Phuket developer denies December 17 deadline for eviction of buyers

[webfact]

Phuket developer denies December 17 deadline for eviction of buyers


Andy Street – not necessarily a deadline for eviction.

PHUKET: Following a story published in Australia’s Sydney Morning Herald (SMH) on Wednesday (November 26) about the possibility of buyers being evicted from their homes in one of Phuket’s ritzier developments, the developer has responded, denying that December 17 has been set as the date when they are to be thrown out.

A Phuket News TV report, from the buyers’ viewpoint can be seen here, and the SMH report is here.

In his response, published on the website of Bangkok-based Property Report, Andy Street of Tawan Properties gives his side of the long-standing mess over the Chom Tawan development near Layan, the result of his development company, Napawan, finding itself “overextended” when the 2008 Global Financial Crisis hit.

Mr Street writes, “Like so many development companies in Phuket, indeed globally, Napawan Asia was over extended commercially at the commencement of the Global Financial Crisis.

“A significant difference for Napawan was that we had built and delivered the properties, which were being occupied by the buyers or rented out by them for investment.

“Whereas buyers in other developments have lost everything without a property being built, my partners and I at the time did not take the easier options available.

“I still intend to deliver all that the buyers require. Appropriate research will identify developments where people have lost their money and this is not the case with Chom Tawan.

“The outstanding issues are the mortgage repayment to the bank and the remaining payment to the builder, where a draft agreement has been issued to resolve this outstanding matter. Within weeks of this date there will be firm plans to bring this debt restructuring to a conclusion.”

Property Report notes that Mr Street does not deny that the 48 owners in the project have been asked to contribute cash to a deal that will see the bank repaid and the title deeds released. Nor does he deny that – if an agreement cannot be reach – the creditors may seize the property.

However, he says this is unlikely to be the preferred outcome for the bank, which is negotiating with Tawan on the restructuring.

The date of December 17 relates solely, he says, to a deadline agreed with the bank to agree payment terms and does not mean that the bank will automatically take further action if no agreement is reached by that date.

Also, he points out, the other creditor chasing payment, a local construction company, filed its claim first, so that must be resolved before any claim from the bank.

“Napawan Asia are working with the buyers, with the bank’s consent, to achieve a debt restructuring. The buyers of Chom Tawan and Napawan Asia are both represented by international law firms.

“Both law firms are involved in negotiations in what is referred to as ‘the three way agreement’ – the other party involved is the bank. Both law firms and some of the buyers are in contact with the bank refining the final terms and conditions of the three way agreement, including meetings and discussions over the previous two weeks

“There is a committee of buyers who are the focal point for the remainder.”

Property Report says that the essentials of the deal are that the construction company will receive a title to land on Bang Tao Bay owned by a sister company of Napawan, in place of cash. That would then allow the bank to enter into a deal with the owners to clear the remaining debt and receive their titles.

Concurrently, Tawan will enter into a deal with the owners to repay the debt from its other business activities.

Source: http://www.thephuketnews.com/phuket-developer-denies-december-17-deadline-for-eviction-of-buyers-49886.php


-- Phuket News 2014-11-28

[coxo]

The bloke can afford a million dollar property in the UK??? Why didn't the buyers receive there chanote titles upon final payment? There is a lesson for all foreigners purchasing property here, do not make the final payment until you receive your named title as is normal practice, I have made final payments inside the land department office a number of times once all the titles are completed and IN MY HAND! I think the profits of that project and all the purchasers money went up the nose....

[stuarty]

Why doesn't he use the money from his "other business activities" to pay the loan, instead of milking more from the owners?

[moe666]

Why doesn't he use the money from his "other business activities" to pay the loan, instead of milking more from the owners?

Because he is smarter than he looks, having said than I wouldn't buy a used car from him.

[ChrisY1]

It's pretty clear what's happening here now.....Mr Street has scarpered and living well in the UK......the banks will foreclose soon and those in the know, will be the new owners of prime realty purchased at bargain prices

[AJBangkok]

I'd say because the construction company debt is unsecured and rolls up to napawan while the chom Tawan debt is secured against the land the project sits on. They can abandon the people that purchased the units to the banks as they've already sold the units and taken the money, but the construction company creditor can come after napwan which is their personal assets.

The company took money from the banks and took money from the purchasers but did not pay the company that built chom Tawan nor did they repay the banks. So where did the money go? Probably into million dollar houses in the UK.

[aussieinphuket]

why would he also sell him million dollar home in surin on the hill with beautiful views and disappear to the UK... hiding no doubt from debit collectors. why were the properties

at Chom Tawan Mortgaged anyway they were sold with free titles. i am sure this is something that was done after all the sales to finance other developments... i feel sorry for the

owners at Chom Tawan i hope the matter gets resolved asap. he also has a stalled development at Ao Por where he owes millions to others .... funny how he talks about Chom

Tawan but doesn't mentioned he has taken people for a ride also at Ao Por....

[lucjoker]

Buy only finished houses and condo's ,

so you can really see what you buy,

check out the paperwork......

It is cheaper to buy before it is build,

but you could loose your money and this is

what "cheap Charly" often forget.

[lucjoker]

look at the man's face.....there is a big X over his face ,can you see this ?

His body language says :" i know i'm no good "

[BestBitterPhuket]

Why would anyone buy anything that is not finished in Thailand, unless you buy from some of the big names in the local industry. This guy should be sued in the UK, if he don't deliver. He can be personally liable as a manager or director for possible negligence, and may not be able to use the company structure as a shield.

[Daniel Boon]

look at the man's face.....there is a big X over his face ,can you see this ?

