Investors in dark after collapse of overseas estate agent

IRISH investors in foreign properties have been left in the dark following the collapse of the specialist overseas estate agents, Larionovo.

The Co Clare-based company went into liquidation on Tuesday, posting a notice on its website that queries should be addressed to a provisional liquidator in Dublin.

However, clients of the company have complained of being unable to talk to the liquidator because of the sheer number of people trying to contact him.

A property industry source said investors were not in danger of losing their properties or money as long as the developers of the various schemes remained solvent, as Larionovo had acted only as an agent and was not involved in construction.

However, investors will have to contact the developers directly to get updates on their investments and, in most cases, that will mean dealing with foreign firms as far away as India.

Larionovo acted as agents for developments in Portugal, Italy, France, Spain, Bulgaria, Hungary, Poland, Morocco and India.

It is understood that the liquidator, from the Grant Thornton financial services company, will be in contact with customers in the coming days to give them details of the developers and of legal representatives they should deal with. Details will be posted on the company’s website as they are confirmed.

One investor, however, said she that had contacted the developers of the apartment on which she had placed a deposit in India but was still awaiting answers to her questions.

Karen Marshall placed a €12,000 deposit last year on a €32,000 apartment in the Hill View development being built by the giant Sigrun construction company outside Mumbai.

But Ms Marshall — along with an estimated 200 other Irish investors — were earlier this year promised their deposits back after new laws introduced in India threw doubts over whether they would be allowed to take rental income from the properties back to Ireland.

“We got letters saying, because of the legal uncertainty, Sigrun would cancel our bookings and refund our deposits by November 30 but I don’t know if that’s going to happen now. I badly need clarification,” she said.

Ms Marshall said she was keen to contact other investors in the three Indian developments promoted by Larionovo.

“We’re only ordinary people, not big-time investors, and if it’s going to be the case that we need to hire solicitors or other experts to handle our dealings with Sigrun for us, the cost would be a lot easier to manage if it was spread across a large group of people,” she said.

Ms Marshall has invited others affected by the liquidation to contact her at [e-mail].

Seven local employees lost their jobs as a result of the company’s collapse which is believed to have resulted from the near zero rate of new sales this year.

The liquidator did not return messages last night.