Publications
Partners
Johannesburg - Realcor, one of the companies that has come to the fore as a possible white knight for Sharemax, itself has problems managing cash and cannot currently make interest payments to its investors.
And some investors whose debentures should have been repaid from July 1 have still not received their money.
But chief executive Deonette de Ridder said investors should hold on for a while. A solution was around the corner.
The reason for the cash flow problem is apparently that all available money is being used to complete the group's flagship project, the Radisson Blaauwberg Beach Hotel, so that it can begin to do business.
The management of cash became a problem because Realcor had to pay investors back some of the money initially raised because of non-compliance with the Banking Act.
She said that as soon as the hotel was completed there would be income from which to pay investors.
And the interest that could not currently be paid would be added to investors' capital. No-one would lose money, she said.
The money raised from investors had been specifically intended for building the hotel.
And, unlike in the case of Sharemax, where it would cost billions to complete the projects undertaken, De Ridder estimated that another R20m was all that was required to complete the hotel, which would be operated by the Radisson Group as a five-star hotel.
In addition, about R25m worth of debentures still had to be settled.
The uproar over Sharemax is making new investors wary of private property schemes. But, said De Ridder, there were other options.
In an exclusive interview this week she declared that Realcor was considering offers from financiers and would come to a final decision on possible loans early next month.
- Sake24
For business news in Afrikaans, go to Sake24.com.
