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Johannesburg – Bonatla Property Holdings [JSE:BNT] still believes it has a “done deal” to acquire the properties of syndication group Sharemax following claims by a Cape-based property developer that it had beaten the listed group to the punch.
“We’re still in there, ours is still a valid offer,” a Bonatla executive told Fin24.com on Thursday. “According to the e-mails we’ve received from Sharemax it sounded like a done deal as far as we were concerned.”
However, he also mentioned that Sharemax failed to provide the details it needed to do a due diligence, and had to “figure it out” without help from the syndication group.
Property developer Realcor on Wednesday announced it had signed an agreement with Sharemax to acquire its business and aimed to make a cash-and-share offer to shareholders in the syndications.
Realcor is a R1bn Cape-based developer which mainly focuses on the development of guest houses, but was also responsible for the Marsh Rose Mall in Grabouw.
“We’ve signed an agreement with Sharemax that we want to buy out its properties,” said Realcor managing director Deonette De Ridder. “But we first signed a contract with them that we will buy out the property management contracts and development rights – we want to sort out the neglected properties first.”
What separates Realcor’s bid from the other ten or so offers for Sharemax assets lying with the Reserve Bank, is its interest in The Villa and Zambezi Mall syndications.
The Villa shopping mall in Pretoria will cost another R1bn to finish, over and above the R1.65bn already invested. The developers of The Villa and Zambezi Mall, Capicol, are owed R100m and have consequently not transferred the property rights to Sharemax.
De Ridder confirmed that a separate agreement will have to be made with Capicol, but couldn’t confirm what this would entail.
“We think that we can get the money from private investors and banks and complete the centre,” said De Ridder.
Sharemax has been selling shares in syndicates for 11 years, focusing on small shopping centres.
The South African Reserve Bank (Sarb) last week directed Sharemax and its 34 syndication companies to repay funds allegedly collected illegally from investors.
“We’re doing this at the prompting of our clients – many of whom have invested in it (Sharemax),” said De Ridder. “We think this is worth our while and will keep the vultures away.”
- Fin24.com
“We’re still in there, ours is still a valid offer,” a Bonatla executive told Fin24.com on Thursday. “According to the e-mails we’ve received from Sharemax it sounded like a done deal as far as we were concerned.”
However, he also mentioned that Sharemax failed to provide the details it needed to do a due diligence, and had to “figure it out” without help from the syndication group.
Property developer Realcor on Wednesday announced it had signed an agreement with Sharemax to acquire its business and aimed to make a cash-and-share offer to shareholders in the syndications.
Realcor is a R1bn Cape-based developer which mainly focuses on the development of guest houses, but was also responsible for the Marsh Rose Mall in Grabouw.
“We’ve signed an agreement with Sharemax that we want to buy out its properties,” said Realcor managing director Deonette De Ridder. “But we first signed a contract with them that we will buy out the property management contracts and development rights – we want to sort out the neglected properties first.”
What separates Realcor’s bid from the other ten or so offers for Sharemax assets lying with the Reserve Bank, is its interest in The Villa and Zambezi Mall syndications.
The Villa shopping mall in Pretoria will cost another R1bn to finish, over and above the R1.65bn already invested. The developers of The Villa and Zambezi Mall, Capicol, are owed R100m and have consequently not transferred the property rights to Sharemax.
De Ridder confirmed that a separate agreement will have to be made with Capicol, but couldn’t confirm what this would entail.
“We think that we can get the money from private investors and banks and complete the centre,” said De Ridder.
Sharemax has been selling shares in syndicates for 11 years, focusing on small shopping centres.
The South African Reserve Bank (Sarb) last week directed Sharemax and its 34 syndication companies to repay funds allegedly collected illegally from investors.
“We’re doing this at the prompting of our clients – many of whom have invested in it (Sharemax),” said De Ridder. “We think this is worth our while and will keep the vultures away.”
- Fin24.com
