Gloomy outlook for investors in 'shambolic' Sharemax

Monday Jun 27, 2011
Gloomy outlook for investors in 'shambolic' Sharemax ( Top Photo...Willie Botha )


Thousands of people who have invested in an embattled property syndications company will have to wait with bated breath to see how much of their hard-earned money they will get back.

Negotiations are in progress to work out a deal for the company's investors, some of whom have been left in the lurch financially.

It is understood that about 40 000 shareholders, most of them pensioners, invested in Sharemax's property syndication schemes.

Despite instructions by the Reserve Bank that it pay out its investors, Sharemax does not have the funds to do so.

This is according to economist Dawie Roodt, who is also an independent director of the new Sharemax board.

Roodt said he and other directors had been brought in to help facilitate the paying out of investors. He described the company as "a complete mess".

They did not plan to liquidate the company because doing so would only leave investors worse off.

They had kept the company afloat and were now working on a deal for the investors.

Among the investors are pensioners Tony and Jacqueline Bekker, who are in their 70s and battling to keep up with their mounting bills.

They fear that by the time they have been given back the R490 000 they invested in Sharemax's syndicate the Zambezi Retail Park, they "will be dead".

According to Roodt, Sharemax has proposed that it repay investors in instalments over 10 years, and 30 percent interest over the following five years.

"That's what's on the table at the moment, but we're negotiating to see if we can get something better for investors," said Roodt.

"I hate to be the bearer of bad news, but investors need to know they must prepare themselves for a loss in income and possibly a loss of capital."

The Bekkers, however, are adamant that they will reject the proposal in its current form.

"While the grass is growing, the horse is dying," said Tony Bekker. "We can't wait 10 years for our money.We need it now."

Cape Times

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Bonatla ontdek in forensiese ondersoek honderdmiljoene is weg (Ou Nuus van 2010)


Jacques Pauw



Bonatla, die maatskappy wat Sharemax wil oorneem, het vandeesweek dié eiendomsindikaat se direkteure in kennis gestel dat honderdmiljoene rand by die twee grootste sindikaat-maatskappye weg is.

Bonatla en sy uitvoerende hoof, mnr. Niki Vontas, doen tans ’n ouditondersoek na al 39 sindikaatmaatskappye van Sharemax. Dit is in dié ondersoek dat ontdek is miljoene is weg en volgens Rapport se inligting is die ouditondersoek nou verander in ’n volledige forensiese ondersoek.

Vontas wil glo Dinsdag die resultate hiervan bekend maak.

Hy het gister geweier om enige besonderhede oor die onderhandelinge tussen Bonatla en Sharemax bekend te maak, maar het bevestig dat daar “groot probleme” is en dat die verhouding tussen die twee partye “nie goed is nie”.

Die drama tussen Vontas en Share­max draai glo rondom die twee grootste sindikaatmaatskappye, The Villa en Zambezi Retail Park in Pretoria.

Sharemax het reeds R1,65 miljard se beleggings in The Villa ingewin, maar Bonatla sê dat die halfgeboude struktuur niks meer as R850 miljoen werd is nie.

Vontas eis nou antwoorde van Sharemax en wil weet wat van die geld geword het. Selfs al sou bemarkingskoste, regskoste, advertensies en kommissies in aanmerking geneem word, meen hy daar is honderdmiljoene rand weg.

Vontas wil ook weet wat van al die geld geword het wat Sharemax vir Zambezi ingewin het. Dié sentrum is vir sowat R950 miljoen gesindikeer, maar is veel minder werd.


- Rapport

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‘Geen geld vir sindikaat se beleggers nie’
2010-09-04 23:06

Mnr. Willie Botha

Foto's ·
Jacques Pauw



Daar is nie meer geld om Sharemax se beleggers mee te betaal nie.

Duisende beleggers in die twee groot maatskappye van die om­stre­de Sharemax-eiendomsindikaat het op die laaste dag van Augustus nie hul maandelikse dividende gekry nie. En teen druktyd gister het mense, ondanks Sharemax se beloftes, steeds nie hul geld gekry nie.

“Sharemax se kaartehuis is besig om in te plof,” het mnr. Magnus Heystek, gerekende finansiële adviseur en skrywer, gesê.

Mnr. Eddy Carter-Smith, finansiële adviseur en eiendomskenner van Somerset-Wes, beaam dit.

“Vrydagaand het een van Sharemax se direkteure my gebel en bevestig dat die beleggers nie betaal gaan word nie. Hy was in trane en sê hulle kry oproepe van pensioentrekkers wat dreig om selfmoord te pleeg omdat dié dividende hul enigste inkomste is.”

Die Reserwebank het Sharemax in Mei vanjaar in kennis gestel dat hy miljarde rande onwettig van beleggers ingewin het. Rapport het toe berig dié bevinding beteken beleggers kan baie geld verloor. Sharemax het Rapport se berig as oneties bestempel.

Die Sharemax-drama het egter verdiep met die bedanking van sy besturende direkteur, mnr. Willie Botha, verlede maand. En die afgelope week het Sharemax aangekondig dat hy sy sindikaatmaatskappye wil verkoop.

