The History of Riviera Real
2005 - 2010
In 2005, Riviera Real opened a sales office in
the old port of Rocky Point. The Coastal Group
were the sales agents for the development.
Construction was started on a model home and
sales began. Buyers invested about $10 million
dollars in deposits on their purchased
properties.
Subsequently, a dispute arose between prior
owners of the land. Individuals by the name of
Grijalva filed suit against their partners Martin,
and named as additional defendants each entity
or individual that had acquired property in North
Beach, including Playa Dorada, Playa Azul and
Riviera Real. Further construction on the
Riviera Real project ceased.
Unlike the situation with Playa Azul, the
principals of Riviera Real denied that the
litigation involving North Beach had any effect
on their project. Throughout 2007, investors
and potential investors making inquiry into the
status of the project were told that there was a
disagreement between the partners and
construction would begin again shortly. Since
construction never started up again, it is clear
that partner disagreements continued, severely
affecting financing.
In November 2007, an investor discovered the
following:
Old Port sales office had been closed since May
2007.
Ground had not been broken for the structures
of the beach houses, villas or the high rise.
The project is currently fenced off restricting
access to the property and the model home is
not open for inspection.
Per contracts between investors and
developers, the completion dates of the high
rise condominium structure was November 30,
2007. Refunds were to be given to investors if
delivery dates were not met. No refunds have
been forthcoming.
2005 - 2010
In 2005, Riviera Real opened a sales office in
the old port of Rocky Point. The Coastal Group
were the sales agents for the development.
Construction was started on a model home and
sales began. Buyers invested about $10 million
dollars in deposits on their purchased
properties.
Subsequently, a dispute arose between prior
owners of the land. Individuals by the name of
Grijalva filed suit against their partners Martin,
and named as additional defendants each entity
or individual that had acquired property in North
Beach, including Playa Dorada, Playa Azul and
Riviera Real. Further construction on the
Riviera Real project ceased.
Unlike the situation with Playa Azul, the
principals of Riviera Real denied that the
litigation involving North Beach had any effect
on their project. Throughout 2007, investors
and potential investors making inquiry into the
status of the project were told that there was a
disagreement between the partners and
construction would begin again shortly. Since
construction never started up again, it is clear
that partner disagreements continued, severely
affecting financing.
In November 2007, an investor discovered the
following:
Old Port sales office had been closed since May
2007.
Ground had not been broken for the structures
of the beach houses, villas or the high rise.
The project is currently fenced off restricting
access to the property and the model home is
not open for inspection.
Per contracts between investors and
developers, the completion dates of the high
rise condominium structure was November 30,
2007. Refunds were to be given to investors if
delivery dates were not met. No refunds have
been forthcoming.
| Rocky Point Exposed |
| Be Careful, Be Very Careful! |
DEVELOPMENT INTRODUCED IN 2005
STATUS IN 2010
| RIVIERA REAL |
| Letter to Riviera Real Investors dated January 24, 2008 from the developers of Riviera Real As we have informed you in the past, Khelo has manifested their position in completing their project, regardless of the obstacles that have been presented. investment groups, who will come to bring a new impulse to the business, resulting in the completion of the construction which you are aware of. Meanwhile this occurs and completely understanding your valid concerns, by our decision, we will proceed to elaborate a voluntary document (perfectly valid by law) by which we will guarantee to you that your investment is secure. And given the eventuality that the property and project of Khelo is sold and the mortgage is paid, the condo investors can recuperate their investment. We want you to know and feel your investment will be protected. Respectfully Unsigned Khelo Internacional Developers S. de R.L. de C.V. |
| "I can't believe I bought a condo property that was not owned free and clear from day one." Riviera Real investor |
| "In a conversation I had with one of the developers, I was told I would not be getting my refund." Riviera Real investor |
It is apparent the developers will not be
refunding any monies to investors and
no further development will occur until
the developers can obtain additional
funding from investors - or the
developers are bought out - and the
mortgage is paid off.
The fact that the property had a
mortgage on it was never disclosed to
investors.
The ongoing lawsuit could possibly
affect ownership of the property.
________________________________
According to the accompanying letter
dated February 28, 2008;
the developers claim " ... the land we
own....." when in fact there is a mortgage
on the land.
