With the failure of EcoHouse the Brazilian property developer’s British subsidiary, could see Singapore investors losing up to $50 million and combined with the worldwide investment in the development could bring that number closer to $70 million.
It was reported to the financial times by British based Brazilian lawyer Renata Sa, who is representing the 400 Singapore investors for Sol Acres and other investors from around the world into class-action suits, was quoted as saying, “”This should be a wake-up call.””
Sol Acres in Choa Chu Kang
All the details are not clear but it is no illegal action is being taken against the Brazilian subsidiary of the EcoHouse operations, along with real estate agencies, and financial advisors in the UK that were responsible for handling an escrow account.
During the years 2012 to 2013 there were more than 1000 individual investments made in Singapore and Southeast Asia that were sold by EcoHouse. The British-based company underwent a creditor’s voluntary liquidation last month, which will be presided over by Price Waterhouse Coopers who will handle the liquidation proceedings in Sol Acres.
The Brazilian subsidiary as far as it is known not involved in the liquidation. Media reports however suggest progress has been stalled due to alleged tax impropriates that culminated in a police raid last year. Many investors from Singapore and in Asia have sales and purchase agreements with the Brazilian firm that are not linked directly to the UK based company, which is undergoing liquidation.
Choa Chu Kang EC Launch Date
The eccentric and flamboyant founder of the company Anthony Armstrong Emery is currently in the Middle East attempting to raise additional monies to save his company. However, with the millions of dollars and investments at stake this appears to be up furlong hope for Sol Acres.
Echo house has blamed its woes on the unexpected intervention of the Brazilian police based on malicious, inaccurate and fanciful allegations by competitors and former landowners. $65 million worth of funds are being investigated according to British news sources.
Sol Acres Executive Condo
The British police have also taken an interest in the case, as there is a report stating that the fraud and linked crime online team of the Metropolitan police is conducting an investigation as well. There have been some 200 complaints raised in the UK that could add up to $14 million in investments in Sol Acres.
In 2012, EcoHouse was the best-selling single overseas property investment in Singapore. Now its offices in the Suntec Tower are of course closed. However at one time it was the main attraction for first-time overseas property investors in Southeast Asia as it promised a 20% profit within 12 months on a an investment of $46,000 in one of its social housing properties. This prompted many investors to purchase multiple units, with others grouping their money together with family and friends to buy a single Sol Acres property.
PropertyGuru’s has been unsuccessful in their attempts to reach anyone from the company for comment on the current status of investor’s funds in Sol Acres.