The Reef Project in Playa Bonita

Welcome too the forums. I hope someone will be able to answer your questions.

I am still waiting for someone to give me a new project finished on time.

we are in the process of having a Noval condo built in Bavaro and that project is progressing on time. But that project is right where their offices / headquarters are. I see they have started branching out into other areas like yours and Santo Domingo,

@Yebel3

my understanding is that The Reef is to be built on three separate parcels of land that was acquired by Noval for this project.   Apparently there is a title issue with one of the parcels and the issue needs to be resolved by the court before construction can begin.

I hope this answers some of your questions.

@Yebel3

Apparently there are three separate parcels of land that Noval Properties acquired for this project.  My understanding is that there is a title issue on one of the parcels.  The project is delayed until the court resolves the issue.

Hope this answers at least one of your questions.

Dave

@Dave1967 Interesting.  Noval's response to my question was that they were waiting on the results of a 3rd party environmental review.  Thank you for the info.

@Yebel3

The response from Noval may indeed be true.   Quite possibly any title issues, if originally true may be resolved by now.  I do not know.

A third party environmental report does sound plausible to me given that there is a small river (bigger after lots of rain) on the site. 

I expect that is an excuse.  How do you get permits to start without that? How can you sell the project without the basic permits in place? How can construction start without that?

I am not an expert on the process but it doesn't make sense to me.

@planner

whatever the case may be, the project is terribly behind schedule.  However I suspect not everyone is crying about it.  The value of the condos that buyers have contracted to purchase have probably increased in price by 100k, and considering that most buyers have likely put out only 20% of the purchase price thus far,  I'd say there are some folks who are quite ok with the delay. 

Seems just normal here. The more likely scenario is they have run out of money and need to blame something else. If value went up that much then costs went up too!

Seems just normal here. The more likely scenario is they have run out of money and need to blame something else. If value went up that much then costs went up too!
-@planner

I think there are a multitude of complications that can arise in their business.

From what I know of Noval Properties they are an established developer with many projects behind them and some interesting projects ahead.  My estimation is that they are probably more trustworthy than others.

Btw, I am not invested in or connected to this development in any way.  But I am interested because I know the area well and spend time there.

I look down on those parcels from my house and have been happy to see construction hasn't started! (Sorry, not sorry!). As I understand it, quite a few of the developments here in LT have not been permitted yet. One major concern is the infrastructure not being able to sustain the planned growth. We already have major issues with producing enough water, having water consistently available from INAPA, and our streets are already way too crowded.

I really don't understand how developers are allowed to sell apartments when they don't even know if they will be allowed to build!

@Dave1967

It is not 20%. I did buy one. 2/3 of the price must be paid by August 2024 and the remaining third at completion and title. Noval said it is not a breach of contract contract as the company has till March 2025 to complete the project.

    @planner
whatever the case may be, the project is terribly behind schedule.  However I suspect not everyone is crying about it.  The value of the condos that buyers have contracted to purchase have probably increased in price by 100k, and considering that most buyers have likely put out only 20% of the purchase price thus far,  I'd say there are some folks who are quite ok with the delay. 
   

    -@Dave1967

So I have a question about situations like this. We bought pre-venta in 2019 and the house (in a residencial) should be finally ready end of this year. Yes the value has doubled but of course the constructor wants a piece of the pie now. He blames covid for the delays and uses rising material costs for wanting at least 30% more. He was pushing really hard for us to sign a new contract with a much higher price that we of course refused. We can always sell the house back to him at the original price (so he can sell it for double!)

Now the original contract had a fixed price without exceptions/unforseens (which is good for us). The new offered contract has the higher price but also a whole list of exceptions all backing the constructor, he is not accountable for any delays or higher costs so he learned some lessons.

Allthough we should be covered with the original contract I am a bit worried how far they will go to squeeze out extra money. Does anybody have experience with that?

Wow that's an interesting situation. Based on the contract - I would definitely be speaking with a good lawyer

@Papito NL

Contract is a contract with whatever is stated. Though they might try to squeeze you.

    @Dave1967
It is not 20%. I did buy one. 2/3 of the price must be paid by August 2024 and the remaining third at completion and title. Noval said it is not a breach of contract contract as the company has till March 2025 to complete the project.
   

    -@nsalomon1

Does your contract not tie your payment schedule to construction milestones?

@Dave1967

we purchased a condo from Noval that is being built now (Should be done in 2024). Our contract had an initial deposit (20%) and then the remaining payments are based on construction milestones. They have been on track with the schedule and send out monthly pics and videos of the development progress. Overall happy with the progress.

@Harris Levinson

I assume that the hundreds of contracts that Noval has with clients are all basically similar, if not the same.

I am hoping someone who purchased a unit at The Reef might speak up and share their experience and what they have been told by Noval thus far. 

I have a hunch of what is going with The Reef project and how it's going to play out.

Glad to hear your project is progressing on schedule.

My wife and I purchased at the Reef,  definitely not happy and very concerned about the delays.  We have been given a number of different stories about why there are delays but most recently we were told it was because of the environmental study.  With the untimely passing of the Environment Minister and resignation of his replacement Noval was back to square 1. Not sure I buy the excuse.  The worst thing is that Noval has not said a word, which shows evidence of a poorly run organization with little concern for investors.  Nothing has been communicated to investors, pathetic really.  We requested and received permission to stop all payments until construction starts (as of last April).  Small comfort when considerable sums advanced  are still at stake.  Not much good to say about Noval, I am a businessman also and I think Noval is a joke.

