Thona Bay development.

Hi sportscasual, welcome on Expat-blog!

I hope other members will be able to give you info about this area.

All the best,
Christine

Batticaloa's well and truly flooded at present and the proposed airport with international flights is at least an year away from being operational. It's also a fair distance from Batticaloa.

Good info thks. Interesting that as the developer has firm clauses that penalties will be paid to investors if they don't meet deadlines. wonder if their is an 'act of god clause' that negates that.

When you say it's a fair distance..what is that? 30min commute? or longer? do you know if their is a rail link intended?

Unless there's a new airport in Batti which they built without my knowing, the only airport of international standard being built in close proximity is the one in a place called Mattala. On a good day it's a 4 hour commute to Batticaloa. However they could send you in an air taxi/ sea plane for the hop from arrival to Batticaloa. Lol I doubt they made provisions for such clauses. Either way all dev elopment in the east has come to a standstill. It's going to set their delivery dates back at least six months. And that's only if the rain quits and mother nature says enough. Saw the website, they seem legit. Get some legal advice before putting in your money. There are good attorneys in Colombo who do spade work. Saves you a lot of grief. That said, the east of Sri Lanka can be compared to the california gold rush:) lots of prospectors, lots of free agents, plenty opportunists and very little regulation.Selling a dream.Good luck.

PS- a rail link exists from Colombo to Batticaloa.

sportscasual wrote:

I am looking at investing in a property with a company called Karooda properties. They are developing a large stretch of beach front land north of Batticaloa called Thona Bay.

I am trying to find out as much about this area as possible before i make my mind up to commit. Does anyone know anything about this area? the beaches? towns?  Is the international airport they have planned near completion?..(apparantly a few flights run according to one source of info.

Does anyone know of anyone investing in this? I only have the developers sales pitch to go on and was wondering if anyone could broaden my knowledge. (wouldn't be too hard at this stage)

Thanks.

hi i am buying a property with karooda property and every thing has been fine so far and are helpful so far i wat to know more about the area ,i do know a air bus to thona bay is goin to be built,along with a new train track 200 metres away rom thonabay pls get back to me .

hello, as an advice, i would not invest in that area because it is missing too much facilities, i am going to buy a property in the south coast of sri lanka beaches are very nice(my favourite ones), and quiet, tourism already developped, matara and tangalle are big cities with enough facilities near that is important to carry on the project. I would also advice to try to buy by yourself(ads...) because you can save upto 10 per cent, realestates and brokers in sri lanka charge from both owner and buyer. good luck

I attended recent property show where Karooda promoted the project. Also listenned general Sri Lanka promotional presentation from the government representative (who also appears as the owner of Thona Bay land and Thona Bay Pvt Ltd developer company).

The brochures and talk all sound exciting. I am interested in Sri Lanka (visited last year) and reasonably comfortable with some investment risk associated with the properties there.

But I also want to see formal documents showing claimed government consessions allocated to Eastern province and Thona Bay developer:
- Batticaloa development plan with special zone benefits and borders (whether Thona Bay project is located within claimed special zone),
- no income tax on rents for 15 years for Thona Bay unit purchasers (I assume this should be written on stone and confirmed by official tax authority letter),
- money expatriation guarantee (formal BOI letter is expected for the banks),
- no 100% foreigner surcharge (pls show me BOI/tax authority letter) etc.

None requested formal document are available, as apparently delayed by various authorities and cabinets... Hmmmm

The land title appears evident (I couldn't read more from produced photocopy).
But no approved building permission and specific project plan - again those are still in the government departments, will be avail next week.... hmmmmm

They promise to start building work on 1st May. Great, but no sub-contractors have been signed up as yet (I asked for the construction companies and their previous projects). Hmmmmm

Asking about weather, moonsoons and expected occupancy rate of the rented appartments - they made ROI calculations based on 80% occupancy. Hmmmmmmmm, I doubt that it will achieve brave 50%, as tourist infrastructure of the area is still pretty much non-existing and moonsoon season will make its solid impact on guest arrivals. 

So I am holding on till I see more credible response on above.
At this point it appears either very optimistic (while I try to understand their challenges with government paperwork and pioneering in the eastern province) or rather quite naive (if not say fishy as yet).

