NEWS ALERT Lersuang's Tamarind Hills Condo Project Rescued

One of Phuket's highest profile default ridden developments Tamarind Hills has been restructured and is in the process of project rehabilitation according to new Managing Director Dr. Metta Visessombat who also heads the energy group Sepco Asia. thephuketinsider spoke to Dr. Metta today at the companies new offices on Ban Don Road in Cherngtalay and was updated on the current status of play.

Tamarind Hills which was developed and managed by Lersuang Group has now changed name to Tamarind Hills Layan Co. Ltd; with the former management now fully resigned. Comprised of 142 condominium units of which a total 80 had been sold previously. Designed and launched in two phases with 54 in the first part of which 30 were sold, and 24 units remaining for sale. Phase 2 of 88 units with 50 sold and 38 still for sale.

A sales relaunch is planned for mid December with the remaining units in Phase 1 (24 condos) for sale. Arrangements for financing have been made with the Government Savings Bank who will be bridging loans to recover the ownership of the land which had been secured by third party interests and fund construction to completion. Existing buyers have been offered the ability to retain their units though a premium of 15-20% over the original price in a financial workout scenario. The majority of purchasers have consented to the remedial measures with strident controls of funding and accountability on place. The new developer is now looking at completion and handover starting in April of next year of the initial condos.

The Lersuang Group whose unfinished projects in Phuket include Lersuang Village, Infinity Heights, and Turtle Cove along with another development in Hua Hin were unavailable to comment on this news story. Buyers in Tamarind Hills at launch funded payments into offshore accounts reportedly under the custody of the now defunct Lighthouse Group of Hong Kong. There remains a number of answered questions with the original developers as to the disposition of funds paid to them and also the other mothballed projects. Additionally the situation of a developer who has allegedly transacted land on which they had sold units continues to create unease for many of the purchasers.

From our discussions with Dr. Metta it appears that the current rescue plan has been painstaking methodical and at face value looks to reach some closure for purchasers who bought property and have been in a state of flux for a number of years. There remains no clarity on the status of the other three developments which are tied into separate entities; but the situation does amplify the need for anyone contemplating buying property to seek qualified legal advice.

DO YOU LIKE THIS?

I think that in this case our developer wether you like the personalities or not have made the right decisions and I am sure none of us will loose our money

Bill Barnett responds:
Thanks for the comments.

Whatdoyouwant, 02 Dec 2009 | 11:56 pm

LERSUANG --(edited- the former developers) have been responsible for causing such untold misery to so many investors in TC and Lersuang Village--UNBELIEVABLE-- that they have been able to (edited- mismanage money) so much from so many --without any prosecutions made against them !
Bill Barnett responds:
Thanks for the comment and think we will be hearing more of this case in the days ahead including the other projects.

Marcel, 17 Nov 2009 | 1:45 pm

I am one of the original purchasers of tamarind Hills and after the debacle of lighthouse and Luarsang I have found that Dr Metta has been very instrumental in recovering this project with the utmost professionalism and with Tom Darby also assisting I have now regained a lot of confidence in what was at one stage a lost cause.

I am looking forward to final completion in 2010 and will be out soon to visit my new apartment in Lemongrass 1. Project started in late 2004 so a long time coming but nearly there. Garry C

Garry Corkish, 16 Nov 2009 | 8:35 pm

You say that "the new development firm has distanced themselves from the old Lersuang group and so it is best to judge the two parties as distance individuals". You also say that "... there remains a number of unanswered questions...". Are you aware that Dr. Metta was a director of the aforementioned Lersuang Group until late last year????? Many of the Lersuang staff have also been employed by this new group - how can they be judged as distinct individuals????????? Put simply, how has Lersuang been allowed to take money from people wishing to invest on four projects, without return, and not been prosecuted?

Bill Barnett responds:
Thank you for the thoughtful comments and yes we agree that purchasers in projects which do not materialize should expect lawful recourse. Dr. Metta was very open as to his previous role as a Director and we cannot comment nor assess the financial viability, legality or success of the project rehabilitation. At the same time logic prevails that the rescue plan addresses what to the layman seems the most compelling issues. This be the recovery of the land title, ability to complete the sold units and the commercial proposal to complete the remainder of the project. On paper this would appear to be a best case solution but we leave it to purchasers and the developers group to work to solutions. Certainly the involvement of the Government Savings Bank which is a reputable institution here will assist.

As to the other three projects we are following these stories and will keep update the news as we get more details. Speaking to local developers, agents, attorney's and businesspeople there is a great amount of concern on the situation as the property business for the most part has delivered and remains a key driving economic provider to the local economy. While no doubt the Tamarind story is rife with controversy, its my longstanding belief that matters like this are best not swept under the door mat and that if we can provide information to overseas buyers as to the existing situation that it will indeed help.

As for the issues of actions against the former Directors and Management of the Lersuang Group, we will leave this takes it course in the legal due process system.

Carine Kennedy, 14 Nov 2009 | 4:42 pm

The majority of buyers into Turtle Cove had sought qualified legal advice before making the purchase but it did not help them.

Bill Barnett responds:
It's a very unfortunate situation there are just a handful of projects in Phuket that this has happened to with the vast majority of developers delivering and buyers satisfied. Since Turtle Cove was launched the industry has developed in sophistication with revisions to the condo juristic act and now an escrow act so hopefully future cases like this do not happen. We'd sincerely hope that in a case similar to Tamarind Hills a work out situation is created for the buyers at the other defunct projects.

Maria Wanda Prainito, 14 Nov 2009 | 8:06 am

sorry, but these guys (edited)
Bill Barnett responds:
This continues to be a highly emotional issue here, but the new development firm has distanced themselves from the old Lersuang Group so best to judge the two parties as distinct individuals.

Bill, 13 Nov 2009 | 5:57 pm