Twee dae later is beleggers in The Villa en Zambezi Retail Park (die twee grootste maatskappye) nie betaal nie. Beleggers in die ander maatskappye is wel betaal.

Bouwerk aan The Villa, Sharemax se R3 miljard-ontwikkeling in die ooste van Pretoria, het ook nou tot stilstand gekom. ’n Woordvoerder van die boukontrakteur GD Irons sê hulle is nie betaal nie en dat “Sharemax se geld op is”.

Heystek sê die tienduisende beleggers in Sharemax het klaar verloor; dis net ’n geval van hoeveel. Hy het die voorgestelde oorname as ’n “gekkespul” afgemaak en gesê die beleggers gaan seerkry.

Vic de Klerk, ’n senior joernalis by Finweek, sê as die oorname plaasvind, sal beleggers gelukkig wees om 20c tot die rand terug te kry.

“Maar indien die oorname nie deurgaan nie,” sê De Klerk, “gaan Sharemax waarskynlik in elk geval in duie stort.”

Sharemax het gister gesê die transaksie met Bonatla is “in belang van aandeelhouers” en hulle hoop dat die afhandeling daarvan die “tydelike nie-betaling” van aandeelhouers sal besleg.

Mnr. André Prakke, forensiese ouditeur en kritikus van Sharemax, sê dit kan tot ’n jaar duur voordat die voorgenome oorname afgehandel is. Tot dan twyfel hy of beleggers in The Villa en Zambezi enige dividende gaan ontvang. Daar is ook geen waarborg dat hulle daarna enige dividende gaan kry nie.

Die beoogde oorname moet nog deur die JSE en die mededingingskommissie goedgekeur word en Prakke twyfel of dit gaan gebeur. Die aandeelhouers self moet nog die oorname goedkeur.

De Klerk beskryf die oorname as ’n “duur voorstel” en sê die kans is “nul” dat die transaksie goedgekeur sal word.

Heystek glo ook nie die oorname sal deurgaan nie en sê Sharemax- beleggers moet bekommerd wees oor Bonatla, wat nie ’n goeie geskiedenis het nie.

De Klerk sê Bonatla is ’n “muis” wat ’n “olifant” wil oorneem. Bonatla is in 2007 op die aandelebeurs genoteer, maar sy aandele verhandel omtrent glad nie.

Bonatla se hoof- uitvoerende beampte, mnr. Niki Vontas, is in 2004 bankrot verklaar weens R70 miljoen se skuld. Hy is in 2008 gerehabiliteer. Die verhandeling van dié maatskappy se aandele is ook al ’n slag opgeskort.

Financial Mail het in 2007 oor Bonatla gesê: “Daar is ’n gebrek aan deursigtigheid en daar is praatjies van bedrog. Jy moet ’n baie dapper belegger wees om op dié maatskappy te dobbel.”

Vontas sê hy hoop beleggers “sal die pad saam met hom en Bonatla loop”. Hy onderneem om in hul beste belang op te tree. Hy glo die oorname sal deurgaan en dat die enigste oplossing is om die beleggings in Sharemax te beskerm.


- Rapport
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Sharemax malls may be saved

Johannesburg - Sharemax’s biggest property syndications have been saved from possible liquidation.

But investors in The Villa and Zambezi Retail, two large shopping centres to the east of Pretoria, should prepare themselves for not receiving the promised income or all their capital back.

Besides, these investors will have to wait up to 20 years for their money.

This is after the High Court last week approved the proposed schemes of arrangement for The Villa and Zambezi, thus avoiding possible liquidation of the buildings – which would have had catastrophic consequences for the investors.

The schemes of arrangement will be presented to investors and creditors for approval, after which they have to be finally ratified by the court.
Dawie Roodt, one of the independent directors of the property companies in the Sharemax stable, said investors should prepare themselves for a loss of income and capital.

In the case of Zambezi, investors’ money will be repaid over a period of 15 to 17 years. During this time they will earn no income and full repayment of their capital cannot be guaranteed.

Repayment of their money will be based on the net rental income earned from the building, and will end as soon as investors have received back 130% of the original amount they invested.

The total repayment to investors would therefore be at most R983m, representing 130% of the original R688m invested.

In terms of the scheme, for the first 10 years investors will receive 70% of the net income from Zambezi. By then, if the full amount has not been repaid, the scheme will continue for another two years. For the next five years investors will be paid 30% of the net income.

Similar detailed information for The Villa is not yet available.

In terms of the approved scheme of arrangement for The Villa, the building will be completed when the necessary finance can be obtained.

At this stage it is unclear how much money is required for The Villa’s completion, but sums of R800m to R1.6bn have been mentioned.

Roodt said the scheme of arrangement for The Villa has been drawn up in such a way that it can be modified should a better plan for the half-completed building be found.

Repayments to investors will start as soon as The Villa is completed and an income earned. These repayments could then, as in the case of Zambezi Retail, also take place over an extended period.

Roodt said the scheme of arrangement for so-called income plans for other Sharemax syndications had also been approved by the court.

