By Sbongile Dimbaza and Yolandé Stander
Assets of the beleaguered developers of two plush multi-million- rand shopping centre developments in the Eastern Cape have started going under the hammer.
While the future of the troubled R300-million King’s Court complex in Nelson Mandela Bay’s Miramar and the R120-million King’s Mall in East London is still unclear, they could be auctioned off as early as in the new year.
King Financial Holdings (Kingfin) – a Wellington-based company responsible for the developments – was placed under provisional liquidation by the Western Cape High Court earlier this year after an investigation by the Financial Services Board (FSB).
Liquidators Sanek Trust and Independent Recovery Services have since been appointed and have now begun the disposal process of the company’s assets.
The first assets to hit the auction floor were two property developments in Polokwane and Centurion.
Sanek Trust director Stephen Gore said the company had appointed property administrators Hermans and Roman Property Solutions to administer King’s Court. The company has been tasked with finding new tenants, maintaining the property and collecting rent.
Gore said the properties would probably be sold during the course of next year. “The focus at this stage is to try to let the vacant areas and deal with tenant-related issues,” he said. At the appropriate time, the property would be sold.
According to auctioneers Alliance Group, there was strong talk that it could be mandated early next year to auction off the property. “This is something which is being discussed,” a senior official said.
Disgruntled tenants at King’s Court have revealed that business had declined but they were still being forced to pay rent of between R11000 and R13000 a month.
Some have tried unsuccessfully to get out of their lease contracts, complaining that management had failed to address rumours the centre would be auctioned off while at the same time tying them to their contracts which expire in November next year.
Source: The Herald
Publisher: I-Net Bridge
Source: I-Net Bridge
