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Johannesburg - A prestigious property development involving big names has been hit by the slumping market.
The Highland Gate golf and trout-fishing estate in the popular weekend destination of Dullstroom in Mpumalanga was put into provisional liquidation at the beginning of August.
The estate was to have been developed by Highlands Gate Developments, with funding provided by Investec Bank and Pam Golding Properties (PGP) initially marketing it. The 18-hole golf course was designed by Ernie Els.
This is not the first development that has hit the wall as a result of the downturn in the residential market. But it is the biggest to date - although more than half of its stands have been sold since the launch of the estate 2004.
Enver Motala, chairperson of the SBT trust and one of the liquidators, says that a rescue mission has been set in motion for the project, which entails finding a suitable buyer to take it over and complete it.
Estate manager Bryce Clarence says the provisional liquidation follows the petering out of sales in the past year. "Investec wanted to withdraw and proposed that another funder be sought, after which the development was provisionally liquidated."
Head of Investec Private Bank SA Wessel Oosthuizen says the bank hopes it can limit its losses significantly if another developer is found to proceed with the project.
Clarence points out that there has recently been strong interest from prospective buyers, some from Dubai. "There are currently two serious buyers, one of whom has made an offer." He says the offer has been accepted in principle but the buyer still needs to produce guarantees.
The more than 700ha development is at an advanced stage and all the necessary infrastructure is in place. It comprises 455 stands, 267 of which have been sold and handed over at prices ranging between R700 000 and R1m. Thirteen holes of the 18-hole golf course are complete, as well as the gatehouse and the service buildings. Seven houses are also finished, two are under construction, and another 40 envisaged.
- Sake24