Mr Tea

Agreed. But the complexities in the JNP case were not too err ... .. complex! It was simple. We give you this 70% of the total funding required for the project, you raise the balance (which admittedly he did - don't know how), you build the houses, and repay the balance from the proceeds. If you fail to repay the loan, we secure the assets (land and buildings) and sell to recover our money! What is complex there?


Immorality: The morality of those who are having a better time!

Mr Tea: I'm not privy to the contract and would also not discuss it in a public forum. I may have oversimplified the issue but really that is how it should be. If he had used the money given (since you have first hand knowledge, you know that it is a huge amount) for what it was intended for, there would never have been this problem.

OPIC have come out clearly to state that JNP defaulted on 3 repayments without any explanation. He refused to provide a breakdown of how he'd spent the money already advanced. An independent review done showed that he had spent less than 15% of the money given by OPIC for the Mombasa Road project on the Mombasa Road project. At the same time he was building a huge complex in Texas.

All in all we are saying the same thing i.e. JNP is a conman. You seem to be well endowed in the Real Estate business so I will not indulge you as I know little about it. What I don't understand is why he did not exercise prudence and honour the contract.

Quick question here! Do you think that were JNP to use all the money given to complete the project, he'd have easily repaid the loan?


Immorality: The morality of those who are having a better time!

'Plus repayments are only made 6 or so months after the completion of the project.'

Is that a norm or an exception? Any views on my question?



Immorality: The morality of those who are having a better time!

Sasha,

At the end of the Receivership,and assuming the whole property is sold - is the new owner obligated in any way to the people who had placed deposits with JP?

www.likechapaa.com

Even if the guy refunds your deposit now,what will be its real value? Assuming you had bought the houses at 3.8M,similar houses in that neighborhood are currently (Muthama Heights) going for 6.5-7M.

I know of a estate in Langata which had stalled but one of the buyers went to the selling agent and got the contacts of all the pople who had bought the houses. He called them for a meeting and the attendance was amazing. They formed a committe comprising of legal experts who wrote to the developer. They also organized site meetings with the developer every month to monitor the progress. I must say that the estate was completed and these guys are now staying in these houses.

Maybe those of you who bought these houses can try this method. You need to get the contactsof your fellow purchasers and meet on site to deliberate your way forward. You will be amazed on what you can achieve as a team.