Landal Greenparks Holiday Lodge investment Review - Is it a Scam?

Review of Landal Greenparks Lodge Investments

There was a recent query about Landal Greenparks lodge investment and asking if it was a scam. Some very good feedback was provided which would be useful to summarise to help anyone considering putting money into this investment in park lodges. They are claiming to be FCA regulated but it's important to make sure what the FCA regulated business actually is. London Capital & Finance were FCA regulated but not for issuing bonds and used that to give a veneer of respectability. That's not to say that LANDAL BELVEDERE DEVELOPMENTS LTD are doing the same but the FCA approval isn't anything to do with lodge investment.

Update from further info it appears there are a number of different entities offering different things to investors for the same lodge park in Scotland. As well as the one mentioned for investment in lodges directly another more established company is offering bonds for what appears to be the same site. This company is Belvedere Leisure Resorts plc and both the company and their bonds are listed on the stock exchange. The investment selling lodges directly to investors is not part of Belvedere Leisure Resorts plc.

If you are looking to invest in a lodge make sure you do your due diligence and that you actually own it.

The terms that were being promoted were:

Invest £104,950 in a lodge in a new development in Scotland.

• Guaranteed income of £8,396 per annum, paid quarterly (including all mgt. fees, so that is 8% NET yield) = total £41,980 over 5 years
• Compulsory buy-back after 5 years, with a guaranteed price of £104,950 (purchase price) plus 10% uplift = £115,445

The company behind it LANDAL BELVEDERE DEVELOPMENTS LTD  was only registered in May 2020 with £300 share capital and has yet to file accounts. The other company Belvedere Resorts Ltd was only formed in January 2021. How likely is it that a company valued at £300 will be able to pay your £100,000 money back? 

The sole director and owner of both companies is Andrew Anderson of Leigh on Sea, Essex who has also been owner and director of Logan Luxury & Investment Properties Ltd which has gone bust owing investors thousands of pounds as it is in administration.

Any guarantee is only as good as the company making it. If the company goes bust then your guarantee is worthless as previous investors have found out.

The buy back value is crazy! A holiday lodge that increases in value? Holiday lodges always decrease in value as they wear out over their lifetime and need replacement as they're temporary buildings used by multiple holiday visitors every month.  A lodge isn't a bricks and mortar building, it's just a big shed.

You can't enforce a contract if the other side has gone bust and administrators are picking over the remains. Even if you had a specific lodge assigned to you (not automatically guaranteed as investors in BTL Cars found out ) you still have a lodge that you can't access as it's on a site owned by someone else. Similar situation with airport parking and storage pods. You may own something but if you can't access it's useless but even worse the site can charge fees and you're not able to get out of it so a double whammy.

As with any unregulated high risk investment made loaning money to a brand new company if you are prepared to lose all your money and assume that outcome then if you don't then it's a bonus. 

The FCA approval is not for the company that is taking your money so has no relevance