Freedom Bay in St Lucia describes itself as a stunning eco luxury 5-star resort, with the resort funded by investors being made of one and two bed villas.
But years later after the first money poured in from investors – many from Self-Invested Personal Pensions (SIPPs), the resort has still not been completed, leaving both investor’s initial capital and future returns at serious risk, with no compensation scheme signed up to protect investors from a worst-case scenario such as a liquidation.
PROBLEMS AT FREEDOM BAY
While initial completation dates for the properties as presented to investors in 2012, were around December 2014, 2 years later the investments were still left incomplete.
At least one SIPP provider is now valuing Freedom Bay investments at “nil”, meaning those “worst case scenarios” that tend to be protected against in regulated funds but not in this case, may have been fulfilled.
JAN 2017 UPDATE FROM MALGRETOUTE HOTEL DEVELOPMENT:
Delays were at least partially blamed on the “frustrating actions of the previous Governments in St Lucia”
“Severe delays suffered”
“We are now working to ascertain how best to complete the build out of the entire resort”
“It is clear that in order for the resort to be fully built out further funding is required”
“We would ask that everyone would bear with us…”