Agricultural products group Crookes Brothers announced on Wednesday that the Department of Land Affairs has paid the R200 million purchase price for the Komatipoort Estate to the conveyancers in accordance with the land restitution programme.

The payment was received on July 6, 2010.

In terms of the agreement of sale and purchase, Crookes said it is entitled to interest on any part of the purchase price not paid by the Department at a rate of 15.5% per annum from the date of default to the date of payment.

The department however has given notice that it intends to contest the payment of this penalty interest.

Crookes added that the company's lease of the property from the Department commenced on the date of transfer, 2 July 2010, and farming operations on the property continue without interruption.

The term of the lease is 5 years, renewable at the company's option for a further 5 years.

Source: I-Net Bridge