New Nordic: Pattaya developer begins voluntary rehabilitation procedure with Bankruptcy Court

[mike1967]

10 minutes ago, scubascuba3 said:

Why MUST you be able to leave in a few hours?

Rent your house, rent your motorbike, get a coin operated girl and you'll be happier in the long run. Sure you've heard plenty of stories. There's a reason why this opinion keeps on coming up. Like I say, it's not the same for everyone. Same as everything in life.

[bkk6060]

Good luck to those who have already made a financial commitment.

I never understood the attraction in Pratumnak for the Nordic projects.  Castles and orange buildings?

I guess the Nordic folks like it seems like something bizarre to me kind of freakish and eerie from a monster movie.

[BusyB]

14 hours ago, Destiny1990 said:

Bummer, so their guaranteed rental return of 10% for ten years wasn’t guaranteed ????????. Now these unit owners should just be happy if they may keep their overpriced mostly leasehold units. 

Theres no doubt, it did look good. 

[stewartthailand]

I invested based on the 10% return and every month on the dot my money appeared in my bank account. That was for 4 years with no problems and I received almost 2 million baht (an excellent return. This January would have been year 5 with another 1/2 million baht interest and the buy back of my capital investment. This company has gone into restructuring not because of fraud or bad management but because of COVID and therefore the lack of tourists (mainly Chinese) and therefore the lack of cash flow. Whilst I am likely to suffer a financial loss I can at least acknowledge the real reasons and not the spurious ramblings of many of the contributors to this topic.

[scubascuba3]

6 minutes ago, stewartthailand said:

I invested based on the 10% return and every month on the dot my money appeared in my bank account. That was for 4 years with no problems and I received almost 2 million baht (an excellent return. This January would have been year 5 with another 1/2 million baht interest and the buy back of my capital investment. This company has gone into restructuring not because of fraud or bad management but because of COVID and therefore the lack of tourists (mainly Chinese) and therefore the lack of cash flow. Whilst I am likely to suffer a financial loss I can at least acknowledge the real reasons and not the spurious ramblings of many of the contributors to this topic.

Did you not get the chanote for the condo? I'm just wondering why you made a loss except loss of future rent.

 

Also you say excellent return, what was the cost and size? Usually the price was just bumped up and give it back in rent

Edited March 16, 2021 by scubascuba3

[IrishInThailand]

Harsh, wonder will their other interests in places like the Philippines be affected ?  Pre covid was nordic paying the 10 per cent no problem?

[Behind Thailand]

Kurt Svendheim the boss of New Nordic decamped to Dubai a long time ago. Warnings were made many times about investing in these 'too good to be true' projects but unfortunately not in the local media which were happy to promote and take the advertising funds. This one is no exception. A quick search of New Nordic, Svendheim, bondreview, David Simpson, Emerging Trends etc., and the Landesman Bank in Norway, (which lost 70 million kroner) on Svendheim property projects in Bulgaria and elsewhere will tell the whole story. People who bought into properties will probably get zilch. Those who happily got returns for a few years were deceived and did not look carefully at how the agreements were structured and what financial authorities were actually controlling these deals. 

Edited March 16, 2021 by Behind Thailand

[geisha]

Hi, those people who have bought outright their condos and live there, risk loosing everything ? Even in fully finished buildings ?

[scubascuba3]

1 hour ago, geisha said:

Hi, those people who have bought outright their condos and live there, risk loosing everything ? Even in fully finished buildings ?

If no chanote then yes

[jacko45k]

4 hours ago, geisha said:

Hi, those people who have bought outright their condos and live there, risk loosing everything ? Even in fully finished buildings ?

Did those who accepted the guaranteed 10% income have full ownership of their properties? (I don't mean was it financed, more that they had paid the full purchase price, received the chanote, all tied up in a pretty bow, and then entered into another arrangement for them to rent out the property, but retaining full ownership). Obviously asking to know if they actually still have that condo?

[Aaberlinstresse]

On 3/16/2021 at 6:45 AM, Eindhoven said:

 

For me that means up to five years or more waiting and possibly nothing back. 

Though I have no experience with these things.  Someone else with actual knowledge may reply.

