Tropical Paradise Trading 335 (Pty) Ltd

(Under Provisional Judicial Management)

Masters Ref: T7646/09

better known as:

*Austin Crossing*

Holding Company:

Southern Palace Investments 337 (Pty) Ltd

 

Documents on File:

 

1. Notice of Motion

2. Court Order

3. Provisional Certificate of Appointment

 

AUSTIN CROSSINGS
TROPICAL PARADISE TRADING 335 (PTY) LTD
INCOME STATEMENT as from 17/11/2009 to 19/02/2010
INCOME			EXPENSES
Monthly rental income November 2009	41,059.72		Operational Expenses November 2009	-
			Once off Expenses November 2009	-
				-
Monthly rental income December 2009	56,959.44		Operational Expenses December 2009	42,152.34
			Once off Expenses December 2009	-
				42,152.34
Monthly rental income January 2010	60,143.86		Operational Expenses January 2010	3,714.13
			Once off Expenses January 2010	-
				3,714.13
Monthly rental income February 2010	24,974.24		Operational Expenses February 2010	6,750.13
			Once off Expenses February 2010	49,089.80
			Once off Expenses - LDP Auditors (still to be paid)	1,212.69
			Once off Expenses - Legal fees (still to be paid)	7,159.38
				64,212.00
	183,137.26			110,078.47

 

 

1.                  There is amount of R 577 474 owed by Bluezone Property Investments (Pty) Ltd (in liquidation)

            as an intercompany loan identified by the forensic auditors.

2.                  Bluezone Property Investments (Pty) Ltd (in liquidation) has a claim for Rent Roll and Administration

            of R 239 351 against the company.

3.                  The current account is held with FNB under acc number 6208-2492-952 and is showing a zero

            balance. The Nedbank account is held under account number 901-591-8496 and has a credit balance

            of R 87 857.25 as on the 1^st of March 2010.

4.                  The property’s vacancy factor is 0% as on end February 2010.

5.                  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

6.                  Total Immediate Obligations of the company : R 353 061.61

7.                  The loan form Liberty lane 98 (Pty) Ltd amount to R 50 000 and needs to be settled. It is NOT

           included in above figure. The forensic auditors determined and investigated the loan, and is therefore

           not yet a proven and submitted claim by the judicial managers.

 

Forensic Auditors’ Report Findings

 

The company was incorporated on 17 May 2005 as Tropical Paradise Trading 335 (Pty) Ltd. under reference number 2005/015145/07. 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 purchased two properties in 2006 - The Austin Crossing Centre for R 5 350 000 and the Bevpak Property for R 13 527 046. The Bevpak property was valued by J.T. Seyffert in September 2006 for R 18 500 000. The forensic auditor has not been able to locate a similar valuation for the Austin Crossing Property. These two properties formed the basis of a syndication arrangement by Bluezone at a value of

R 25 900 000.

 

THE PROPERTY SYNDICATION

 

The “vacancy fund” of R 500 000 and a “maintenance fund” of R 400 000 never existed.

 

The Bevpak property was sold to Calshelf Investments 145 (Pty) Ltd. in June 2008 for R 18 900 000.

Honey & Partners were to distribute the proceeds as a part repayment of shareholder funds. It does not appear that Honey & Partners has accounted to the company for the sale of the Bevpak property. A commission of R 200 000 was paid to Northern Spark Trading 254 (Pty) Ltd on the sale to Calshelf 145,

in which Paul Scheepers and Hennie Lamprecht have an interest.

 

THE ADMINISTRATION OF THE COMPANY POST SYNDICATION

 

Generally, the property was administered in accordance with the disclosure document issued to Investors, except for the following. On 30 June 2008, Bluezone withdrew an amount of R 500 000 from the company’s bank account, and a further R 45 000 on 8 January 2009. The first withdrawal was funded from a VAT refund of R 623 216 and the second from operating income. These amounts are unlikely to be recovered

from the Bluezone insolvent estate.

 

The company has rendered an income tax return up to the 2008 tax year.

 

FINANCIAL POSITION

 

·        The Austin Crossing property has been valued by Messrs of Valuers & Appraisers at R 5 600 000. This is in line with the carrying cost of the property in the books of the company;

 

·        Provision has been made for a rent collection and management fee payable to Bluezone on gross rentals, amounting to R 239 351; and

 

The company’s liabilities exceed its assets by R 1 715 215 (based on Messrs Valuers & Appraisers’ valuation) and is therefore insolvent. Furthermore, the company will not be in a position to pay any interest

as funds will be required by the company to meet its immediate obligations.

 

The company also faces a claim from Liberty Lane Trading 98 (Pty) Ltd (the holding company of the Flextronics syndication) for R 50 000 advanced on the 6^th of April 2009.

 

CONCLUSION

 

Despite the immediate claims against the company, Austin Crossing is fully let and well tenanted. The

company should be able to trade out of its difficulties, given time.

 

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