MBI and Northern Powerhouse Developments

AnotherJoe

Aretnap wrote: »

Also the selling price of the hotels should reflect their revenue potential, so if £20M seems disappointingly low it is likely that a good part of the reason is that the location and/or design of the buildings limits their profitability

I think a bigger part by far is that the original investors overpaid considerably. Same as for storage pods, student rooms, parking spaces etc. Another day, same scam.

Jan_Case

We were wondering if anyone else who invested in NPD and were recommended to use Angela Viney Conveyancing to deal with the legal aspect of our purchase? We have noted that people are pursuing claims against Metis Law and would like to know if this is the company that dealt with the legal side of their purchase? In short we are asking if we should be pursuing a claim against the conveyancing company as being complicit in the fraud?

We have read the 2 options tabled at the meeting on 2 October and would like to hear thoughts from other investors.

Our investment was in The Queens Hotel in Llandudno which we know to have a very high percentage occupancy throughout the year ( we live in Llandudno!) However only part of the proposed upgrade has taken place.

AnotherJoe

I think the difference between metis law and any other conveyancer is that (afaik) metis law had a legal relationship with NPD and other conveyancers didn't. So, assuming AVC had no relationship, they were just doing what you asked them to and it wasn't their place to ask if that was a wise business decision.

Now, if the lease has something clearly detrimental to you in it you may be able to claim against them on the grounds they did not point this out. You would clearly need to get independent advice on that.
One thing I'd point out between options one and two is that any option that involves postponing the sale leaves you hostage to future events and a very high risk you may get less in future than more because who do you think will be paying for ongoing maintenance on the structure of the building and even internal fittings, so it is likely to run down over time leading to less occupancy and a less attractive place to buy. no ones going to be paying for any upgrades to "your" Llandudno hotel are they?

Jan_Case

Thank you it makes a bit more sense now. We initially thought Option 1 would be the best one!

npd_investor

Reports were published last week containing details about the individual hotels. Although period since administrators took over is too short to draw any long term conclusions the hotels were run at small to moderate profits (Queens: 2K, Belmont: 35K, etc.). Also interesting to read was that not all rooms were sold to investors: Queens only counted 30 investors whereas the hotel contains 83 rooms. Similar figures for Belmont. Hotels are currently being marketed: Queens asking price: £2.25M (not bad considering that Gavin Shithouse paid the princely sum of £3M back in 2016).

AnotherJoe

npd_investor wrote: »

Reports were published last week containing details about the individual hotels. Although period since administrators took over is too short to draw any long term conclusions the hotels were run at small to moderate profits (Queens: 2K, Belmont: 35K, etc.).

Is that per room/leased room/hotel?

npd_investor

AnotherJoe wrote: »

Is that per room/leased room/hotel?

Figures quoted were for the entire hotel. Again periods are too short to mean anything but hotels could be delivering a profit if run by competent management. There are a few other items to consider though: There are other creditors who need to be paid (HMRC, etc.). Furthermore there is an outstanding charge of £1.8M against 5 hotels by Mysing.

Also it became clear that monies were not held in SPVs associated with individual hotels but were instead transferred to NPD (parent company). It was suggested that this means it is a collective investment scheme. Hence all the NPD investors (1100) will have an equal interest in all the hotels in the group. It was also argued by Mr. Duff that because of the fact that it is a collective investment scheme it should have been regulated by the FCA.

AnotherJoe

npd_investor wrote: »

Figures quoted were for the entire hotel. Again periods are too short to mean anything but hotels could be delivering a profit if run by competent management. There are a few other items to consider though: There are other creditors who need to be paid (HMRC, etc.). Furthermore there is an outstanding charge of £1.8M against 5 hotels by Mysing.

Also it became clear that monies were not held in SPVs associated with individual hotels but were instead transferred to NPD (parent company). It was suggested that this means it is a collective investment scheme. Hence all the NPD investors (1100) will have an equal interest in all the hotels in the group. It was also argued by Mr. Duff that because of the fact that it is a collective investment scheme it should have been regulated by the FCA.

As I said before, IANAL but you bought a lease for a hotel room so i dont see why what was done with the money you paid for that lease makes any difference.
Their promise was to pay you back money related to your specific room based on how many stays there were in that room (AIUI) , not a pooled investment based across all others rooms in multiple hotels as well.
And even if it was a collective scheme, then that simply means that NPD were running an illegal unauthorized scheme. They would have to register it and get agreement first, it doesn't retrospectively become a protected scheme (unless you get lucky)
Frankly (and its not personal) i hope you dont because otherwise it means its open season for even more scams with everyone else picking up the tab for every cowboy scheme out there.

Jan_Case

Where were the reports published about the individual hotels? Also where can I find the hotels up for sale? I have looked on Sanderson Wetherall site and couldn’t find them.

The information received today from Duff and Phelps was so confusing!!!!

npd_investor

Jan_Case wrote: »

Where were the reports published about the individual hotels? Also where can I find the hotels up for sale? I have looked on Sanderson Wetherall site and couldn’t find them.

The information received today from Duff and Phelps was so confusing!!!!

https://www.sw.co.uk/properties/?property_search=Llandudno%2C%20UK&property_search_lat=53.324061&property_search_lng=-3.8276089999999385&property_search_radius=20&property_type=&sale_type=&property_size=&property_price=&paged_number=