English
FrançaisWe've received notification today that we will not receive rent for "three quarters" from Elithea the management company who runs Les Jasses De Camargue. I would appreciate any advice from others who have had this problem in other developments. Seamus have you heard about this & what advice would you give.
Annette
Comments
ewanduffy
Les Jasses de camargue no rent
4 July 2008So much for the security of leasebacks. Some thoughts have come to mind on the issue:
Is there a French equivalent of examinership? As most
company law is EU derived, does such a provision, which can be found in Irish
law, exist in French law?
Is there separation of bank accounts for Jasses des
Camargues – i.e. is the income/expenditure for the complex in discrete bank accounts
or is it all lumped into a general account.
Are Elithea deriving an income from the complex (e.g.
management fees, percentage of sales etc)?
Did Elithea not have compensatory non delivery clauses in
the contracts with building contractors or insurance against delays if they
were the main contractor?
Suggested steps to reassure investors
1. No income to be derived by Elithea from Jasses es
Camargues for duration of financial difficulties – i.e., all income over
expenditure to be allocated to paying property owners
2. Separate bank accounts to be maintained, preferably in
trust (i.e., similar to what would happen in an examinership).
3. Monthly management accounts for the complex to be
submitted within a reasonable timeframe by email to any property owner requesting them. As a qualified accountant, I have to work to Day 3 in preparation of accounts, I would suggest this as a standard.
4. If rent payments are delayed, interest to be levied at
late payment in commercial transactions rate (ECB + 7% - set on 1st
July and 1st January each year) therefore currently 11% p.a. calculated
daily until arrears are cleared. Unsecured commercial loans France 10.8% (source
Google) - therefore ECB + 7% is reasonable.
It appears to me, from reading between the lines of the poorly translated document received by me, that they have put insufficient capital into their business and now expect us (the property owners) to grant them an interest free loan.
AnnetteK
Les Jasses de camargue no rent
5 July 2008Seamus thanks for your advice. We stayed there for 9 days at Easter & the residence was definitely ready for renting. we happened to be there at the time of the first owners meeting & Philip Limongi was very "proud " showing the owners around the complex ( those present were French).If we were interested in changing the status to a "normal" property how would we go about it. If we are not getting rent we may as well be free to use it as we wish. Another owner spoke to somebody at Elithea & was told that there is no guarantee that there would be rent in April 09.
katie
Les Jasses de camargue no rent
10 July 2008Hi
I also have a property in this development. I cannot understand how Elithea can claim to be in finnacial difficulty so early in the Lease?? I undersrtood from the Agent that they were a good company with a strong record in the field?
I have a french mortgage on the property and simply cannot meet it for 9mths - a year without the rental income!! Should I advise the bank of the current situation? also how do I go about gettin gthe Lease nulled and the property registered as a normal one?
Any advice greatly appreciated
cordiez
Les Jasses de camargue no rent
15 May 2009Elithea Les Jasses de Camargues were placed into Receivership by the Nimes Commercial Court on 29 April 2009.
All leaseback owners that are owed rents by Elithea must file their claim with the Creditor's Representative, Mr Bernard Roussell in Caissargues (30132). Unpaid rents in respect of which not claim is filed by 29 August (29 June for French residents) will be irremediably lost. Beware!
I strongly suggest all owners concerned to file a claim in Elithea's Receivership. This, at French law, is called 'Declaration de Creance'.