"... we are preparing the LIEN document,
which we believe will assure the
recovery of funds ..." There is no
assurance that a lien , especially a
secondary lien will recover funds.
"... we inform you that we will not
support individual solutions for the
actions of those that choose to
compromise a rapid solution for all our
condominium investors. ..." This is
clearly a threat to any investor who sues
for return of investment.
"We once again appeal to your good
judgment and request an additional
waiting period..." This stall tactic is
similar to that used on those who
invested in North Beach in early 2000.
refunding any monies to investors and
no further development will occur until
the developers can obtain additional
funding from investors - or the
developers are bought out - and the
mortgage is paid off.
The fact that the property had a
mortgage on it was never disclosed to
investors.
The ongoing lawsuit could possibly
affect ownership of the property.
________________________________
According to the accompanying letter
dated February 28, 2008;
the developers claim " ... the land we
own....." when in fact there is a mortgage
on the land.
"... we are preparing the LIEN document,
which we believe will assure the
recovery of funds ..." There is no
assurance that a lien , especially a
secondary lien will recover funds.
"... we inform you that we will not
support individual solutions for the
actions of those that choose to
compromise a rapid solution for all our
condominium investors. ..." This is
clearly a threat to any investor who sues
for return of investment.
"We once again appeal to your good
judgment and request an additional
waiting period..." This stall tactic is
similar to that used on those who
invested in North Beach in early 2000.
| Participants in Riviera Real Eberardo & Reynaldo Grijalva - Land owners Juan Luis Martin Jr. & Sr.- Land owners German & Estela Palacio - Land owner Scott Poturalski - Sales Agent, Coastal Group Khelo International - Development Company Monte Bartholomew - Developer Richard Sumpter - Developer |
| The information herein has been obtained from various sources and is not guaranteed by rockypointexposed.com. Prospective investors are advised to conduct their own investigation of the information contained herein before proceeding with any real estate investment in Rocky Point (Puerto Penasco). The information contained on this site is not legal advice. While the highest standards were used in compiling this information it should not be considered legal advice and all legal questions should be handled by appropriate representation. Copyright rockypointexposed.com. All rights reserved. Web Hosting by Yahoo! |
| "When our lawyer told Khelo's lawyer that we would start arbitration to recoup our money, he threatened us to be very careful. That only the people that were 'quiet' would ever see their money back and that if we attempted to go legal, we could kiss our money goodbye". Riviera Real investor |
| email letter to Riviera Real Investors dated February 28, 2008 from the developers of Riviera Real February 28, 2008 DEAR RIVIERA REAL CONDO INVESTORS, Pursuant to what we have informed you previously, we are in the process of negotiating with investors who continue with the Riviera Real project. The problems that occurred and continue occurring at NORTH BEACH with regard to the lawsuit between the NORTH BEACH partners has been duly assimilated by the possible project investors, who just as we, noticed that the problem did not involve us to a large degree, despite the fact that eventually it would create an obstacle. Nonetheless, they stated their trust in the project’s development. Unfortunately, the real estate crisis in the United States appeared during these negotiations, which lead possible investors to repose their participation in our project. This delayed these negotiations which we expected to conclude between December 2007 and January of this year. Today we can tell you that we continue with talks geared to settle said participation, because it so happens they are convinced that Riviera Real is, if not the best project in Puerto Penasco, one of the best; therefore, we have a high level of confidence, that this problem will be solved within a three month period and, furthermore, the construction of the building will be restarted by then. We do not know if it was due to bad intentions or misinformation, but we see communications that we did not have the proper projects plans and permits, and that we disposed of enormously large amounts of monies on non-project activity. This situation or assertion is completely false, since we have not taken the sums that are being stated and that we have actually used the majority of said funds for the development of projects plans, administration, permits, the construction of the model home, earth movement and compacting activities, etc. On the other hand, we have seen the concern of some to file legal proceedings against us. In this respect, we wish to reiterate that your investments are safe. In the worst case scenario, the land we own and the amount of the title insurance we have with FIRST AMERICAN TITLE INSURANCE, will return the funds to all those who trusted us and executed sales-purchase promise agreements. To date, we are preparing the “LIEN” document, which we believe will assure the recovery of funds for those that choose not to participate in actions that may jeopardize a timely solution for all condominium investors. We plan to have this initial draft available for your or your attorney’s review, within the next 2 weeks. We intend to solve this problem jointly and therefore, we inform you that we will not support individual solutions or the actions of those that choose to compromise a rapid solution for all our condominium investors. Once the participation of the new project investors has been consummated, we will provide to everyone, the options which we have informed you of previously (refunding the monies or continuing with the project). Due to the foregoing, we once again appeal to your good judgment and request an additional waiting period to solve the common problem. Sincerely, (Unsigned) Khelo Internacional Developers S. de R.L. de C.V. |
Visit www.rockypointexposed.com/blog to post a comment. |
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DEAR RIVIERA REAL CONDO INVESTORS,
Pursuant to what we have informed you previously, we are in the process of negotiating with investors who continue with the
Riviera Real project. The problems that occurred and continue occurring at NORTHBEACH with regard to the lawsuit between the
Northbeach partners has been duly assimilated by the possible project investors, who just as we, noticed that the problem did not
involve us to a large degree, despite the fact that eventually it would create an obstacle. Nonetheless, they stated their trust
in the project’s development.
