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SA developers still hopeful

Feb 24 2010 10:23 Elma Kloppers

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Johannesburg - Most of the property developers who became involved in the controversial Katota property scheme still appear to be prepared to give this company the benefit of the doubt.

On Tuesday some of the developers indicated to Sake24 that they still had their hopes set on Katota's most recent commitment to get finance in Dubai.

This is despite the fact that they had been kept waiting for the past 18 months after Joseph Eshun, a Ghanaian businessman, offered to buy their developments for several millions.

The Katota project consists of plans to buy the developers' land and developments, and then to appoint developers to manage them on Katota's behalf.

The original plan was to buy more than 400 developments to the value of R55bn and complete some 78 500 residential units with a view to the coming World Cup soccer tournament. The tournament is now just around the corner and not a single development has yet been bought or completed.

Katota's latest assurance is that it has appointed the Signature Group in Dubai to obtain funding by means of debentures. These debentures will be announced in two weeks' time.

Previously there was talk of getting the money in Mauritius.

Only 78 of the original 400 projects are still on Katota's radar screen. These developments are coincidently those for which the developers have paid Katota R110 000 per development.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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