Summer Season Trading 51 (Pty) Ltd

(Under Provisional Judicial Management)

Masters Ref: T7753/09

better known as:

*Bishops Court*

Holding Company:

Pacific Breeze Trading 136 (Pty) Ltd

 

Documents on File:

 

1. Notice of Motion

2. Court Order

3. Provisional Certificate of Appointment

 

 

BISHOPS COURT
SUMMER SEASON TRADING 51 (PTY) LTD
INCOME STATEMENT as from 17/11/2009 to 19/02/2010
INCOME			EXPENSES
Vacancy factor 0%
Monthly rental income November 2009			Operational Expenses November 2009	-
				-
Monthly rental income December 2009	441,182.60		Operational Expenses December 2009	233,917.65
				233,917.65
Monthy rental income January 2010	225,386.49		Operational Expenses January 2010	276,648.69
			Once off Expenses January 2010(Loan repayment)	10,716.60
				287,365.29
Monthly rental income February 2010	-		Operational Expenses February 2010	374,932.10
			Once off Expenses February 2010	131,967.83
			Once off Expenses - LDP Auditors (still to be paid)	798.00
				507,697.93
	666,569.09			1,028,980.87

 

1.                  There is amount of R 65 000 owed by Bluezone Property Investments (Pty) Ltd (in liquidation).

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

            of R 267 770 against the company. This claim has already been proven at the first Creditors’ Meeting.

3.                  The current account is held with FNB under acc number 62101811299 and is showing a zero balance. The Nedbank account is held under account number 901-591-7995 and has a credit balance of

             R 427 518.86 as on the 1^st of March 2010.

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

5.                  The company’s liability for VAT at 30 November 2009 is R 37 726.

6.                  The company’s arrear tax liability as at 30 November 2009 is R 115 321.

7.                  Total Immediate Obligations of the company : R 552 784.83

8.                  The company’s current monthly income amounts to approximately R 244 000 with expenses of

            R 67 000 per month.

9.                  The bond payment is R 128 830.31 per month with bond account number 30089552 held with

            Nedbank. The outstanding bond balance amount to R 7 538 290.67 as on the 5^th of February 2010.

            The bond is paid up to date.

10.             It seems from documentation found in the offices of Bluezone Property Investments (Pty) Ltd (in liquidation) that the “loan” from the holding company was subordinated in favour of Nedbank.

11.             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 24 February 2006 as Summer Season Trading 51 (Pty) Ltd. under reference number 2006/005790/07. 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 are Sections 3 -8 of the sectional title scheme known as Bishops Court, Hillcrest which it acquired in April 2006 at a cost of R 15 800 000. The property

is let on a long term lease expiring 30 September 2015 to the Special Investigating Unit. The

property was valued by J.T. Seyffert in May 2006 for R 18 600 000 and formed the basis of a syndication arrangement by Bluezone at a value of R 21 772 000.

 

The difference between the syndication value and actual cost, amounting to R 5 972 000 was explained in the Disclosure Document to Investors as follows:

 

Purchase Price (agent commission transfer costs etc)  16 615 000

Marketing Commissions and other costs                           1 525 000

Head Lease and Tenant Installation                                   1 800 000

Vacancy Fund                                                                     200 000

Bluezone Gross Profit                                                       1 632 000                                   

Total Syndication Amount                                            R 21 772 000

 

Despite the sale agreement with the seller expressly providing that no agent‘s commission was payable, a total of R 500 000 was paid by BZPI, R 200 000 to Northern Spark Trading 254 (associated with Hennie Lamprecht and Paul Scheepers) and R 300 000 to BIS Financial Services (with Peter Griffen and Ian Steel listed as “agents”)

 

THE PROPERTY SYNDICATION

 

The investment was geared to the extent of a mortgage bond by Nedbank Corporate for

R 10 000 000. The balance of the funding requirement of R 13 100 000 was intended to

be provided by a loan from the company’s holding company and ultimately by investors.

 

A lump sum payment of R 1 100 000 was made against the bond in February 2008, thus

reducing the bond to a level of R 8 672 000 in accordance with the Disclosure Document.

 

THE ADMINISTRATION OF THE COMPANY POST SYNDICATION

 

The company has rendered a VAT return to August 2009. There is a liability for VAT for the September/October 2009 period of R 37 726 (including penalties and interest of R 3 967) which remains unpaid.

 

The company has rendered an income tax return up to the 2008 tax year. There is an amount outstanding on the income tax account of R 115 321 for which the Company has received a final demand.

 

 

FINANCIAL POSITION

 

·        The Bishops Court property has been valued by Messrs of Valuers & Appraisers at

      R 20 000 000. This resulted in a write down in the carrying value of the property of

      R 1 236 998;

 

·        Unpaid property and admin expenses of R 267 700 have been accrued, and

 

 

The company’s liabilities exceed its assets by R 935 268 (based on Sonia Massyn’s valuation)

and is therefore insolvent.

 

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