No more private use of Palm Beach Club apartments
Clients who invested in “apartments” in Palm Beach Club, Tenerife are now being told that they can´t use their own apartments for holiday use!
This is the latest in a string of commitments made to investors to be broken. Investors were supposed to get:
· a title deed within 3 years or their money back
· a guaranteed net 4.5% annual return
· 8 weeks holiday use in Palm Beach Club or another of the Silverpoint anchor resorts
Excel Hotels and Resorts have been exploiting Palm Beach Club since January 2018 and until now have been honouring client bookings to use their own apartments for up to 8 weeks a year.
However, Diana Aitchison – former C.O.O. of Silverpoint and current C.E.O. of Excel Hotel & Resorts – is now shamelessly telling investors that from 2020 they will not be able to use their own “apartment” for holiday use. Owners are being told that this will be the case whether or not the company they own enters into the new rental agreement.
A terrible new rental contract
The Nordic Consulting has obtained a copy of the new rental agreement that Excel is trying to push through with the Palm Beach Club investors. We attach a draft copy sent out just this week to an apartment owner, along with the message that their holiday bookings for 2020 have been cancelled.
We strongly recommend that participation owners do not authorise this contract!
This contract is very similar to the one that many owners signed in Beverly Hills Club The Suites. The calculation of the gross payment to owners is essentially a share of the hotel´s profits and many view such a calculation as subject to manipulation. After this calculation owners are then passed the bills for community fees, utilities, taxes and maintenance required by the hotel. Will there be any net income for investors at all after all of these deductions?
In fact, at the time of publication of this article in August 2019, owners in the Beverly Hills The Suites have still not received any payment from 2018! These payments are calculated under a similar contract with Excel and were due by the end of April!
Even if one day investors manage to offload the 52 weeks of timeshare in return for a title deed, this rental contract will make the apartment virtually impossible to sell on the open market.
The action you can take
Now is the time to ask the courts of Spain to cancel the original sales contract and get your money back. We at the Nordic Consulting have extensive experience in compensation claims for investors in SL companies in Palm Beach Club and the good news is that the courts of Spain have been ruling in favour of the investor.
In addition, you need to make sure that you are appropriately represented at the AGMs and other meetings relating to Palm Beach Club. The Nordic Consulting has been providing existing customers with these representations.
With rumours of Silverpoint´s imminent bankruptcy circulating, starting legal action as soon as possible could be very advantageous. If you have invested in Palm Beach Club, make sure you contact Nordic Consulting as soon as possible to find out your best course of action.