Further thoughts would be welcome.

it is worth while to give a thought to axelf's comment, area is with lesser facilities compare to the south, therefore less tourist attraction at present, SGhawker analyse it much more better way I should say

it is true there are more facilities about taxes problem in east coast, if not who will invest in such conditions?
What are the insurance or garanties about the placement, only promises?see all the projects not completed for exemple the highway from colombo to matara which has never been completed?
i am sorry to say that this project is old fashion (years 70)with concrete everywhere, it doesn't match with the new way to think tourism (more close to nature)
my conclusion is that it is better to invest in a project that you can control yourself in a place you can enjoy as well

I have had the same nagging thoughts about this project also and that is why i'd rather sit back and see how they go over the next year or so. The other thing that they don't disclose is how well insured the place is and whom is insuring the site. The recent tsunami in Japan and the 2004 tsunami are reminders of how fragile these beach side resorts are.

I am pro Sri Lanka though and going to visit this year. i am seeing if i can get over to the east coast to chk out this area too.

Hi

I attended the sales exhibition of the Thonabay property in Singapore and to be honest, it was convincing enough to spend a bit more time and worth checking the next level of details. Even though there was a usual overdose of sales pitch, one can't rule out the opportunity there especially in the troubled market conditions everywhere.
Has the construction project work been started? Any investor get to see all the documents as promised such as showing claimed government consessions allocated to Eastern province and Thona Bay developer, no income tax on rents for 15 years for Thona Bay unit purchasers,  money expatriation guarantee, no 100% foreigner surcharge.
I visited Colombo 3 times so far and going there again in the yearend to gain first hand understanding. Any suggestions for checking any more important details to take an investment decision on this project? Your views are welcome.

Hi all,

I have been researching this hotel resort as well, as I think the Sri lanka has potential to be a great holiday destination. If everything is valid and legit then it seems a very good investment.

I have relayed some of the question SGhawker originally asked about Thona Bay to see if there has been traction.

Here are the responses. It would be great if anyone can comment on some of the companies and people involved in the project.

- They are looking at getting LAN Management Development Service involved on the project management side. They are meant to be the biggest project management and engineering company in Sri Lanka. Still early negotiation phase though
Their website http://www.lanmds.com/projects-commerci … dings.html

- For construction they are in negotiation with Sanken, BAM & Marga. However they intend to go to tender by March. They are hoping to attracte a Chinese developer to carry out the works throughout the development.

- The conceptual design was undertaken by Lewis and Hickey in London and since then been passed on to a local Sri Lankan company called Evoke.

- Their BOI reference to verify some of the tax benefits is  BOI is EC/4/1276/11.

- The company Thona Bay (Pvt) is owned by the land owner Arun Tambimutta. His meant to be a Special Advisor to Arun Tambimutta.

I hope this information has been useful to you all. It would be great if you can share any new information you might have on the development or about the information I have provided.

Many thanks and look forward to the responses.

Thanks

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What you referring here is a project to be started in Kalkudah area.

It would be a good destination for a hotel but not for a condo or apartment as area lacks many standard features as in Capital Colombo.

Said air port too far away from there and about to complete in November.

Thanks,
CJ

I am an early invester in Thono Bay,Im am currently based in London UK but plan to live in Sri Lanka as drom Mid 2013   
project is late in commencing but I am told by the chairman of Karooda based n Colombo that the project is on target for completion still end of 2013   

A proposal for those early investors is expected according to the Chairman before 29th June 2012 we will see 

Anybody who has already invested in Thono Bay with any further news contact me on my email ronecollins@hotmail.co.uk
I am told we are in for some exciting new pre 29th June 2012

Ronald, any exiting news there? please let us know....

Will let you know when I have more news about Thono Bay development digging foundation not sure how deep they will have to go because of sand base 
bye for now

I would advise anybody thinking of investing in any property in Sri Lanka to VISIT and look at the place!

[Moderated: Please register into Sri Lanka Business directory]

Best of luck!

I invested in the Thona Bay development through Karooda Properties. Seemingly the project is frozen pending the outcome of investigations into financial irregularities. Does anyone have any further information about what is happening?

companycheck.co.uk/company/07037334

i am also an investor - did you manage to get any updated information?

Hi axelf, How are things going on.. did u find a plase in down south?
Lashanga

just had a response come up on the exblog sit heading Thono Bay 22nd April 2013 
refers to a massage about Lashanga could not make the connection between this place and Thono Bay
please explain

RONALDCOLLINS wrote:

just had a response come up on the exblog sit heading Thono Bay 22nd April 2013 
refers to a massage about Lashanga could not make the connection between this place and Thono Bay
please explain

Dear Ronald, I reply to the post sent by  axelf  on 2011-03-24 10:53:26, as i agrees to comment. Could not rely on potentiols, like east Thono Bay. they might work out or may be not.

