After more than a year of negotiations Saki Macozoma's Safika Holdings is not taking a share in the R1,2 billion Chintsa River golf estate.

Chintsa River Group spokesperson Di Stap confirmed that the deal for 25% of the shares is off.

Progress on the project has, however, not been affected and three other companies have been secured to take a 30% empowerment stake in the development. They are Biyana Developments (20%), BKD Mafu Family Trust (5%) and Tyalibongo Investment Holdings (5%).

"Many different empowerment groups were consulted, including Safika Holdings. After lengthy discussions, Safika decided not to invest as it was not their core business," Stap said.

It was reported last year that Macozoma, who is the deputy chairman of Safika, showed interest in the development and would also buy two stands to "show his faith in the development".

Yesterday, Safika group's legal executive Sarah Smith said the development did not fit Safika's investment portfolio and it had also been unable to reach an agreement with the estate's British developer, David Eastall.

"The reason for our decision had nothing to do with the development itself or the parties involved in the development.

"Safika is of the view that the project is a very positive one and will be good for the area.

"The parties were simply unable to reach final agreement on certain of the commercial terms underpinning the transaction," Smith said.

She declined to spell out what the commercial aspects were.

She did, however, add that the company would continue to explore investment opportunities in the Eastern Cape in partnership with local groups.

Eastall, who is presently in Spain, said that he was not disappointed with Safika not investing in the project.

"In the end it worked out well.

"We still have Saki's personal support," he said.

An updated shareholding structure of the estate shows that an international investment company, Cairam Trust, will take 50% of the development and South African-owned Dancer Properties, 20%.

Stap said all approvals and the Record of Decision (ROD) for the project's first phase were in place.

"The first phase of development will be the fencing of the estate and the bulk infrastructure.

"Building of the first houses and the first three holes of the golf course is due to commence in early 2007," she said.

The development will include a 160-room resort hotel; an 18-hole championship golf course and a golfing academy; other sports and entertainment facilities; an office park and retail centre; and about 650 houses.

About 1000 jobs will be created in the construction of the development - about 800 of them permanent.

Eastall said: "We have sold 50% of the first phase already without a great deal of advertising."

Daily Dispatch
Publisher: I-Net Bridge
Source: I-Net Bridge