DID YOU LOSE YOUR PENSION WITH
AKBUK RESORT GROUP?
Akbuk Resort Group are the Developers of the Ramada Resort Akbuk Hotel.
The development was sold to investors as a perfect investment opportunity to put pension funds into.
Turkey used to have a growing tourism industry, so they had no reason for concern in that area. Unfortunately, the development ceased to return the money promised to investors due to the political and military disturbances experienced across Turkey.
This caused a tourism problem which reduced room rates and interest in visiting the country.
Investors bought an interest in a large operating hotel resort situated in Akbuk, Turkey. There are many investors who have done the same, with each investor owning a fraction of the entire property.
Investors include UK individuals, UK pension funds and individuals outside the UK.
To enable lots of unconnected people to have a fractional ownership in the property, the entire property must be split into smaller parts or ‘fractions’. In the case of Akbuk Resort Group, each fraction is held by a separate UK company.
A specific type of company is used for this purpose called a Limited by Guarantee company.
Your ownership in the Hotel is therefore held through a Limited by Guarantee company, and you or your pension scheme is a Member of this. Members of these UK Limited by Guarantee schemes have defined shares in the Hotel, which we call a fractional interest.
The costs for the structure are normally met from the net revenues generated by the Hotel. The remaining surplus is then distributed to investors.
However, where revenues are significantly reduced (as in the current economic climate) and there are insufficient funds to meet the structure costs, it is the responsibility of the investors to pay them.
Many were told they could partake in a buyback scheme however it may not be possible with Akbuk Resort Group as developers do not tend to do this unless the investor has legal backing.
Get in touch with us to see if we could assist you in getting your money back for this investment.