Updated: Nov 15, 2022
A number of Owners have got in touch over the last few days to tell of of a series of letters sent to Fractional Owners which reveal a dispute between 2 companies called Fractional Property Solutions Limited and TRG Founder Memberships Holdings Limited. We appreciate this may be unsettling, and we are keen to provide any reassurance and guidance as we can. Firstly, let us reassure you about a couple of key points:
- Neither of these companies have any direct involvement in the day-to-day running, renting, maintaining of your properties. These continue to be run by TRG in Cape Verde and we are pleased to say that the opening up of business throughout 2022 continues and occupancy level in October are strengthening towards the traditionally busiest season of the year. None of this is in any way affected by any dispute between these 2 companies.
- As most of you know, we were deeply concerned by an attempt made by those involved in Fractional Property Solutions Limited to direct funds away from the Owners and directly to themselves. We conducted an extensive survey of Members, speaking to thousands directly. You made it clear that you did not want your income directed to FPSL, so we have taken the policy to ONLY send income where directed by the Owners. While there has not been a great deal of income so far, some of you have started to receive some income and the majority will have seen the properties start to generate income. To be clear: TRG will NOT send any of your income to either TRGFMH or FPSL.
As you know, since the start of the Sua Casa service we have been working hard to provide as much clarity and support to Owners as we can. We have supported hundreds of you already and plan to continue expanding our support and range of services. Thank you to those of you who have sent messages of support and thanks. We continue to work with many others in resolving their individual problems and issues. Sua Casa does not charge and has not charged for this service: we are 100% funded by TRG.
We have seen copies of some or the correspondence that some Owners have received. We note in particular some untruths in these documents and TRG will be considering what action we might take. However, we wanted to clarify some items for you:
- TRG worked with FPSL (and its owners/directors) to establish the Fractional Structure for which TRG paid FPSL significant sums - running into the millions. TRG became increasingly concerned with the service and value for money provided by FPSL and so the arrangements with them came to an end in 2018. TRG have not engaged FPSL or any related party in any format since that time. If any Owners wish to directly engage FPSL to support them then that is a matter between you and FPSL. If you have directly engaged FPSL and wish to pay them for their services, that is a matter for you. No money you pay to FPSL goes towards TRG, the upkeep of your property or any TRG responsibilites.
- We understand that some of our and FPSL’s communications are confusing. To be clear, TRG does NOT require you to pay FPSL at all and any arrangement between TRG and FPSL is a matter for you.
- TRGFMH is NOT part of the TRG Group and is not owned, controlled or in any way connected with TRG. TRGFMH is owned and funded by an international finance group.
- In late 2021, the owners of TRGFMH provided significant working capital funding to TRG to support the costs of re-opening resorts after being dormant during the pandemic. They - in effect - prepaid the Beach Resort Management fees for many hundreds of fractional owners to avoid them falling into breach of contract and to ensure that these interests were protected they were appointed as Members of all of the LBG Ownership Companies. TRG is extremely grateful for their support, and we believe Owners should be too. Without their support recovery of the Resorts from the pandemic would have been much harder.
- TRGFMH and their funders are NOT entitled to any income from the fractional property rental and all costs and repayment of their finance is covered by TRG directly from its own resources.
- TRG did NOT appoint TRGFMH as Director of the LBG Companies, contrary to anything you may have read.
We appreciate that this may be unsettling and confusing. Although this situation is not one that TRG is directly involved in we have one piece of guidance for you:
We recommend that unless and until you have absolute clarity about your obligations, do not make any payment to FPSL, FPS Corporate Services or TRG Founder Memberships Holdings Limited unless you are certain you have a contractual obligation to do so. If anyone asks you for any payment, always request a copy of the agreement or contract they believe you have made with them first regardless of what we or anyone else tells you. Only make a payment that you have clearly agreed to and have a clear set of terms and conditions that you understand. If in doubt, seek qualified professional advice.
Do feel free to send copies of correspondence or questions directly to us here at Sua Casa. Although we may not be qualified to provide binding advice to you, we will do our best to help you understand any requests you receive or answer any questions you have.