Momi properties up for mortgagee sale

Fiji Live News - 02 June 2010

Abandoned Bure at Momi Bay Resort

The Fiji National Provident Fund is not the only entity to incur losses due to the collapse of the multimillion dollar Momi Bay Resort project as the Unit Trust of Fiji is now making efforts to recover its $12.5 million invested in the project.

The Unit Trust of Fiji has put up over 300 acres of freehold land on the site for mortgagee sale which was to be stage two and three of the development project.

Unit Trust with the Banaban Trust invested in stages two and three of the development at Momi, which would have included the construction of the Ritz Carlton Resort, the expansion of the golf course and residential lots.

Since the project hit financial problems, Unit Trust was directed by the Capital Markets Development Authority to initiate steps to recover the Momi loan which was not being serviced.

Now, Unit Trust has brought in real estate agents, Bayleys to sell off the property through a mortgagee sale.

Bayleys Director Philip Toogood said the final price of sale for the property will be determined by the market.

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The Momi Bay Development project was to have cost around $225m and the Fiji National Provident Fund invested in the first stage of the development investing around $80 million.

An earlier attempt by the FNPF to auction the property fell short of the recovery amount with the highest bid being only $44 million.

The FNPF has since decided to cut its losses and has written off a total $55 million from the Momi Bay Resort project.