(It is important to note that NEX Advisory Group inc. has no affiliation with the Shire Victims Group Committee nor with our legal counsel at BLG LLP)
Recently, many Bearspaw investors were sent a letter of interest regarding the Bearspaw property from NEX Advisory Group Inc (herein called N.A.G). A copy of the NEX letter of interest in posted under “Document Links” and “NEX Advisory Group Letter to Bearspaw investors”).
It is our understanding that N.A.G. was originally hired by Shire International Real Estate Investments as a consultant for advice in restructuring the company. Furthermore, we understand that Paula Enriquez and Karen Shadlock are former sales representatives and/or employees of Shire International.
Based on what they have outlined in their recent letter to former Shire investors of Bearspaw, it would appear that they have formed a new company seeking to purchase the Bearspaw land out of receivership. From our review of NEX, the new company is exactly that; a NEW company and “re-purchasing” the Bearspaw lands is essentially a new purchase of the land and a new investment. It is also our understanding that any investments a bond-holder may have had in the prior “Bearspaw at 144th” company shall be dealt with through the receivership proceedings.
The estimated mortgages on the property according to the Ernst & Young report are $9 million dollars and the estimated current fair market value is approximately $6 million (based on recent market reviews and that the land is being sold in receivership). It is unknown how much any bid for the land by the new company would be.
As this project and lands have been of contention, we feel it wise for investors to carefully consider whether re-investing in this project meets their current investment goals and clearly it is in our opinion that this is NOT a prudent way to recoup any losses in the original Bearspaw land.
It is expected that eventual liquidation of the Bearspaw property by the receiver will ONLY pay out the current mortgages (at best) and we would not expect there would be any remaining/surplus monies to be returned to investors through the sale. Therefore, any “repurchase” of the lands (for what is debatably MORE than fair market value) would NOT in our opinion, be considered a prudent re-investment to recoup your losses with Shire.