Silver Beach was scheduled to start Sept 30th.  Doubtful….

IF any investors from the Reef or Silver Beach want to reach out directly, would love to chat 

Welcome to the forums. Thank you for sharing your first hand experience! 

Sadly poor management and poor communications are common here

@Dave1967 what's your hunch? Curious to hear your thoughts

    @Dave1967 what's your hunch? Curious to hear your thoughts
   

    -@claudettefowler91

My hunch is that when that land/site is eventually developed it won't be called The Reef.

@Dave1967 interesting. Why do you think that? I'm asking as an investor who has bought a property at the Reef and wondering what will happen. Thanks for your response!

Blu Terrenas, another large development planned for LT, has been shut down by the Ministry of the Environment. How these developers are able to market and sell out without permits in place is baffling!

Blu Terrenas

Translation:

Santo Domingo .- Due to environmental damage and violations, the Specialized Attorney for the Protection of the Environment and Natural Resources (Proedemaren) paralyzed the operations of the Blu Terrenas tourism project.

The company DACC EVVESTMENT BLU, SRL, which built the tourist project without the proper environmental permits, carried out excavations and cut trees, affecting the wetlands in the area and the water table.

Covered by a search warrant and complaints received from sectors concerned about the environment, Proedemaren intervened in the facilities of this tourist project, named Blu Terrenas, where a crushing and materials processing plant is also installed, as well as a concrete mixer, which also do not have the proper permits.

The company intervened by Proedemaren is represented by Mr. Vencenzo Odoguardi, who was formally summoned to answer for the environmental violations contained in articles 8, 40, 174, 175.1 and 183 of Law 64-00 on the Environment and Natural Resources, in addition to articles 66.2 and 67.1 of the Constitution of the Dominican Republic.

The Proedemaren, through an inspection report dated September 7, 2023, ordered the stoppage of the work under the provisions of Law 64-00 on the Environment and Natural Resources.

    @Dave1967 interesting. Why do you think that? I'm asking as an investor who has bought a property at the Reef and wondering what will happen. Thanks for your response!
   

    -@claudettefowler91

claudettefowler91  I think the fundamentals have changed since this project was sold.  There is probably 50M more of market value in this project than when it was sold. Not to mention a substantial increase in material and input costs since then. 

@Dave1967  I am also a concerned investor from The Reef. Needless to say, I have stopped paying until I hear a coherent answer as to why the project has not even started. They are incredibly terrible at communicating and it is a simple matter of creating an email blast to all of us. Frankly, it is extremely disappointing because they are pretty good at pumping ”MARKETING VIDEOS” of alleged new projects/properties. Moreover, based on the amount of projects that Noval keeps on putting out, I grow more concerned. All because it makes me think of a Ponzi scheme everyday that passes. How can you sustain future projects, when they can't even finish what they started selling three years ago, that sold out in 4 months? That's significant, and worrisome!!!! If Anyone wants to reach out to me, who is a property owner at The Reef, let's chat. . Thanks

@saptapper Good morning> let's keep in touch. See my comments here in the thread as I feel the same way you do. I am to the point that I want to push it to an investigative news outfit, to try and find out what is going on. Noval Properties have no regards for the investors, since there is no communication coming from them. ultimately, I bought at the Reef trusting they were going to at least start building this year, and I know now it is not going to happen. The more I think of it, if feels like they are putting up project after new project to paid for the ongoing ones like a ponzi scheme. To me, that is what it feels like right now!!!

Agreed, i think we should try to connect with as many Reef and Silver Beach buyers as possible  Maybe there will be strength in numbers.  I confirmed with Noval that Silver Beach did not start as planned, despite being assured permits were not an issue there because they were in place previously.  Atlantida is now further delayed and not started.  As usual no explanation as to why and no new timeline provided (silver B) 

We have friends who bought at Silver Beach. I'll check with them and with their permission, pass along their contact info.

I started at FB group called Silver Beach Las Terrenas.  Welcome to all Silver Beach and The Reef buyers. 

Thanks Dave1967,

I guess i need to update my FB lol. Haven't updated or accepted friend since 2010!  I think that's a great step and appreciate you doing this.  Cheers  to all

I am very upset to hear this news and wishing that things improve for you all in this predicament with The Reef project.  Please keep us updated.

I am allowing the reference to the FB group in this case.  Great idea.  The more you all share in terms of knowledge the better.  Please make sure the FB group also posts in Spanish there are many local owners

@Yebel3

Hello there.  I am a purchaser at the Reef.  Also asked to have my payments stopped after I paid around 30% of the price.  I have also been shocked by the total lack of communication.  I have spoken a couple of times with a salesperson there.  The latest I have been told is that Noval has not yet done the environmental assessment of the land - so no permit as yet.  I travel to LT 1-2 times a year and as yet there is no evidence of any work being done at the site.

@Dave1967

thanks - I just requested to join your FB group - my name on there is Lucy

@Dave1967 i requested membership just now. I'm not an owner/investor in either project, but since I overlook The Reef property and am

not far from Silver Beach, I'm happy to serve as ”boots on the ground” to try to document/verify any reported progress.

@Dave1967 hi there- i just  requested access to the group since saptapper couldnt find it. 😉