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Developers of the $300 million Fiji Beach Resort & Spa, managed by Hilton says it is on the verge of going into receivership because investors are unwilling to invest in Fiji.
The New Zealand Herald reports that Neville Mahon, an Auckland-based developer of the huge luxury property, has written to villa owners saying receivership of Denarau Investments is imminent.
Bank Of Scotland (BoS) and Auckland finance company Strategic had funded the project.
Mahon told the New Zealand newspaper that he has been unable to pay dozens of investors who bought villas at his Hilton Denarau Island project, planned to be eventually expanded and called Fiji Hilton.
The Herald reports, investors are owed $1.2 million for last-quarter 2008 payments and have been complaining for months, but Mahon told them he had funding problems.
BoS had provided a $45 million loan facility and taken over the first mortgage from Strategic Finance, he said. He wanted to pay Strategic $55 million over four years but needed an extra $14 million to keep going.
Mahon said he had done all he could and receivership was the only option.