Unfortunately, the real estate crisis in the United States appeared during these negotiations, which lead possible investors to
repose their participation in our project. This delayed these negotiations which we expected to conclude between December 2007
and January of this year. Today we can tell you that we continue with talks geared to settle said participation, because it so
happens they are convinced that Riviera Real is, if not the best project in Puerto Peñasco, one of the best; therefore, we have a
high level of confidence, that this problem will be solved within a three month period and, furthermore, the construction of the
building will be restarted by then.
We do not know if it was due to bad intentions or misinformation, but we see communications that we did not have the proper
projects plans and permits, and that we disposed of enormously large amounts of monies on non-project activity. This situation or
assertion is completely false, since we have not taken the sums that are being stated and that we have actually used the majority
of said funds for the development of projects plans, administration, permits, the construction of the model home, earth movement
and compacting activities, etc.
On the other hand, we have seen the concern of some to file legal proceedings
against us. In this respect, we wish to reiterate that your investments are safe.
In the worst case scenario, the land we own and the amount of the title insurance
we have with FIRST AMERICAN TITLE INSURANCE, will return the funds to all
those who trusted us and executed sales-purchase promise agreements. To date,
we are preparing the “LIEN” document, which we believe will assure the recovery
of funds for those that choose not to participate in actions that may jeopardize a
timely solution for all condominium investors. We plan to have this initial
draft available for your or your attorney’s review, within the next 2 weeks.
We intend to solve this problem jointly and therefore, we inform you that we will not support individual solutions or the actions of
those that choose to compromise a rapid solution for all our condominium investors. Once the participation of the new project
investors has been consummated, we will provide to everyone, the options which we have informed you of previously (refunding
the monies or continuing with the project). Due to the foregoing, we once again appeal to your good judgment and request an
additional waiting period to solve the common problem.
Sincerely,
Khelo Internacional Developers S. de R.L. de C.V.
| Unsigned letter from Khelo International Developers dated Feb. 28, 2008 |
| Since this letter was sent to Riviera Real buyers over 2 years ago, First American Title has not paid any money to investors/buyers. It is apparent that title insurance does not necessarily guarantee that any real estate investment is safe. |
This is what we learned while we were there. If I don’t get everything exactly correct, I apologize as I was busy trying to record as
much as possible. Also, I have an email distribution list that has duplicate names but hopefully I have not omitted anyone. If
anyone you know has not received a copy of this please forward it to them.
We met at the Pemex station at Los Conches and boarded a bus out to the site, arriving at 12:00. There were approximately 17
investor units represented by the attendees out of what I have heard estimated to be 30 or 31 total units sold. In addition to the
investors, the following were in attendance: Ricardo, Monte, their attorney, Enrique Almeida Velazquez, his son (who interpreted
for Enrique) and another attorney who travelled from Mexico City and Scott Poturalski from The Coastal Group.
Once at the site, the attorney, Enrique Velazquez began going through a Power Point presentation that highlighted the time
frames, activities that had taken place, and excerpts from key documents. We had an interactive discussion between the
investors, Ricardo, Monte, and Enrique as we walked through the presentation.
