Investors caught in Lynn scandal fear demands
INVESTORS in the €60m Portuguese resort promoted by Michael Lynn, the solicitor and property developer at the centre of a major investigation by the Law Society, are concerned they will have to hand over more money to developers over the next few weeks to secure their investment. Some are due to pay a second instalment. They are worried they will be held in breach of contract if they fail to do so.
One of the resorts promoted by Lynn's overseas property company, Kendar Global Properties, is the Costa de Cabanas resort in the Algarve. Although about 76 apartments in this resort have already been completed, the Sunday Independent understands that over 200 apartments have yet to be built.
Two-bed apartments in this resort are priced from €255,000 while two-bed penthouses are priced from €263,00.
Investors have paid initial deposits of between 10 and 30 per cent to secure these properties but some investors bought the apartments at a discount by paying the full amount upfront.
In a letter sent to Irish investors last week, Kendar Portugal, which is part of Lynn's overseas property empire, told investors that "all assets in Portugal are owned by Kendar Portugal and therefore operate under the guidance of Portuguese law". The letter also stated that investors would receive their properties "as contractually agreed".
"This means they could theoretically say to us that we are breaking the contract by not paying the second instalment," said one concerned investor.
About 20 Irish people have invested at least €200,000 in properties in the Dominican Republic, which were promoted by Kendar, according to a London solicitor contacted by the investors.
Some GAA and other sports players may also have invested in some of the properties promoted by Lynn. Kendar has sponsored a number of sports events and teams over the last few years and the company offered discounts to players to entice them to invest in overseas properties. Last year, Kendar offered players on one Belfast GAA team a €1,100 discount off a one-bedroom apartment in Bulgaria valued at €55,000.
Lynn declined to comment last weekend and Kendar Portugal did not return our call.
- Louise McBride
