"The TRG investments relate to holiday resorts that have been built and are largely operational, with the investment manager still providing valuations.
"As with investments of this nature, we continue to monitor the situation closely [...] Following updated reviews of the issues with the different types of investment in TRG, [we] allowed customers with full ownership of units to utilise independent valuations, and customers with fractional memberships to utilise nil value for the purposes of compensation calculation."
Returns falling short
It is not the first time the Cape Verde-based property group has spelled trouble for the UK savers who invested in the assets over the past decade, some on the advice from firms that have since left the industry.
FTAdviser reported in 2018 how many investors claimed they had been promised guaranteed returns on their investments, only to be disappointed by the returns that materialised - leaving them with Sipp fees that offset the returns they did receive.
Like many hotel groups across the world The Resort Group has been impacted by the coronavirus crisis and associated lockdowns.
In a letter sent to investors in April, seen by FTAdviser, Rob Jarrett, executive chairman of TRG, warned that as of March 18 TRG could would not continue its payment of rental income to investors due to all hotel operations being suspended.
He cited so-called force majeure clauses - commonly used clauses that allow contractual obligations not to be performed due to an extraordinary event.
But investors are still expected to pay for the upkeep of the rooms, albeit at a rate of 50 per cent during the force majeure period.