I do not have an exhaustive list of what was discussed, but I’ll try to cover as many of the key points that I was able to write down.
On Sept 9, 2005, Khelo Internacional entered into a Sales Agreement with the bank trust (Inmobiliaria) that held title to the North
Beach property. The Grihalva’s and the Martin’s (the Spaniards) were partners in the North Beach master development. The
Grihalva’s provided the land and the Martin’s were to provide the infrastructure development, including the water desalination,
electrical, water, paved roads, etc. The Inmobiliaria held the title and it was with the Inmobiliaria that Khelo signed the Sales
Agreement.
The total sales price was $3,073,930 USD for 26,272 square meters of property. The Sales Agreement called for $1,000,000
down payment (which was paid), plus 24 monthly payments of $89,656.29.
A title policy was written by First American Title by their representative, Tularu Murdock, out of their Miami office. There had been
an earlier lawsuit on the property 8-10 years ago that had been resolved and at the time that First American issued their title
policy, there were no remaining title issues. The Title Policy issued is #INT-O 101340, File # MEX 2005-03052.
Many permits were filed, including the notarized construction permit #560, filed in Hermosillo on December 22, 2006 for 114
condo units and 12 villas, with a fee paid of $1,837,505.36 pesos. Apparently the rules for permits changed in 2007, so that
construction permits filed pre-2007 were filed in Hermosillo whereas all permits issued in 2007 and later are to be filed in the city
where the project is. This is why there is no permit on record in Rocky Point.
Clause 24 of the Sales Agreement identifies the terms and conditions of payment: The sellers have 180 days in which to deliver
all the infrastructure improvements with specifications such as 1.4 liters of water/second, electrical service sufficient for the
project, etc. Once the infrastructure was in place, then 24 equal payments of $89,656.29 would begin. Thus, if the obligations of
the sellers had been met on time, the first payment would have begun on March 8, 2006 and continued through until February 8,
2008. No payments would be made until the infrastructure was in place.
On January 6, 2006, The Second Mercantile Court of Hermosillo received notification of the lawsuit that named all North Beach
developments, including Khelo. As a result of the lawsuit, all permits and all construction activity was halted. Work on
infrastructure development also stopped.
Khelo filed notarized Documents #3827 on May 1, 2006 and Document #4084 on November 3, 2006 stating that the necessary
infrastructure was not completed per terms of the Agreement.
Even though the infrastructure was not yet in place per terms of the Sales Agreement and they had not received any bill from the
sellers, on November 9, 2006, Khelo sent the first month’s check of $89k along with a petition to the court to accept the check on
behalf of the sellers. The court rejected the petition and Khelo was left with no method to attempt future payments. Again, Khelo
was not obligated to begin any payments as the terms of the Sales Agreement had not yet been met by the sellers.
During the period of January, 2006 when the lawsuit was filed and June, 2006 Khelo began discussions with the Grihalva’s about
the possibility of releasing their permitting, licensing, and construction activities from the litigation. Khelo could not directly
negotiate about being released from the lawsuit as this was the specific domain of the title companies and to do so would run the
risk of invalidating their title policy. In July, 2006, the Grihalva’s released these activities. Development could proceed at any
time, however, the overall lawsuit would still be a cloud on the title until it is removed. What this means is that any potential
investor group COULD resume development if they were confident that the lawsuit was going to be resolved in a reasonable
period of time. The Grihalva’s made an appearance at the meeting as a show of support for Khelo, but they did not speak. I’m
not sure if I have this correct, but I believe that due to the nature of the lawsuit, the Grihalva’s may not specifically exclude one
development from the lawsuit even if they wished to do so.
Ricardo and Monte said that their discussions with the primary investor group has been going more slowly than hoped, but that
they are simply doing their due diligence. The investor group is a Mexico City firm that would have money, materials, and
manpower to complete the project from start to finish without end-investor money. The group understands that the first order of
business is to resolve the claims of investors and honor the terms of their individual contracts whether to refund money or to
deliver condo/villa units.
