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Paradise development resort in Fiji owes millions to property investors, report shows

Some 141 investors from New Zealand, 52 from Australia, 16 from the US, 30 from Fiji, one for Dubai and one from Canada, poured millions into Fiji Beach Resort & Spa, a receivership report shows.
They are owned rent on the villas they have bought but have received nothing for many months.

Now receivers have been brought into assess the situation although the resort continues to operate.
Receivers KordaMentha, who were appointed in September, said it is difficult to assess the situation and make catch-up payments but a preliminarily calculation showed investors are owed FJ$2.1 million ($1.5 million).

‘With no sums available the receivers are not in a position to make payments in relation to the pre-receivership period.

The serious matter of outstanding villa-owner revenue is acknowledged and recognised,’ the report says.

Villa owners want a new management structure and have voiced concerns that daily rates have fallen from FJ$350 to FJ$206 and negative press about floods and political instability on the island could be putting off visitors.

However the receivers say they have identified some FJ2.1 million owed to the resorts developers and manager Denarau International and Denarau Investments by the Fiji Islands Revenue Customs Authority and they are actively trying to recover the money. A state authority also owes investors FJ$175,136.

The report also indicates that stage two of the project will be completed soon.

It too has suffered financial difficulties. It includes more villas, a new restaurant and a pool.

‘Our preliminary view is that the works will be completed during the receivership,’ they say.