His body language says :" i know i'm no good "

I agree, the face of a shonky bloke ... hope the military steps in (and I don't mean to snap up cheap property)

[KarenBravo]

look at the man's face.....there is a big X over his face ,can you see this ?

His body language says :" i know i'm no good "

I agree, the face of a shonky bloke ... hope the military steps in (and I don't mean to snap up cheap property)

Okay..........a devotee of phrenology. Just one look at this man's facial bone-structure and you can tell if he's a criminal.

I'm impressed.

[lifeincnx]

Best to rename his development company Ponzi Enterprises LLP.

[junk1e]

Mr. Street is just the latest in a long line of Western property developers and time share operators who have come to Phuket, made a personal fortune and then fled leaving their victims up the creek without a paddle. What amazes me is that so many foreigners are willing to part with hard earned cash in deals they would not even consider in their home countries. It is almost as if they leave their brains behind. I also feel sorry for the few genuine developers out there as trust in the Phuket property market quite rightly is non existent.

[whiteman]

Thailand the Hob of Ponzi rip offs and knock offs

[phil2407]

Guess in LOS - you pay for a place to live and then told "oh sorry - we f***ed up and went "bust" so you must pay more money" What a joke

[Suffinator]

And the moral of the story .... NEVER buy property in Thailand ... RENT IT and walk away whenever you like. Why anyone would buy something you can't legally own is beyond me. Still there are plenty of fools still to be had.

[harrycallahan]

48 houses. How much does it take to incentize those tattooed layabouts to act as debt collectors?

[CapFarmer]

The bloke can afford a million dollar property in the UK??? Why didn't the buyers receive there chanote titles upon final payment? There is a lesson for all foreigners purchasing property here, do not make the final payment until you receive your named title as is normal practice, I have made final payments inside the land department office a number of times once all the titles are completed and IN MY HAND! I think the profits of that project and all the purchasers money went up the nose....

I learned the lesson of making final payment prior to moving into a property and prior to receipt of the chanote title. Looking back, the Thai construction manager warned me not to do it, and I did it anyways. I did finally get the title worked out, but it took over a year and was very stressful.

I would add that the chanote title should be inspected prior to paying any initial payments as well.

[micmichd]

Expropriate those Farang tycoons who call themselves "developers", and throw them out of the country Iif they violate laws.

They are worse than a Tsunami.

[BlackJack]

If Escrow was in place non of this would have happened!

4 in the ring - the developers, the banks, the lawyers, the buyers

now who do you think the loser will be?

now that took all of nano second to answer didnt it?

[gamini]

look at the man's face.....there is a big X over his face ,can you see this ?

His body language says :" i know i'm no good "

I wonder if he is a licenced real estate developer. In Australia you have to work a few years with a reputable real estate company then you have to take an an exam to be certified before you can start buying and selling. It seems that any "tom, Dick and harry" can set up a real estate business here in Thailand with no experience and consequently lose clients money. Many are dishonest especially the Farang ones . One Brit did me out of 6 million Baht

[kannot]

And the moral of the story .... NEVER buy property in Thailand ... RENT IT and walk away whenever you like. Why anyone would buy something you can't legally own is beyond me. Still there are plenty of fools still to be had.

many in Spain legally done but now illegal also.

[micmichd]

What do you really want to own it for?

[micmichd]

look at the man's face.....there is a big X over his face ,can you see this ?

His body language says :" i know i'm no good "

I agree, the face of a shonky bloke ... hope the military steps in (and I don't mean to snap up cheap property)

Okay..........a devotee of phrenology. Just one look at this man's facial bone-structure and you can tell if he's a criminal.

I'm impressed.

When I look at his lips I miss the smile.

He looks he's about to kill someone. For many Farang businessmen, having a 'killer instinct' is a must, and a sign of success.

[Strangebrew]

What a bunch of idiots I only do any property deals here in LOS with my Thai lawyer and Bank present to check all paperwork is correct and in order also Have all parties sign typed statement to the fact that paperwork and payment is recieved. With witness signing too. Got burnt once is US so never again took 6 years and the agent getting both legs busted up bad before I got my money back. No one screws with my money.

Edited November 29, 2014 by Strangebrew

[Nuddy]

Banks are mongrel dogs

A Bank will take the easiest way to recover its dosh.

The new "owners" of the units are the easiest and most likely to pay.

Why bother chasing some Thai fraudulent person when the Bank has these people on hand.

What was that about a bird in hand .....?

Regards

[peterb17]

How many times has everybody said on this truly wonderful site advised- never get involved in buying houses- a foreign owned condo at the moment is fine- never ever ever buy off plan.

The guy's sunglasses probably cost more than your house- never trust anybody.

Rent- yes it costs a lot for a nice property- but there you go.

[Rickster]

Mr. Street is just the latest in a long line of Western property developers and time share operators who have come to Phuket, made a personal fortune and then fled leaving their victims up the creek without a paddle. What amazes me is that so many foreigners are willing to part with hard earned cash in deals they would not even consider in their home countries. It is almost as if they leave their brains behind. I also feel sorry for the few genuine developers out there as trust in the Phuket property market quite rightly is non existent.

Same mind set when purchasing women also....

[NamKangMan]

look at the man's face.....there is a big X over his face ,can you see this ?

His body language says :" i know i'm no good "

I agree, the face of a shonky bloke ... hope the military steps in (and I don't mean to snap up cheap property)

Okay..........a devotee of phrenology. Just one look at this man's facial bone-structure and you can tell if he's a criminal.

I'm impressed.

No need to look at an individual's facial bone structure.

He's a foreigner, working in the property industry, on Phuket - he's a criminal.