Desert Pearl Development fiasco in Hurghada, Egypt
Rivermead support investors of the Desert Pearl development fiasco as other agents simply walk away.
Where it all started
‘The Desert Pearl Beach Apartments are located in the El Kawthar area of Hurghada, close to the heart of the town and just 200 metres from its spacious tree-lined boulevards and the beach’.
Predictably, customers lined up to invest in the paradise described above when the Egyptian property market started to take off around three years ago. However, no one could have overseen the fiasco that has left around 300 investors in the lurch over the Desert Pearl developments.
In 2006, Worldwide Destinations, based in Cambridge, announced a new development in Hurghada, Egypt. Fast becoming one of the newest holiday hotspots, as part of the ‘Red Sea Riviera’, many jumped at the opportunity to own a piece of paradise that they could use as holiday homes or retirement spots. Three years later, and the picture of an idyllic life has been shattered for many.
Who is involved and what is the current situation?
The squalid story involves Worldwide Destinations, who were responsible for selling the properties, and El Riad Real Estate, who were the developers. Earlier this year, it emerged that Worldwide Destinations failed to pay El Riad a sum of money in the region of £2.4 million. As a result, locks were changed on properties, construction has stalled and many prospective home owners are left in fear of what has happened to their investments. To make matters worse, the land that the Desert Pearl Developments was built on has been mortgaged to the Bank of Abu Dhabi for 25 million Egyptian Pounds.
Now, on their website, El Riad are claiming all the rights to the Desert Pearl developments and have terminated any agreements with Worldwide Destinations. They state that: ‘NO company NO individual has any rights to the DESERT PEARL 1 development except that of EL RIAD the sole developer of Desert Pearl 1’.
Meanwhile, Worldwide Destinations seem to have relinquished all of their responsibilities to their clients and, as one angry investor said, ‘you could not see our agents for dust’. And so, 300 investors were stuck with nowhere to go and no one to turn to, until Rivermead Global Property stepped in.
How Rivermead is supporting Investors
Rivermead had originally sold some of the properties and were helping their own clients to wade through the chaos that was fast unravelling. However, as time went on and other agents simply walked out on their own clients, Rivermead’s reputation for sticking by their clients was spread by word of mouth. They went to international law firm Denton Wilde Sapte to resolve the situation. However, it emerged that the costs for representing each individual would spiral out of control.
Rivermead’s Neil Hollingsworth has now set up the Hurghada Residents Association as the main client in the case and the affected investors have joined as plaintiffs. Currently, they are helping 150 investors and have set up a forum at www.hurghadaresidentsassociation.com as a base for individuals to contact each other and to be kept up to date on news. As you scroll through some of the posts it is clear the forum doesn’t simply act as a space to convey information. Many people seek reassurance and comfort, even if only to be set their mind at rest because others are in the same dire situations.
Have you been affected by this development?
If you have been affected by the Desert Pearl development and in need of support, if so please contact us Alternatively feel free to give your opinion and leave a comment …