Promised Returns vs Reality – Waiting for Exit Strategy!
My husband and I invested in a 10% fractional share in a 3-bedroom villa at The Luc Bali after being advised during the sales process that the expected annual return would be around 8–15%.
To make this investment we even set up a managed super fund, which involved significant time, administration and costs so we could use our superannuation.
After the first year, the actual return was less than 2%, which did not even cover the initial costs we incurred.
At the beginning of this year we contacted the company requesting assistance to sell our share and exit the investment, however since then we have not been given clear guidance on how the share can be sold or what the exit process is.
The communication was excellent while the investment was being sold to us, but once we asked to exit, the clarity and responsiveness have been very disappointing.
We hope the company will provide a clear exit strategy and support to sell our share. If this is resolved and we are able to recover our funds, we will update this review accordingly so other investors are aware of the outcome.
Reply from Geonet Properties
Dear Nivin,
Thank you for sharing your experience and for your patience in allowing us to address your queries.
Following your enquiry, our team has been in direct contact with you via email and has facilitated a connection with the property management to discuss your resale intent. The extended response time was due to the coordination required with the property management and developer to ensure any guidance provided was accurate. We acknowledge the delay and have taken that feedback on board.
The project is structured as a long-term investment with a 26-year operational horizon, and the property has only been operational for a short period. As is standard with newly launched hospitality assets, there is an initial stabilisation phase during which occupancy, pricing, and market positioning are established. Early-stage returns during this period are common across the sector and are not reflective of the asset's long-term income trajectory. Any projections shared during the investment process would have been modelled on the asset's performance over its full operational lifecycle, not on the initial period of operation.
Early-phase exits in assets of this nature are generally uncommon, as they may not reflect the investment's underlying long-term potential. We are pleased you are now in direct contact with the property management and trust they are best positioned to guide you through the provisions available to you.
We value your feedback, and our investor relations team remains available for any further queries within our purview.
Warm regards,
Investor Relations Team