Investors lose thousands as resort scheme goes bust

UP to 200 Irish people have lost between €15,000 and €50,000 each because a Bulgarian apartment complex property deal they bought into has gone bust.

Dublin-based agency, Platinum Developments, which sold the apartments, wants to take over the contract and finish the complex in partnership with another building firm.

The overseas property agency has vowed to fight to save a €6.5 million investment made by hundreds of people in the development.

The builders of the Pomorie resort walked off site after the Dutch developer ran out of money and had its bank accounts frozen.

Platinum this week sent letters to all the Irish investors explaining the problems and vowing to put together a rescue package, though the investors face an anxious two-week wait.

Hundreds of Irish people signed up to buy apartments in the luxury resort after sales meetings organised by Platinum. The agency, which faces serious losses, even organised charter flights to the resort.

The buyers, attracted by potential profits of 10% after mortgage and bills, have already paid 30% of the price. The apartments were on the market for between €40,000 and €150,000.

Aaron Tracey, sales director for Platinum, said the builders stopped work a couple of weeks ago after it emerged the developer, Capital Ground and Building Investment, had "cashflow problems".

Platinum has moved to protect the investment of its clients by issuing a charge against the land. "We are looking to take it over and are in discussions with a very large international builder," said Mr Tracey. "We will know in the next two weeks."

Platinum has spoken to a representative of the Dutch developer and believes the company simply ran out of money. Much of the building work on the project has been completed.

Mr Tracey said his company carried out a background check on the developer before agreeing to act as its Irish agents. It had a good reputation and had been involved in developments in the Netherlands and Germany, he said.

The Pomorie resort was planned as the first five-star beach and golf resort on the Black Sea coast of Bulgaria. Investors were enticed by planned features including an 18-hole golf course, Olympic-size swimming pool, restaurants, bars, boutiques, casino and theatre.