Villa owners welcome receivers

Completion of the the luxury Fiji Beach Resort & Spa's expansion with an extra 90 villas is now in doubt. Photo / Supplied

New Zealand-based investors in a big Fiji resort have welcomed receivers.

The Villa Owners Association, representing 80 per cent of investors at the exclusive Denarau Island Fiji Beach Resort & Spa managed by Hilton, say they are keen to work with receivers of two companies involved in the property.

This week, Grant Graham and Brendon Gibson of KordaMentha were appointed receivers of Fiji companies Denarau Investments and Denarau International of Nadi. Graham was in Fiji looking at the property this week and said by early next week he might be able to say more.

"It's business as usual for suppliers, holidayers and agents," he said of Hilton Fiji's operation.

The two companies are associated with the luxurious five-star 160-villa beachfront resort where a further 90 villas are either under construction or planned.

Hilton continues to operate the big resort, regardless of the receivership.

Investors are owed at least $1.1 million in unpaid revenue from Hilton guests who stay in their tropical-style villas.

The association said members had endured months of problems but were now hoping for a better situation.

"We realise this has been an unfortunate exercise in the end ... and a frustrating and stressful time for many villa owners. We now have to put that behind us and focus on a positive outcome for owners aimed at ensuring we all realise the full potential of the investment we have made (in the property) and which is trading profitably," the association said this week.

The Villa Owners Association is separate from the Villa Owners' Representative Group chaired by Rob Campbell, the Viaduct Harbour businessman who owns a villa at the resort.

The association wants to meet the group and talk to Graham and Gibson.

"Our committee is meeting in Auckland and we have made a tentative time to meet with the receiver on Friday to discuss ... how we can all move forward with the receiver and Hilton," the association said.

All villa owners had a common objective regardless of which group they had joined, the association said.

"We now all have a common objective. We are positive about the path forward and the opportunity to establish an all-inclusive and transparent operation involving all villa owners," the association said.

It also promised to send members more information and noted ongoing demands for a full audit of the property's finances.

Developer Neville Mahon of Greenlane said last month he had proposed a $105 million repayment plan, involving BoS International (Australia) getting $36 million over two years, Strategic Finance of Auckland getting $55 million over four years and him securing new funding of a further $14 million.

But his offer was rejected and two companies went into receivership.

The association said it is now hoping for better information about owners' villas.

"We have made it clear to the receivers and BoS that it is imperative they work with villa owners for a successful outcome and that any future direction must be completely transparent and include a degree of villa owner control over their investment," the association said.

IN RECEIVERSHIP

DENARAU INVESTMENTS
* Company developing and expanding resort.
* Borrowed money from two financiers.

DENARAU INTERNATIONAL
* Collects and pays villa-owner investors.
* Owes about $1.1 million for three months to December.
* Owes further money to investors for this year.