Published 26 August 2009
Bidding for stage 1 of the Momi Bay Resort in Fiji stopped at $F41 million plus VAT yesterday, some $130 million short of satisfying original debt of the mortgagees.
Bayleys Real Estate principal John Bayley and the agency’s Fiji office general manager, Philip Toogood, were negotiating with the highest bidder last night.
The first mortgagee, the Fiji National Provident Fund, took the property to auction. It was owed $60 million. Subordinated lender Bridgecorp Ltd sank $107 million into Momi before its own collapse in July 2007.
Although international interest in the resort had been strong, there were only 2 bidders at the auction, held at the InterContinental Fiji Golf Resort & Spa on Natadola Beach.
The resort was a $US300 million venture by development company Matapo Ltd, which was ultimately owned by Bridgecorp director Gary Urwin & fellow Australian John Fernandez. Their ownership was through UFB Pacific Ltd (Urwin Fernandez Bridgecorp, renamed Real Estate Assets Ltd) of Australia. Mr Urwin & Mr Fernandez owned Urwin Fernandez Pty Ltd, which was a 25.3% shareholder in Bridgecorp Holdings Ltd of Australia.
The first stage of the development comprised over 350 residential sites and a partially completed 9-hole golfcourse, clubhouse & hotel complex.
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Attribution: Bayleys, files, story written by Bob Dey for the Bob Dey Property Report.