Investors who put millions of pounds into Brazilian property investments – hoping to profit from the “World Cup effect” – are now pinning their hopes on a legal action to reclaim some of their money.
The firm at the centre of the property investment scheme, Pantheon Realty Consultants, had a prestigious address in London and UK directors whose details were held at Companies House.
During early 2013 the firm sold plots in areas supposedly close to World Cup stadiums and likely to benefit from Brazil’s more widely rising land prices. The plots were to be developed as hotels and resorts, the salesmen promised, and should return 20pc per year.
But the land that was sold to investors for an average £10,000 per plot has turned out to be almost worthless and unlikely ever to be developed.
Imagine that there was land that might be developed as a result of the “World Cup effect”.
Given that the World Cup is in 2014, by 2013 it would already be being developed, wouldn’t it?