The ‘luxury flats’ by the Red Sea that have cost Britons their life savings
BritisH holidaymakers fear they’ve lost their life savings after paying up to £85,000 for beach flats that have never been built, Money Mail has learned.
scores of Britons were convinced to buy luxury apartments at the oasis Marina resort in Hurghada on Egypt’s red sea coast — but many now face financial ruin because it’s still nothing more than a building site.
Despite a five-year battle to force developer iraida Estate agency to finish the work, or repay people, many are out of pocket. and incredibly, flats there are still being advertised on the internet.
‘it’s been dreadful — we’ve had years of hell and we want our money and our life back,’ says stephen Burr, 65, a publican from Bristol who paid £ 56,000 for a two-bed apartment with a balcony.
He and his wife Jane paid iraida in cash — all of it upfront — in 2011.
‘We’ve been promised deadline after deadline, but nothing changes,’ he adds.
Egypt is a popular destination for Britons to invest in holiday homes, despite its distance from the uK. later this month, the national a Place in the sun exhibition will have two firms marketing homes in Egypt.
the oasis Marina resort was first marketed six years ago by iraida Estate agency, an Egyptian developer run by chief executive Ehab shahwan. it was billed as a beach resort with spectacular views of the red sea.
at the time, Egypt had a relatively stable government and a buoyant economy. tourism was booming and hundreds of mainly older couples from the uK and Europe were attracted to iraida’s offices in Hurghada.
Many of these investors had already done plenty of research and were keen to invest. iraida had already built one complex — the separate oasis resort — in the town. it told investors it had bought land and rights to build a new resort by the red sea.
it advertised off-plan, luxury flats from £40,000 to £85,000, to be built over two years.
Compared with a holiday home in spain, Portugal, France or italy, the prices were cheap — and Hurghada had direct flights to the uK. some 200 investors paid for a flat upfront and work began.
then, four years ago, Egypt’s government was toppled in the arab spring.
today, the apartments are uninhabitable empty shells without water or electricity.
Buyers have tried to find out what’s going on, but iraida Estate agency refuses to speak to investors or repeatedly delays appointments.
one British buyer, sylvia gatefield, has won a court ruling in Egypt ordering Mr shahwan to give back her money. But neither she nor any other investors have had a refund.
David lewis, a 70-year-old former car body worker from leamington spa, and his wife susanne lost £40,000 after being lured to a sales meeting by iraida staff.
they had visited Hurghada every year for a decade and fallen in love with the pretty town and its glorious beaches. in november 2009, while strolling through the streets, they stumbled across iraida staff who were displaying a model of oasis Marina.
they were invited to a glossy presentation, where they were sold a dream of owning a beachfront apartment. impressed by the sales pitch and attracted by the low prices, they handed over £ 40,000 for a two- bed apartment. they were told it would take 18 months to complete the complex. Back in the uK, they were emailed updates and told to keep an eye on the website for pictures and new developments.
But after a year-and-a-half, the updates became less regular. after two years, they stopped altogether. the couple tried to call iraida but couldn’t get anywhere.
David says: ‘We’ve been fighting tooth and nail to get our cash back. it’s been an appalling time. ‘ Despite our repeated efforts to set up meetings with Mr shahwan, he keeps on cancelling.’
they’ve spent thousands flying out to Egypt to track down Mr shahwan but have got nowhere.
others who’ve lost money include theresa Farley and her husband ray. the couple, from Plymouth, wanted a place in the sun to spend some time in the winter — and decided to invest in Hurghada.
a local agent introduced them to a representative from iraida. they agreed to put down a £ 51,500 payment towards an apartment costing £85,000.
‘it’s been nothing short of a nightmare,’ says theresa. ‘iraida and its staff have been a horror to deal with. We despair of ever seeing our cash again.’
in May, a number of investors, including the lewises, met officials at the British Embassy in Cairo, and later the attorney general of the red sea governorate, the regional council. a spokesman for the Foreign and Commonwealth office says: ‘We have raised this case, and the issue of property fraud more generally with the Egyptian authorities and will continue to do so.’
the affected investors have now decided to launch a group legal action in a bid to hold Mr shahwan to account, and have hired a lawyer based in Hurghada.
Money Mail managed to track down Mr shahwan.
He says: ‘i’m working hard to solve the problem and i believe we are almost there. My main problem has been the bank, but i’m hoping we finally have movement.’
He says the company will deliver on its promises in 12 months from now. ‘there will be updates on our website in a few weeks,’ he adds.