No time commitments were made, but Ricardo said that he thinks they will be making a decision within several months. Also, as
regards time frames, the Grihalva’s lawsuit has been making its way through the courts and, as appeals are being exhausted, this
too is making progress towards ultimate resolution, especially given pressures and negotiations being conducted by various
parties, including government officials, title companies, and others. No one is promising anything, but RUMORS ONLY out of
Hermosillo are that this may come to a conclusion within 6 months or so.
As a group, we were allowed to see the substantial books of notarized permits, licenses, architectural drawings, payment
vouchers, and the Sales Agreement. These were in Spanish, but, especially with the Sales Agreement, one could see the
clauses referred to in the presentation. There were no summary financial statements available to view; however, there was a
book approximately 2-3 inches thick with copies of all checks and receipts.
A brief discussion was held regarding the voluntary lien. Their attorney said that each individual investor should send an email
directly to him at xxxxxxxxx@prodigy.net.mx . He will then reply with a confidentiality agreement. Once this is signed and
returned, a copy of the voluntary lien will be sent. Neither the signing of the confidentiality agreement nor the receipt of the
voluntary lien form will result in you signing away any rights granted by your contract. As many receive and wish to review these
documents, xxxx xxxx and others offered a suggestion to collectively hire a Mexican attorney to review this lien and assess it for
us. Costs could thus be shared. One of the investors had a Mexican attorney he knew well who was specialized in Mexican real
estate issues. I will look for xxxx to provide more information regarding this.
Impressions/Comments:
Ricardo and Monte seemed very sincere and answered all questions posed. The meeting lasted until 4:00 so a lot of discussion
took place. I believe that Ricardo and Monte wish to bring this to a successful outcome not only for them, but also for each of us
individual investors. They are the only developers who engaged the Grihalva’s in a dialog and they are one of the few if not the
only developer who have maintained any kind of dialog with their individual investors. Other developers appear to have taken the
stance that they will wait until the title companies pay off at some point in the future and at that time address the investor issues.
A number of investors at the meeting reiterated that the biggest issue for them was that there had been no communication from
Khelo and they were left to imagine the worst. I would challenge Ricardo and Monte to address this going forward.
Regards,
Riviera Real Investor
much as possible. Also, I have an email distribution list that has duplicate names but hopefully I have not omitted anyone. If
anyone you know has not received a copy of this please forward it to them.
We met at the Pemex station at Los Conches and boarded a bus out to the site, arriving at 12:00. There were approximately 17
investor units represented by the attendees out of what I have heard estimated to be 30 or 31 total units sold. In addition to the
investors, the following were in attendance: Ricardo, Monte, their attorney, Enrique Almeida Velazquez, his son (who interpreted
for Enrique) and another attorney who travelled from Mexico City and Scott Poturalski from The Coastal Group.
Once at the site, the attorney, Enrique Velazquez began going through a Power Point presentation that highlighted the time
frames, activities that had taken place, and excerpts from key documents. We had an interactive discussion between the
investors, Ricardo, Monte, and Enrique as we walked through the presentation.
I do not have an exhaustive list of what was discussed, but I’ll try to cover as many of the key points that I was able to write down.
On Sept 9, 2005, Khelo Internacional entered into a Sales Agreement with the bank trust (Inmobiliaria) that held title to the North
Beach property. The Grihalva’s and the Martin’s (the Spaniards) were partners in the North Beach master development. The
Grihalva’s provided the land and the Martin’s were to provide the infrastructure development, including the water desalination,
electrical, water, paved roads, etc. The Inmobiliaria held the title and it was with the Inmobiliaria that Khelo signed the Sales
Agreement.
The total sales price was $3,073,930 USD for 26,272 square meters of property. The Sales Agreement called for $1,000,000
down payment (which was paid), plus 24 monthly payments of $89,656.29.
A title policy was written by First American Title by their representative, Tularu Murdock, out of their Miami office. There had been
an earlier lawsuit on the property 8-10 years ago that had been resolved and at the time that First American issued their title
policy, there were no remaining title issues. The Title Policy issued is #INT-O 101340, File # MEX 2005-03052.
Many permits were filed, including the notarized construction permit #560, filed in Hermosillo on December 22, 2006 for 114
condo units and 12 villas, with a fee paid of $1,837,505.36 pesos. Apparently the rules for permits changed in 2007, so that
construction permits filed pre-2007 were filed in Hermosillo whereas all permits issued in 2007 and later are to be filed in the city
where the project is. This is why there is no permit on record in Rocky Point.
