The wonderful Waterfront

Five months since I last reported on this magnificent development, so thought it was time for an update.

This was the scene this morning:

So, the same signs on the door as before, and it is clear that there is still no “construction in progress”. But there has been some news.

First, the bad news. The sales pitch from the developer that the noise and filth from the boat park in front of the condo would be eliminated because the boats were going to be moved, has been rather undermined by a recent announcement from City Hall that they intend extending the boat and car parking in that area to serve the tourist industry. Oh dear.

But there is some good news for the wise investors in this landmark development. Last weekend we were driving past the site and the normally locked doors to the “construction site” were open. Exciting times! Perhaps piling was in progress? Perhaps hundreds of tonnes of construction material were being delivered to be crafted into a magnificent edifice by dozens of skilled artisans? Well, no. But there was a bloke sat on a chair collecting money from people who wanted to use the “construction site” as a car park.

No doubt the funds are being deposited into the condo sinking fund for the benefit of all the future owners of this prestigious property which hasn’t quite started yet.

In these difficult times, it is understandable that there can be delays and minor problems. But, as The Waterfront’s web page tells us:

Waterfront Pattaya Bay is backed by Elran Real Estate , a leading international real-estate investor and developer: its worldwide operations and assets total over half a billion Euros. Elran Real Estate develops projects throughout Europe. Russia and Asia.

A publicly listed company. Elran is able to demonstrate over 50 years’ experience and countless success stories.

Here are some recent success stories about Elran Real Estate:

“Elran Real Estate lost NIS 5.2 million from real estate development activities in Thailand and NIS 1.9 million from the real estate activities of subsidiary Rus Basilica, in Russia.”

“Elran Investments no longer consolidates its financial results with those of Elran Real Estate, as the value of the investment in this subsidiary has shrunk to zero and the mother company is not a guarantor for the subsidiary’s debts. Elran Real Estate’s accountants attached a going concern warning to the financial report, noting that by August 2010 the company will have to pay banks and bondholders NIS 87 million, of which only NIS 49 million is on deposit in the company’s accounts.”

Doesn’t sound too promising. Given the need for additional room for parking in the area, perhaps they should scrap the condo and just continue with the car park operations. The “investors” could each be given a cap and take it in turn to sit in the chair and take the parking fees. Not much of a return on their investment; but it’s all they are likely to get.

Comments 🔗

2009-11-26 | MSB says

Does any foreigner make money investing in property development in Thailand ?

2009-11-26 | genuinej says

What’s 49 million NIS in real money?

2009-11-26 | Spike says

MSB, my condo would fetch three times what I paid for it nine years ago, which is less than the four times what I paid for it that I could have got two years ago, but not bad. But I bought it as a home and not an investment and there is still nowhere else I would rather live so it is all rather academic.

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