WE ARE ACTING on behalf of the companies Euphoria Golf Estate (Pty) Ltd, Euphoria Country Club (Pty) Ltd, Euphoria Lodges (Pty) Ltd, Euphoria Food and Beverages (Pty) Ltd and Euphoria Hydro (Pty) Ltd. In addition to these companies we also represent the Euphoria Homeowners’ Association, a section 21 company. Its members are the 400 owners who have already bought stands in the development.
We refer to an article under the heading “Insight” in Finweek (22 April 2010; the equivalent article appears under the heading “Insig” in the corresponding Afrikaans edition). The article deals in broad terms with the effect of the economic recession on the property market, in particular the holiday home market and the golf estate developments, which have become so popular in recent years.
It’s alleged in the article that “golf estates are capital-intensive and few developers have the cash flow to keep their projects afloat until the market recovers”.
The Highland Gate Golf & Trout Estate in Dullstroom is then referred to as the most recent golf estate to “go bust”. The article continues: “The bankrupt estate went under the hammer a year ago amid rumours that the development would be snapped up by Middle East investors. But not a single bid was made and the semi-completed estate remains unsold.”
Six other golf estates are then referred to and the opinion is expressed that these six may be heading the same way. This is clearly a reference to the fate of the socalled “bankrupt estate”: namely, Highland Gate Golf & Trout Estate in Dullstroom.
We must bring it to your attention that this article has prejudiced our client because our client is associated in so many words with the “bankrupt estate”, Highland Gate Golf & Trout Estate in Dullstroom, which is now a “semi-completed estate” that “remains unsold”.
Our instructions are that the six golf estates that you referred to, with the possible exception of Pinnacle Point near Mossel Bay, are all golf estates that are still being developed and have not yet been completed. Euphoria Golf Estates (Pty) Ltd development in Naboomspruit, one of the clients we are representing, is in a completely different position, since its development has already been completed:
The golf course and pro shop have been completed and are fully operational and are being run by Euphoria Country Club (Pty) Ltd; the hotel has been completed and is fully operational and is being run by Euphoria Lodges (Pty) Ltd; the four