First published in Jan 09 by Hazen Colbert in http://vallartarealestate.wordpress.com/
Grupo Iberostar Pulls out of Litibú
Litibu is a major development adjacent to the Four Seasons Resort in Punta de
Mita.Litibu was being developed as a stand alone resort with at least three hotels, two condo developments, townhouse condos and golf courses. The Litibu project was a joint venture involving Mexico’s tourism and land development crown corporation, Fonatur, and one of the world’s largest resort developers, Group Iberostar, among others.
As a result of poor sales and slow cash flow, Grupo Iberostar is walking away from the Litibu project. We do not have further details except to say the Iberostar was not able to find a buyer for their share in this partially completed project and is unwilling to commit any further money to the development.
There are condo projects on the site including La Tranquila. HSC Financial attempted a site visit at La Tranquila in March of 2008 to confirm construction progress and we were denied entry to the grounds without attending a sales presentation. At the time, we had very serious concerns about claims made regarding sales-to-date and construction progress.
We are unable to report on the status of sales contracts for Litibu sub-projects.
Any developments to any projects related to Litibu should have no further funds advanced. If any cash has been advanced, it is probably lost, however we recommend that you hire a local solicitor in an attempt to recover money or to at least document losses.
Hazen S. Colbert lives in Mexico and Canada. He is Managing Director of HSC Financial (Canada) Inc., and its Mexican subsidiary HSC & Associates
COMMENT by Horst G. Steinmeyer
Coordinador ALIANZA de la Costa Verde
The success story of Riviera Nayarit is about to convert itself into a another bubble. ´Pull out´, ´walk away´ and ´bankruptcy´ means ´negative´ investment, doesn´t it ?, i.e. figures published, like the supposedly 350 mio US$ investment committed to 35 projects in 2008 aren´t true anymore, don´t think anybody runs a check on those figures anyway.
´Pull out´ of a major investor in Litibu (Iberostar) and bankruptcy of another (Martinsa-FADESA), who together bought about 80% of the Litibú (Riviera Nayarit) lots from FONATUR about 2 years ago, with promises of multimillion investments in hotels, condos, villas and for massive employment opportunities in the region makes us think that SECTUR, FONATUR and especially the Governor of Nayarit are running the risk of ending up in a ´dream world´.
Everybody in the business knows: There were other ´fold-ins´ in 2008. And there will be more during this year.
Actually we think that this represents a GOLDEN OPPORTUNITY to do some of the pending homework (infrastructure, black water treatments, solve the garbage problems and fresh water issues, spur a true economic community development process like Punta de Mita Foundation starts doing, incl. work on social, cultural, and above all public security issues, prevent further destruction of mangroves, of protected rain forest and fauna, curb increasing beach pollution, etc., etc) …. before starting to promote ´Riviera Nayarit´ again, …. by then, hopefully, coming closer to promises made.
ALIANZA de la Costa Verde: Una red de asociaciones civiles y personas, que promueve el Desarrollo Sustentable en la Bahía de Banderas y Costa Sur de Nayarit.