Meanwhile you can ask yourself using their Contact link: https://nng-restructuring.com/

Thank you very much

[najomtiensun]

On 3/17/2021 at 3:28 AM, scubascuba3 said:

If no chanote then yes

What then did some of these long established 'owners' actually have ? Sounds like nothing. Having spent a few minutes googling the results are astonishing and very surprising anyone would have invested given that level of uncertainty. 

Edited March 18, 2021 by najomtiensun

[treetops]

On 3/16/2021 at 7:19 AM, MarleyMarl said:

ame boat here, was paying about 40k a month 6 years ago for condo (20k for small 1 bed condo and small office space 20k), I would imagine the rental would of increased as I would of moved into a nicer place, bigger office so lets say average 50k THB / month saved over 8 years pays for the property (4.7mb) I bought with my fiancé. 2 more years and it's break even.

Not quite.  If you had invested that 4.7mb in the stock markets and made a conservative 6%, compounded over 8 years you'd now have about 7.5mb in your pocket or enough to keep paying rent for another > 12 years.  You can't ignore the opportunity cost missed of using your capital as you have done (I'm not debating the pros and cons, and my calculations don't take everything into account, but giving an indication of what is missing from your calculations).

[Pattaya Spotter]

I wonder how much money went for the Ferraris and Bentleys...it's important for developers to project an image of success. 

[Pattaya Spotter]

On 3/15/2021 at 10:23 PM, Ron jeremy said:

That’s why you rent! Period!

Or buy from reputable exchange listed Thai developers, of which there are many. Any development with foreign ownership or development I run away from as fast as my legs will carry me.

[Pattaya Spotter]

On 3/15/2021 at 11:45 PM, Golden Triangle said:

As has been seen time & time again in this fair city, all is not what it seems unfortunately. 

Plenty of reputable developers in town...unfortunately the newbs and dummies buy from the others...what do you think all the pretties in short skirts at the malls are for.

[Pattaya Spotter]

On 3/16/2021 at 4:24 AM, scubascuba3 said:

People have been talking about these guaranteed rent schemes for years, no one should fall for that, plus buying off plan, only fools do that

The only thing "guaranteed is that the rental return has been factored into the purchase price.

[jacko45k]

12 hours ago, Pattaya Spotter said:

The only thing "guaranteed is that the rental return has been factored into the purchase price.

Was it....? I never heard that the prices of that groups condos were substantially higher to cover that deal. They are doubly better off then, because it looks like they won't be paying up. 

[smylee52]

Just another example of why you do not invest what you can not afford to walk away from in Thailand . .  

I bought a condo because I wanted to fit something out to my standards and not have to deal with the unscrupulous people in the rental market . My mind was made up when I was forced out of one rental because i was told the owner was returning early and he wanted his condo to stay in . Found out later the same condo was rented to an acquaintance for a considerable mark up and that's why I was forced out . 

Upside to owning is I have my preferred appliances , furniture and electronics . Soft goods like towels , toothbrush , clothes always ready and waiting , Annual cost is negligible .

Downside is condo next door is on monthly rental and occassionally get loud neighbors that need to be encouraged to turn the music off after 11 P.M. . Currently have a young family in with a 2 year old that is exercising her lungs . Funny how loud music sets me off but a baby screaming at the top of her lungs for attention makes me laugh.  Difficult enough for young parents in a one bedroom condo with a toddler so no need to increase their stress levels by complaining about a vocal baby . I don't hear a peep after 9:00 PM so be happy if they have an extended stay and protect me from the next DJ wannabe that moves in .

Bottom line is I can leave anytime I want and go rent somewhere else if the situation calls for it because it's 20,000 baht a year , all in . to keep the condo empty and at the end of the day I an afford to walk away if necessary . Don't buy if you can't do the same because stressing about a bad investment can put you in an early grave .  Remember TIT . 

[worgeordie]

I remember a time when you could not make any negative remarks

about New Nordic on TVF....they must no longer be paid advertisers 

regards Worgeordie

[mgthom63]

To add insult to injury, I just read (on a private, largely Russian "New Nordic' group forum) that some investors have been receiving messages from a NN manager.  I'll let this 'helpful' advice from him/her speak for itself:
 

I’ve got a e-mail from Russian manager NN as below:

Dear customers,

Recently there have been appearing social networks posts where different people offer to help buyers and investors of New Nordic Group with returning the funds invested in New Nordic Group. Those people offer the return of the money without a court settlement, outside of court, within a short period of time and in cash.

