Property agent was warned away from Bulgarian resort’s developer

A PROPERTY agent has revealed he was warned to stay away from a Dutch developer with a “disastrous track record” who has sunk €10 million of Irish money into a half-built Bulgarian resort.

More than 300 Irish investors have lost between €15,000 and €50,000 after paying 30% of the total cost of the apartments in the Black Sea resort, touted as the first five-star golf and beach resort in the country.

Angry and anxious investors, the bulk of whom are Irish, are waiting to hear whether Dublin-based agency Platinum Developments, charged with selling the Pomorie apartments, will manage to assemble a rescue package so that work can resume on the resort.

Bernard Harris, who, along with his brother Robert, handed over a total of €60,000, said he has no confidence in the future of the project and wants his money back.

Mr Harris only discovered by chance there were problems last Tuesday, despite subsequently being told that the builders had walked off the site months ago.

“I am absolutely going mad. I am not confident, I am not hopeful. I am going to hold these people (Platinum) personally responsible,” said Mr Harris.

Neil O’Reilly, the managing director of Platinum, admitted yesterday his company’s checks did not uncover disturbing details about the history of the developers, Capital Ground and Building Investment and its Dutch principle, Ype Baftra.

Gavin Duffy, a property agent who contemplated becoming involved in the project, said his checks revealed low amounts of cash at hand, substantial debts and aborted projects in other countries. Dutch lawyers investigating Capital came back with a warning to stay away from the company.

Mr O’Reilly, whose colleague told the Irish Examiner that due diligence checks were carried out on Capital, admitted Mr Duffy’s checks appeared to have been much more diligent. Preliminary checks were carried out, he said.

Mr Baftra yesterday told Joe Duffy’s RTÉ Liveline show that all the money handed over by investors had been ploughed in to building works. The Dutch developer admitted his bank accounts have been frozen. He owns the half-built building and will be looking for money from any new consortium that takes over the development.

It is now known that more than 300 Irish people invested over €9m. Approximately 200 units were sold by Platinum and about 130 by B&D Developments.

B&D’s Damian Fitzsimons said he was trying to find a solution and believes the project can be completed. But, speaking from the site, Mr Fitzsimons said he calculates about €5m, not €9m, has been spent so far on the project.