Publications
Partners
Johannesburg - More than 4 000 home buyers, some of whom are already paying off bonds, are now homeless owing to a massive property scandal involving millions.
The buyers are waiting in vain for the completion of their houses in new residential developments while the developer blithely continues to announce one new development after another.
The developer is Donovan Atkins, who trades in the name of Theos Projects – and a whole series of subsidiary businesses.
Some buyers have already taken transfer of their properties and are paying off bonds granted by South Africa’s big four banks. Yet there is no sign of houses being built or buyers' homes having been completed.
At two of the projects where construction was started, it came to a halt because development company Theos Projects had not paid the contractor.
Not all funds granted for the construction of houses have been used for the building projects.
Sake24 is aware of at least 10 developments in the country where more than 4 000 properties were marketed and sold by Theos Projects and some of its subsidiaries.
The transactions involved buyers buying a stand, together with a construction package for building a house. Stands began at R265 000 and building prices at R249 900.
Meanwhile, only 42 houses have been completed.
The developments include Heritage Manor (Krugersdorp), Sagewood Manor (Midrand), Misty Hills (Bronkhorstspruit), Heatherview (Pretoria North), Sekelbos (Brits), Eastwood (Springs), Nonyana (Vaal River) and Bridgemead (Port Elizabeth).
An analysis of the company shows that throughout South Africa, Theos Projects has 21 ventures with a total value of R8.8bn, and future projects valued at R22bn for 2008 to 2010.
One of the company’s subsidiaries, Red Coral Investments 13, has already been liquidated and a second, Red Coral Investments 37, has been placed in provisional liquidation.
- Sake24
