Developers of a R14 million apartment block development in East London have scratched the deal and some of the investors, who have already had bonds approved, may now lose out.

In its place the developers now plan a 30-unit block, which will probably cost more.

Local jeweller Dennis Collins, one of the three directors of the original Mastellu property developing company, said the Weavers Valley development had been cancelled because a stream which flows through the property had not been reflected by the surveyors.

Instead of a 21-apartment block, the developers are now planning a 30-unit block at the site next to the Old Transkei Road, which leads down to the Batting Bridge.

He said the developers would now build the apartments to completion and not, as previously, sell on plans.

Collins said he was aware some investors were unhappy but "once the new development is completed and we have decided what to sell, those people will get the first bite".

In a letter to one of the original investors, Pam Golding's Hanlie Bassingthwaighte said the existing municipal plans on which the plans had been drawn up were inaccurate.

Bassingthwaighte said all units in the 21-block apartment had been sold.

Mastellu's directors - Collins, Richard Tebutt and Tyron Gower - have now teamed up with another developer, Erroll Petersen, and two other business associates, and have put up money to consolidate the land next to Weavers Valley for the 30-unit apartment block.

Among the first investors to buy into Weavers Valley were the wife and daughters of medical specialist Paul Bak, who bought four units for which bonds had been approved.

Dr Bak said he had asked his attorney, Terry Mathie, to look into the legalities of the cancellation.

However, according to an escape clause in the contract, the developers were within their right to cancel the deal. In some cases they have already repaid deposits and interest to the investors.

"I have asked Mathie not to deposit our cheques. I first want him to write to Pam Golding to ask for an explanation," said Bak.

Collins said legally there was nothing that investors could do.

"We just need some breathing space."

He however admitted that it probably would cost more than the R650,000 it would have cost for one of the 21 old units to buy into the new development.

"The price may change but what we will offer would be something different."

Daily Dispatch