Tropical Paradise 324 (Pty) Ltd

(Under Provisional Judicial Management)

Masters Ref: T7644/09

better known as:

*Chambers Ground Floor*

Holding Company:

Pacific Breeze Trading 120 (Pty) Ltd

 

Documents on File:

 

1. Notice of Motion

2. Court Order

3. Provisional Certificate of Appointment

 

CHAMBERS GROUND FLOOR BLOCK E
TROPICAL PARADISE TRADING 324
INCOME STATEMENT as from 17/11/2009 to 19/02/2010
INCOME			EXPENSES
Vacancy factor 12,88%
Monthly rental income November 2009	39,787.04		Operational Expenses November 2009	-
			Once off Expenses November 2009	-
				-
Monthly rental income December 2009	155,592.79		Operational Expenses December 2009	14,944.18
			Once off Expenses December 2009	-
				14,944.18
Monthly rental income January 2010	39,787.04		Operational Expenses January 2010	98,053.02
			Once off Expenses January 2010	-
				98,053.02
Monthly rental income February 2010	-		Operational Expenses February 2010	34,519.33
			Once off Expenses February 2010	124,108.29
			Once off Expenses - LDP Auditors (still to be paid)	26,995.20
				158,627.62
	235,166.87			271,624.82

 

 

1.                  There is amount of R 46 113 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 68 939 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 62084985252 and is showing a zero balance. The Nedbank account is held under account number 901-591-8200 and has a credit balance of

            R 45 198.12 as on the 1^st of March 2010.

4.                  The property’s vacancy factor is 12.88% as on end February 2010.

5.                  The company’s liability for VAT at 30 November 2009 is estimated at R 31 215.

6.                  Total Immediate Obligations of the company : R 224 594.29

7.                  The company’s current monthly income amounts to approximately R 115 000 pm with expenses of

            R 61 000 per month, including a special levy of R 26 247.37 per month till the end of February 2010.

            The monthly expenses of R 61 000 EXCLUDES the bond payment of R 67 919.08.

8.                  The bond payment is R 67 919.08 per month with bond account number 30082667 held with Nedbank. The outstanding bond balance is R 3 748 838.15 as on the 5^th of February 2010.  The bond is paid

            up to date.

9.                  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.

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 16 May 2005 as Tropical Paradise Trading 324 (Pty.) Ltd.

under reference number 2005/014931/07. 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 is two sectional title units of an office complex known as

Tyger Valley Chambers 2, Bellville, Cape Town which it acquired in February 2006 at a cost of

R 9 550 000. The property was valued by J.T. Seyffert in December 2007 for R 10 800 000 and formed the basis of a syndication arrangement by Bluezone at a value of R 12 522 000. The difference between the syndication value and actual cost, amounting to R 2 972 000 represented Bluezone’s profit on the syndication, gross of transfer costs and commissions paid.

 

Further, on syndication of the property, provision was made for a “revamp fund” of R 300 000

and a “vacancy fund” of R 400 000.  

 

THE PROPERTY SYNDICATION

 

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

R 5 730 000. The balance of the funding requirement of R 6 792 000 was intended to be provided

by a loan from the company’s holding company and ultimately by investors. An amount of

R 7 513 000 was eventually raised from investors and the mortgage loan reduced to approximately

R 5 000 000.

 

THE ADMINISTRATION OF THE COMPANY POST SYNDICATION

 

On 1 January 2010, Curamed Cape vacated its offices, resulting in a vacancy of 110 sq m. The resultant drop in income is likely to put some strain on cash flow going forward.

 

The company has rendered a VAT return to August 2009. There is a liability for VAT for the September/October 2009 period of R 31 215 (including penalties and interest of R 3 281) 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 332.

 

 

FINANCIAL POSITION

 

·        The Chambers Ground Floor property has been valued by Messrs of Valuers & Appraisers at R 8 500 000. This resulted in a write down in the carrying value of the property of

      R 2 300 000;

·        Rent collection and management fee is claimed by Bluezone on gross rentals, amounting to

      R 68 939.

 

 

The company’s liabilities exceed its assets by R 2 579 252 (based on Messrs Valuers & Appraisers’ valuation) and is therefore insolvent.

 

CONCLUSION

 

The company has been managed in accordance with the disclosure document provided to investors, although (with the surplus of office accommodation in the Tyger Valley area) rentals will be under pressure in the immediate to medium term.

 

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