Fiji holidays as bonuses

Press, 27 September 1983, Page 20

Fiji holidays as bonuses

An investment in the tourist industry with a bonus attached is being promoted by an Auckland company, Man Friday Resort, Ltd, which filed a prospectus yesterday. The public subscription to the 5420,000 float for Man Friday Resort, Ltd, is being offered in parcels of 5000 100 c shares;

Man Friday Resort will purchase holiday rights for its shareholders from Westford Hotels, Ltd, an Auckland company that has negotiated to take over the lease of one of Fiji’s holiday complexes, the Man Friday Resort on the Coral Coast, midway between Suva and Nadi.

Westford Hotels, Ltd, is guaranteeing Man Friday shareholders an annual return of 18 per cent (payable six-monthly) and one week’s free accommodation a year at the resort for every 55000 parcel held. This guarantee will be effective for 26 years, until 2009. The guarantee is covered by a deed of appointment to shareholders as agents for the company, to promote the resort.

A founding director of Westford Hotels, Mr J. M. Strongman, an Auckland marketing consultant, said that shareholders would have no other call on them, nor would they be liable for any debts or calls incurred

by the Main Friday Resort. “In the event of Westford Hotels, Ltd, defaulting on its commitments, Man Friday Resort, Ltd, will have a proportion of retained capital to enable it to immediately resume full control of the resort,” he said.

Mr Strongman said that the Westford proposal differs markedly from the normal time share system in that the lease of the resort has a charge registered over it, and the chattels have a mortgage registered over them in favour of Man Friday Resort, Ltd, which protects investors in the case of any default by Westford Hotels, Ltd. “In most time share sys-

terns there is little protection to investors if the de- - veloper defaults. Another , major difference is that ; under the Westford system ! there is no further call on investors for other expenses such as maintenance and running costs.” Mr Strongman said a public company was chosen as the most effective and stable method of bringing together investors in the project, and because of the protection and the high standards of accountability available with a public company. Westford has appointed an Auckland real estate company, Mcllroy and Associates, as brokers to the issue.