All of the investors are now in contact with each other. Around 1million UK pounds has already been invested. It appears that nothing has been done to develop the site. Arun Tambimuttu has not responded to any of the investors questions. He is unresponsive and seems to be deliberately avoiding all contact. There is a serious trust issue here. Lawyers are working for the investor group and making investigations.

hmmmmmmm, sorry to hear such news. Has Karooda UK management disappeared also?
It appears to be the end of flashy Thona Bay story...

Initial doubts have turned out to unfortunate true - it is a scam.
Good luck to people who invested there, hope some money could be recovered...

Don't touch the Karroda Thono Bay project invester are having big problems with getting any response from Director
Arun Timbamutti who appears be avoiding communicating with investors,Mr AT has lined his pocket BIG TIME
Mr Timbammuti is more interested in extending his political standing on the East Coast province and talking to
Sri Lankan Military Generals about the history of Tamils.

Hi, i'm also an investor in the Thona Bay project and seem to be having the same problem as everyone else.....Karooda (most importantly Arun) have disappeared and totally uncontactable.  The last update I received was Nov 2012 apologising for the lack of communication and portioning the blame of delays to unsuccessful management, everything was supposed to get back underway by Mar 2013, I've heard nothing!  The UK operation was closed some time ago, everythig moved to Colombo.

What are other investors planning to do, I would fully support the efforts to work with some legal counsel for a resolution.  Mr Timbamutti has political aspirations, this is not the sort of publicity he would want, I hope that can work in our favour.

May I suggest that all Investors contact Richard Stewart in London email:richard.stewart@mindbench
Richard is one of 15 investors identified so far who have paid large deposits to Thono Bay Project/Karooda.
Richard is heading up investors who have paid fund to Thono Bay through legal action in Sri Lanka,Messrs C Mathews 172 Hulfsdorp Street Colombo 12 Tel No 11 94 3135440 Sumodo@cmathews.com is on the case.they have been recommend by the UK Foreign and Commonwealth offcie to handle the case     
Absolutely no response has been received from Diretor
Arun Tambimuttu and the progress of the  Thono Bay
May I strongly suggest if you have invested in Thono Bay,
you contact either party mentioned to get the latests legal updates,important to know I do not think that any info will not be passed on unless you have contributed to a share of the lawyer expenses (fees) already paid by many investors,
I should be pointed out for some reason I cannot explain that some investors have not joined the recovery group those people have not been provided with legal progress reports 
the sum paid to lawyer at this stage is not large   
suggest you contact Richard Stewart if you wish to join group Best of Luck everybody

Thanks, the email address for Richard Stewart does not seem to work, I will send him a message via this site.

It seems everyone of you eventually became escape goats for a scammer. As far as I know, government or the BOI haven't approved any of the projects in this nature. Recalling the memories, this party seized the opportunity by showing the second port, air port and some road side developments to strip off the innocent investors like you guys.

If you are after an investment opportunity, there are many projects. To find an opportunity, you need some assistance from someone living in Sri Lanka, knows the geography etc.

Hello all, my actual email address is Richard@mindbench.co.uk
If you have been trying to reach me, this should actually be my address

2 years on, nothing has been done on the site. Any trust that the investors placed in the development and Arun was totally misplaced. The evidence suggests it was a deliberate scam and land fraud. Investors take note and beware. The investors are united in trying to get their money back and are working with the authorities of SL to achieve this.

Richie how it going with legal claims? While Arun ignores any contact with ordinary investors, he is surely active in SL circles (unlike Karooda scumbag which was clearly false frontface company from day 1) and thus Arun must be easily contacted by the lawyers... Hope most money can be recovered, good luck and please keep up updated. Thanks.

So a meeting was arranged between Arun Tambimuttu and the Chair of the Board of Investment (BOI) in February 2014. The project had been a BOI approved project and the Chair was helping us to get a resolution. The meting happened and Arun was instructed that all of the investors wanted refunds. Arun agreed in person (with the lawyers and the Chair present to make the refunds). Letters were duly sent but there was no response. Several months have gone past since the meeting and the agreement and Arun has been completely evasive and uncooperative.

This is a very serious matter both in this instance but also generally for Sri Lanka. If the country is going to convince other countries that it is a safe place for Foreign Direct Investment, then much more needs to be done in terms of ensuring that fraud is prevented and that organisations such as the BOI have the authority to act where fraud has taken place.

Thanks Richie. Glad to hear that BOI was involved and seem cooperative, at least. But with no progress and payments, is there no ground for a criminal case? Surely there is the case of money disappeared 2 years ago while nothing has been built so far.. Ok better not to explore such options on public forum (they read it). Good luck and pls update us how it goes.

Relevant actions are currently underway. Fraud has taken place on several levels. The land doesn't even belong to Arun and official titles etc proved to be falsified, false representations etc.