The Dutch property company behind a Bulgarian hotel and apartment resort will this week move to reassure up to 320 Irish investors that their money is safe.
Fears were high over the weekend among investors in the Pomorie Hotel and Golf Resort on the Black Sea, that they faced losses of up to €12 million.
Concerns were based on reports that the assets of NV Capital Ground & Building Investment, the Hague-based developer of the complex, had been frozen following a Dutch government inspection of its accounts two months ago.
Irish investors have paid deposits of between €15,000 and €50,000 in the apartment and golf resort in the south of Bulgaria, either directly to NV Ground or through two agents - Platinum Developments based in Rathmines, Dublin and B&D Bulgarian Properties.
The Bulgarian builders walked off the resort site - which is due to be completed by March next year - a month ago when NV Ground was unable to pay them.
Investors, from Britain, Germany and Holland as well as Ireland, were attracted by immediate profits of between 10 per cent and 30 per cent.
The Pomorie project is planned as the first five star resort on the sunny Black Sea coast, and is designed with such features as an Olympic-sized swimming pool, restaurants, bars, an 18-hole golf-course, shops and various entertainment venues.
Irish agents had even chartered flights to the region to showcase the plans.
Platinum Developments last week moved to protect its investors, in the wake of the debacle, writing to them to tell them of NV's "cashflow problems" and advising them they "may wish to reconsider proceeding with a purchase in circumstances where contracts have not yet been signed and returned to the developer".
However, Mr Ype Bastra, Director of NV Ground, told The Irish Times yesterday, his company would be writing to all investors "at the beginning of the week" telling them Platinum would be taking over the entire development project in Bulgaria.
"Not one penny will people lose. If people are not happy with Platinum to take over they can get their money back. But it will be a fresh start and the project will be finished, maybe a month or so behind schedule."
Though none of the directors of Platinum could be contacted yesterday, Mr Aaron Tracey, company Sales Director, was reported as confirming last week the company was "looking to take it [the project] over and are in discussions with a very large international builder".
Much of the building work has been completed.
Mr Bastra said he had heard the reports that Irish investors feared losing large sums of money but said their concerns were "not reasonable".
"We made a contract that the building would be done and it will be done. It is disappointing for my company, of course. At the end of the project Platinum will pay us some of the profit."
He said he was confident NV Ground's accounts would be 'unfrozen'.
