • Malthusian
    Malthusian Posts: 10,862
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    nagromed wrote: »
    I am talking to NPD about buying a room in Eden Country Spa which is a hotel they are buying with completion supposedly due December.

    If you've read this thread and the OP's other thread and this older thread concerning another investment promoted by the same people who are promoting Eden Country Spa (which funnily enough also promised a high level of income followed by a 125% buyback), and you are still "talking to them" present tense, then I have nothing more to say.
  • Zanderman
    Zanderman Posts: 4,627
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    nagromed wrote: »
    I am talking to NPD about buying a room in Eden Country Spa which is a hotel they are buying with completion supposedly due December..... ....I'm having difficulty getting information about .the current hotel operation, revenues, occupancy etc. and so have concerns about the risk involved.

    Have you read the threads about this?
    You're still thinking about investing?
    Yes, you should have concerns about the risk involved....
  • nagromed
    nagromed Posts: 4 Newbie
    edited 10 July 2019 at 7:44AM
    I have already withdrawn from the purchase although I did put down £500 deposit to reserve the room pending legal purchase but "refundable for any reason" as promised in their marketing literature.
    But if they decline to make a refund, perhaps other information will help to apply the necessary pressure on them.
    {Edited by Forum Team} seems to be the main link between MBI and NPD.
    I'm a first time forum user, so apologies if inadvertently I have broken some
    rule or other.
  • Shashy
    Shashy Posts: 139 Forumite
    edited 10 July 2019 at 7:44AM
    nagromed wrote: »
    I have already withdrawn from the purchase although I did put down £500 deposit to reserve the room pending legal purchase but "refundable for any reason" as promised in their marketing literature.
    But if they decline to make a refund, perhaps other information will help to apply the necessary pressure on them.
    {Edited by Forum Team} seems to be the main link between MBI and NPD.
    I'm a first time forum user, so apologies if inadvertently I have broken some
    rule or other.

    Don't plan on getting that 500 quid back
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