In this situation we consider it necessary to caution you against participating in deliberately illegal activities, that may incur negative consequences for you. We’d also like to inform you that New Nordic Group and Double Season companies are not related to these posts and these activities in any way.

С уважением,

Сергей Коновалов

 

While I realise these situations can bring the "I'm a lawyer/legal expert who can fix your problem real quick/cheap' scammers out of the woodwork, I find it somewhat ironic that this 'NN manager' appears to be suggesting that individuals who offer up the possibility of 'out-of-court' settlements/short-period/in cash are somehow automatically guilty of 'deliberately illegal activities'.

I'm no legal eagle, but isn't this called settlement-before-trial -  and a totally legitimate practice/offer of help frrom either qualified lawyers or wannabe's? (versus investors quietly going along with the NNG rehabilitation plan/bankruptcy that could take forever to recover some or likely none of the funds invested).

 

Of course, I find this potentially defamatory talk by an NNG employee of 'deliberately illegal activities' all the more ironic/hypocritical when I google Kurt Svendheim -  and read of his alleged shenanigans in Thailand/Norway/Bulgaria/Brazil/etc and the Aston Martin, vintage champagne, etc he enjoyed in Pattaya ????

 

 

 

 

Edited March 20, 2021 by mgthom63
typo

[mgthom63]

43 minutes ago, worgeordie said:

I remember a time when you could not make any negative remarks

about New Nordic on TVF....they must no longer be paid advertisers 

regards Worgeordie

Yep, I made a polite but critical remark about Emerging Trends Advisors a few years ago, following an ad I saw here - my comment disappeared real fast. Same old stuff - 'guaranteed returns', a very safe investment, secured on property, blah, blah, blah - but that was then - I'm guessing things have improved and its ok to be a little more critical now these firms have clearly left investors up s**t-creek?

 

Edited March 20, 2021 by mgthom63
typo

[bert bloggs]

On 3/15/2021 at 10:23 PM, Ron jeremy said:

That’s why you rent! Period!

Condo not a house

[Jogger88]

We still haven't seen the fallout from the lockdowns. When governments stop giving people and companies hand outs we will start to see a real collapse. Pensions will become worthless. Few airlines will be flying. It is going to be very hard to get out to Condos.  If condo buildings are mostly empty they will start to go to ruin.

 

Unless the Chinese come back in large numbers the property market will go into free fall. Since China didn't really lockdown, the Chinese will probably end up owning the market.

[Jack100]

On 3/16/2021 at 9:03 AM, Thomas Hannah said:

Have warned people for 20 years about buying in thailand,not just because of this problem.But so many talk about how much there condo is worth.untill they come to try and sell it.and are lucky to get 50% of what they thought it was worth.Loads of selling hype.The property developers dont loose money.The company does,not them.They then open a new company soon after.This is not just thailand.I have heard many times people saying .he went bankrupt.And then having to explain.

Thomas I bet your a bundle of fun to be out with on a Saturday night ! 

[pattayadude]

On 3/15/2021 at 10:51 PM, Jonathan Fairfield said:

A key player in Pattaya’s real estate market has announced it has initiated a voluntary rehabilitation procedure under Thailand’s Bankruptcy Act

it's not only the developers. The city is about to bankrupt all together

[Leaver]

On 3/17/2021 at 3:28 AM, scubascuba3 said:

If no chanote then yes

 

There's been cases of fake chanotes here in the past.  The property title documents can't even be relied upon here.  ????

[pattayadude]

On 3/22/2021 at 12:27 AM, Jogger88 said:

Unless the Chinese come back in large numbers

I'd rather not live there!

[pattayadude]

On 3/18/2021 at 5:53 PM, Pattaya Spotter said:

I wonder how much money went for the Ferraris and Bentleys...it's important for developers to project an image of success. 

Waterfront developer with friends  popping Don Perignons

[scubascuba3]

3 hours ago, Leaver said:

 

There's been cases of fake chanotes here in the past.  The property title documents can't even be relied upon here.  ????

houses in nakon nowhere maybe, condos in Pattaya? buying a condo and getting the chanote at the land office is safe, but give examples if don't agree