Clause 24 of the Sales Agreement identifies the terms and conditions of payment: The sellers have 180 days in which to deliver
all the infrastructure improvements with specifications such as 1.4 liters of water/second, electrical service sufficient for the
project, etc. Once the infrastructure was in place, then 24 equal payments of $89,656.29 would begin. Thus, if the obligations of
the sellers had been met on time, the first payment would have begun on March 8, 2006 and continued through until February 8,
2008. No payments would be made until the infrastructure was in place.
On January 6, 2006, The Second Mercantile Court of Hermosillo received notification of the lawsuit that named all North Beach
developments, including Khelo. As a result of the lawsuit, all permits and all construction activity was halted. Work on
infrastructure development also stopped.
Khelo filed notarized Documents #3827 on May 1, 2006 and Document #4084 on November 3, 2006 stating that the necessary
infrastructure was not completed per terms of the Agreement.
Even though the infrastructure was not yet in place per terms of the Sales Agreement and they had not received any bill from the
sellers, on November 9, 2006, Khelo sent the first month’s check of $89k along with a petition to the court to accept the check on
behalf of the sellers. The court rejected the petition and Khelo was left with no method to attempt future payments. Again, Khelo
was not obligated to begin any payments as the terms of the Sales Agreement had not yet been met by the sellers.
During the period of January, 2006 when the lawsuit was filed and June, 2006 Khelo began discussions with the Grihalva’s about
the possibility of releasing their permitting, licensing, and construction activities from the litigation. Khelo could not directly
negotiate about being released from the lawsuit as this was the specific domain of the title companies and to do so would run the
risk of invalidating their title policy. In July, 2006, the Grihalva’s released these activities. Development could proceed at any
time, however, the overall lawsuit would still be a cloud on the title until it is removed. What this means is that any potential
investor group COULD resume development if they were confident that the lawsuit was going to be resolved in a reasonable
period of time. The Grihalva’s made an appearance at the meeting as a show of support for Khelo, but they did not speak. I’m
not sure if I have this correct, but I believe that due to the nature of the lawsuit, the Grihalva’s may not specifically exclude one
development from the lawsuit even if they wished to do so.
Ricardo and Monte said that their discussions with the primary investor group has been going more slowly than hoped, but that
they are simply doing their due diligence. The investor group is a Mexico City firm that would have money, materials, and
manpower to complete the project from start to finish without end-investor money. The group understands that the first order of
business is to resolve the claims of investors and honor the terms of their individual contracts whether to refund money or to
deliver condo/villa units.
No time commitments were made, but Ricardo said that he thinks they will be making a decision within several months. Also, as
regards time frames, the Grihalva’s lawsuit has been making its way through the courts and, as appeals are being exhausted, this
too is making progress towards ultimate resolution, especially given pressures and negotiations being conducted by various
parties, including government officials, title companies, and others. No one is promising anything, but RUMORS ONLY out of
Hermosillo are that this may come to a conclusion within 6 months or so.
As a group, we were allowed to see the substantial books of notarized permits, licenses, architectural drawings, payment
vouchers, and the Sales Agreement. These were in Spanish, but, especially with the Sales Agreement, one could see the
clauses referred to in the presentation. There were no summary financial statements available to view; however, there was a
book approximately 2-3 inches thick with copies of all checks and receipts.
A brief discussion was held regarding the voluntary lien. Their attorney said that each individual investor should send an email
directly to him at xxxxxxxxx@prodigy.net.mx . He will then reply with a confidentiality agreement. Once this is signed and
returned, a copy of the voluntary lien will be sent. Neither the signing of the confidentiality agreement nor the receipt of the
voluntary lien form will result in you signing away any rights granted by your contract. As many receive and wish to review these
documents, xxxx xxxx and others offered a suggestion to collectively hire a Mexican attorney to review this lien and assess it for
us. Costs could thus be shared. One of the investors had a Mexican attorney he knew well who was specialized in Mexican real
estate issues. I will look for xxxx to provide more information regarding this.
