FNPF ponders Momi bids, Singh party returns

August 28, 2009 01:48:56 PM

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Disappointed underbidder in the multi-million Momi Bay project auction Fiji-born US-based businessman Jay Singh has returned to the negotiation table, confirming a desire to win over the partially complete resort and add it to his hotel chain. 

Singh’s associate and Suva architect Ashok Balgovind told FijiLive today they had been approached to take part in further negotiations and are hoping to secure the property, after handing in a failed bid of a VAT-inclusive F$35 million at the Tuesday auction.

“Some discussions are taking place, but we cannot say at this stage who we are talking to, only that we have been approached and we are involved in talks. But we hope that by Monday, we would have a clearer idea of things,” Balgovind said.

Stage One of the multi-million dollar Momi project went under the hammer on Tuesday at the Intercontinental Fiji Golf Resort and Spa in Nadi, in an auction conducted by Bayleys Real Estate on behalf of the first mortgagee, Fiji National Provident Fund. 

Singh’s party had, at one point during the auction, thought it had won the bid but was quickly disappointed after Bayleys and FNPF held quick talks which resulted in the handing in of a new $41 million bid from an undisclosed party. 

Afterwards, Balgovind told FijiLive they had refused further talks regarding the property and called the auction proper “a sham and a scam.”

“We were keen to talk on that day but after they put the mark up on it, we were very disappointed. But we are still interested in it,” he said today. 

Meanwhile, negotiations are continuing in Nadi, with the FNPF said to be poring over “a number of bids” including the highest bid of F$41 million plus VAT.

In a statement yesterday, Bayleys said: “With the final bid failing to reach the reserve set by FNPF, negotiation with the highest bidder is continuing, said Bayleys Fiji managing director Philip Toogood, adding that other parties are also continuing to pursue the opportunity, with all offers being presented to FNPF for consideration.”

Toogood told FijilLive today that talks could continue for a little while longer. 

“We’re not just talking to the highest bidder, we are talking to all other parties that have expressed interest,” Toogood said, but declined to say how many parties they were dealing with. 

The auction was attended by a large number of investors and developers and other interested groups, and the bidding opened at F$30 million plus VAT. 

“Good bidding between two parties took the figure to F$35 million plus VAT before it paused. Following private discussions with the first mortagee and also the highest bidder, Bayleys auctioneer Hayden Duncan continued the bidding and both parties carried on, taking the highest bid to F$41 million plus VAT,” the Bayleys statement said.