do­ing well

Finweek English Edition - - Letters -

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

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