Impressions/Comments:
Ricardo and Monte seemed very sincere and answered all questions posed. The meeting lasted until 4:00 so a lot of discussion
took place. I believe that Ricardo and Monte wish to bring this to a successful outcome not only for them, but also for each of us
individual investors. They are the only developers who engaged the Grihalva’s in a dialog and they are one of the few if not the
only developer who have maintained any kind of dialog with their individual investors. Other developers appear to have taken the
stance that they will wait until the title companies pay off at some point in the future and at that time address the investor issues.
A number of investors at the meeting reiterated that the biggest issue for them was that there had been no communication from
Khelo and they were left to imagine the worst. I would challenge Ricardo and Monte to address this going forward.
Regards,
Riviera Real Investor
| Meeting called by developers in Rocky Point in April, 2008 . As reported by a Riviera Real Investor |
| Visit www.rockypointexposed.com/blog to post a comment. |
| Unsigned letter from khelo International Developers dated January 11, 2010 |
January 11, 2010
Dear Condo Investors,
As you are aware, the litigation in NORTHBEACH is practically entering into its fifth year. As to date, there is no short time
solution in view. Regardless, we continue to insist for First American Title Insurance Company to come to an arrangement and
find a solution as quickly as possible.
In regards to us, we are still in negotiations with the interested investors in the project. They are very interested in investing in
the project and in Mexico. Now in day, we are involved in negotiations with them in regards to terms and guaranties of the
investment. And we are just waiting for them to finish their part of their negotiations with their financial funding group.
We are aware that these negotiations have fallen behind considerably, but this is a result of the behavior and devaluation of the
real estate market and the lack of financing for such projects. We all thought that these negotiations would end some time ago
and we could close by December, but the market conditions and the need of special guaranties, along with the security of
funding for the return of your investments, continues to have us negotiating and working on closing the deal.
We estimate that in the next 3 months or sooner, we will have clarity in this investment, for which we will be in a position to meet
with you and talk about the investment you trusted us with.
We appreciate your patience and we will keep you informed.
Sincerely,
KHELO INTERNACIONAL DEVELOPERS S. DE R.L. DE C.V.
Dear Condo Investors,
As you are aware, the litigation in NORTHBEACH is practically entering into its fifth year. As to date, there is no short time
solution in view. Regardless, we continue to insist for First American Title Insurance Company to come to an arrangement and
find a solution as quickly as possible.
In regards to us, we are still in negotiations with the interested investors in the project. They are very interested in investing in
the project and in Mexico. Now in day, we are involved in negotiations with them in regards to terms and guaranties of the
investment. And we are just waiting for them to finish their part of their negotiations with their financial funding group.
We are aware that these negotiations have fallen behind considerably, but this is a result of the behavior and devaluation of the
real estate market and the lack of financing for such projects. We all thought that these negotiations would end some time ago
and we could close by December, but the market conditions and the need of special guaranties, along with the security of
funding for the return of your investments, continues to have us negotiating and working on closing the deal.
We estimate that in the next 3 months or sooner, we will have clarity in this investment, for which we will be in a position to meet
with you and talk about the investment you trusted us with.
We appreciate your patience and we will keep you informed.
Sincerely,
KHELO INTERNACIONAL DEVELOPERS S. DE R.L. DE C.V.
Unsubstantiated rumors indicate that the delays in resolving the lawsuit are coming directly from the office of
Governor Bours. Some claim that the lawsuit between the Grijalvas and Martin is a ploy to delay any further
development on North Beach until Governor Bours leave office in 2009. It is common knowledge that he and his
family have invested millions of dollars in real estate developments in Puerto Penasco. Upon leaving office, he and
his family would then acquire all of prime North Beach property worth an estimated $650 million to continue
multi-million dollar developments, leaving the original North Beach investors holding the bag for millions of dollars of
their investments.
Governor Bours. Some claim that the lawsuit between the Grijalvas and Martin is a ploy to delay any further
development on North Beach until Governor Bours leave office in 2009. It is common knowledge that he and his
family have invested millions of dollars in real estate developments in Puerto Penasco. Upon leaving office, he and
his family would then acquire all of prime North Beach property worth an estimated $650 million to continue
multi-million dollar developments, leaving the original North Beach investors holding the bag for millions of dollars of
their investments.
| Stay tuned for the next unsigned letter from Khelo Internacional within the "next three months...." |