Altivex 88 (Pty) Ltd

(Under Provisional Judicial Management)

Masters Ref: T7651/09

better known as:

*Milestone Place Route 21*

Holding Company:

Sign and Seal Trading 68 (Pty) Ltd

 

Documents on File:

 

1. Notice of Motion

2. Court Order

3. Provisional Certificate of Appointment

 

 

MILESTONE PLACE A & D
ALTIVEX 88 (PTY) LTD
INCOME STATEMENT as from 17/11/2009 to 28/02/2010
INCOME			EXPENSES
Vacancy factor 31,07%
Monthly rental income November 2009	16,750.25		Operational Expenses November 2009	-
			Once off Expenses November 2009	-
				-
Monthly rental income December 2009	85,046.07		Operational Expenses December 2009	-
			Once off Expenses December 2009	50,876.72
				50,876.72
Monthly rental income January 2010	102,353.26		Operational Expenses January 2010	46,861.10
			Once off Expenses January 2010	53,327.11
				100,188.21
Monthly rental income February 2010	74,147.26		Operational Expenses February 2010	100,974.64
			Once off Expenses February 2010	112,700.26
				213,674.90
	278,296.84			364,739.83

 

 

1.                 You will note that the expenses exceed the income. This was financed by loans where the provisional judicial managers received extension of powers dated 27 November 2009 as set out on page 3 of this report.

2.                  Placement of new tenants created variance in monthly income and expenditure as deposits were received and tenant specific installations were done.

3.                  Included in the expenses is an amount of R 82 001.06 and includes professional fees of forensic auditors and legal fees.

4.                  There is amount of R 499 542 owed to Bluezone Property Investments (Pty) Ltd (in liquidation) for an interlinked company loan as determined by the forensic auditors.

5.                  Bluezone Property Investments (Pty) Ltd (in liquidation) has a further claim for Rent Roll and Administration of R 205 593 against the company.

6.                  The current account is held with FNB under acc number 62071009487 and is showing a zero balance. The Nedbank account is held under account number 901-591-8446 and has a credit balance of R 22 673.82 as on the 1^st of March 2010.

7.                  The property’s vacancy factor is 31.7% as on end February 2010. New tenants are actively pursued.

8.                  The company’s liability for VAT at 30 November 2009 is estimated at R 21 643.

9.                  Total Immediate Obligations according to Forensic Auditors’ report: R 823 374.06

10.             No provisional judicial management fees have been charged or collected from the company, neither has the Master of the High Court granted any fees to be collect by the judicial managers as on date of this report.

 Forensic Auditors’ Report Findings:

The company was incorporated on 20 August 2004 as Altivex 88 (Pty.) Ltd. under reference number 2004/023567/07. The company’s registered office appears to be that of its auditor, Loubser Du Plessis Incorporated, and is given as De Waterkant Building, 10 Helderberg Street, Stellenbosch. Hennie Lamprecht is given as the sole director.

 

The company sole asset of significance Units 1 – 4 of Blocks “A & B” and “C & D” Milestone Place, Route 21 Corporate Park, Irene Extension 30 which it acquired in June 2005 at a cost of R 6 320 707.

 

The properties was valued by J.T. Seyffert in August 2006 for R 10 250 000 and formed the basis of a syndication arrangement by Bluezone at a value of R 9 679 000. Included in the syndication value, was Bluezone’s profit on the transaction (gross of commissions) of R 2 819 452.

 

The profit excluded a commission payment of R 361 546 paid to Unit 21 Sunset Hill CC. According to the Companies Register, the CC is owned by Chris Blaauw, a former employee of Blue Zone.

 

THE ADMINISTRATION OF THE COMPANY POST SYNDICATION

 

The company obtained a mortgage loan from Nedbank for R 5 000 000 in 2005. The Nedbank loan was settled by Honey & Partners on 10 June 2005 from investors’ money.

 

On 15 July 2005, the company requested a new draw of R 5 000 000, which money was deposited to the company’s FNB current account. From the company’s general ledger, it appears the amount was transferred to Hennie Lamprecht’s RMB account in July 2005. There does not seem to be any authority for this transfer although the bond was disclosed in the company’s financial statements for the year ended 28 February 2006.

 

The amount was repaid by Hennie Lamprecht on 31 August 2006. The company however received no compensation for the interest incurred on the bond over this period, which we estimate at R 538 000. The bond was subsequently cancelled.

 

There is further evidence that the Company assisted Lezmin 2329 CC to acquire Unit 5 of Milestone Place at the same time that the company purchased its property. Lezmin 2329 CC  is 100% owned by Hennie Lamprecht. 

 

The company has paid VAT to August 2009. The company has rendered an income tax return up to the 2008 tax year. There is an assessed loss for income tax purposes of           R 630 305 at 28 February 2009.

 

·        The Milestone Place property has been valued by Messrs of Valuers & Appraisers

at R 9 350 000

·        Property and administration expenses of R 205 593 have been accrued.

 

The company’s liabilities exceed its assets by R 1 129 617 and is therefore insolvent. Furthermore, the company will not be in a position to pay any interest to its Holding Company for the foreseeable future, as funds will be required by the company to meet its immediate obligations.

 

The company faces a claim from the liquidators of Bluezone Property Investments of         R 499 542 being the amount due to Bluezone on the intercompany account. The liquidators will most certainly pursue this claim.

 

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