The buildings from which investors in the income plans receive money are healthy, and investors ought to get their capital back, said Roodt.

The scheme of arrangement for the so-called growth plans for buildings yet to be developed still has to be approved by the court.


Fin24 Adri van Zyl
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Tienduisende beleggers in Sharemax dalk geld kwyt
2010-07-24 22:55

JACQUES PAUW EN ANNA-MARIA LOMBARD IN JOHANNESBURG

Die Reserwebank sal dalk binnekort moet besluit of hy Suid-Afrika se grootste eiendomsindikaat gaan dwing om duisendmiljoene rande aan tienduisende beleggers terug te betaal.

Kenners sê sou die Reserwebank dít doen, loop beleggers – van wie die meeste pensioenarisse is – gevaar om geld te verloor.

Dit kom nadat die Reserwebank onlangs bevind het Sharemax Investments het ses jaar lank minstens R5 miljard op onwettige wyse van sowat 40 000 beleggers ontvang. Sharemax het soos ’n bank opgetree sonder om as een geregistreer te wees.

Sharemax werf die afgelope dekade beleggings van die publiek wat hy in eiendomsontwikkelings belê. Die belegging het ’n vasgestelde maandelikse rentekoers – heelwat hoër as die bankkoers – en bied kapitaalgroei. Sharemax erken in sy prospektusse dit is “hoërisiko-beleggings”.

Sharemax het beleggers die afgelope week verseker hul geld is veilig en sê hy stem nie saam met die Reserwebank se bevinding nie.

Mnr. André Prakke, ’n forensiese ouditeur en geoktrooieerde rekenmeester, sê egter: “Beleggers kan beveel word om alle rente en dividende op hul beleggings terug te betaal. Hulle het mos in ’n onwettige skema belê.”

Sharemax is een van min eiendomsindikaatmaatskappye in Suid-Afrika wat nog sake doen. Die laaste jare is minstens ses ander óf bankrot verklaar óf onder geregte­like bestuur geplaas.

Gevolglik is duisende beleggers sonder inkomste gelaat.

Sharemax se beleggers sluit pensioenarisse en sake- en sportlui in. Die meeste het minstens R100 000 in winkelsentrums of eiendomsontwikkelings belê.

Een van hulle is die Springbok-losskakel Morné Steyn. Sharemax het onlangs op sy webtuiste aangekondig Steyn het nie net ’n belegger geword nie, maar “bied ook sy dienste aan Sharemax Investments by saamtrekke en ander openbare geleenthede. Sy gesig kan dalk ook in reklame gebruik word.”

Die Reserwebank sê die Sharemax-saak is “hangende” en verskeie aspekte moet nog “uitgewerk” word. Sharemax is tot Woensdag gegee om ’n voorlegging aan die Reserwebank te doen oor hoe hy sy sake in die toekoms gaan bedryf.

- Die adjunk-registrateur van banke van die Reserwebank, mnr. Michael Blackbeard, sê: “Wanneer in ’n ondersoek bevind word ’n persoon bedryf die besigheid van ’n bank sonder om as een geregistreer te wees, beskik die kantoor oor magte om die besigheid stop te sit; die deposito’s (of ’n pro rata-deel) aan beleggers terug te betaal; en om die saak aan die SAPD te oorhandig vir strafregtelike vervolging.”

- Prakke, ’n fel kritikus van Sharemax se finansieringsmodel, sê dít kan katastrofies wees vir die skema. Hy het in 2007 al gewaarsku Sharemax oortree die bankwet.

Eiendomsindikate is die laaste paar jaar bekyk omdat hulle glo beloftes van buitengewoon hoë rentekoerse aan beleggers maak en die bankwet oortree.

Kritici meen hulle het kenmerke van piramideskemas omdat beleggers se rente uit nuwe beleggers se deposito’s betaal word.

Bluezone, ’n gelikwideerde sindikaatmaatskappy, het sowat 6 000 beleggers gehad wat altesame sowat R800 miljoen belê het. Dié beleggers gaan nou hoogstens 20% van hul aanvanklike beleggings terugkry.

Prakke sê Bluezone en Sharemax se finansieringsmetode toon ooreenkomste, en dat die Reserwebank se bevinding kan lei tot aansoeke om Sharemax-maatskappye te likwideer.

“Ek sou baie bekommerd gewees het as ek ’n belegger in een van Sharemax se maatskappye was,” sê Prakke.

- Sharemax se besturende direkteur, mnr. Willem Botha, sê egter beleggers se geld is “100% veilig”.

Hy sê die verskille tussen Sharemax en die Reserwebank is “tegnies” en nie “’n doelbewuste oortreding” van die bankwet nie.

Botha sê hy verskil van die Reserwebank se vertolking van die voorwaardes waarop skuldbriewe uitgereik mag word en het die bank gevra om sy bevinding te heroorweeg. Hy sê as die Reserwebank volstaan met sy bevinding, sal hulle die hof “gesamentlik wil nader vir ’n verklarende bevel hieroor”.

- Prakke sê hierop: “Sou die hof met die Reserwebank saamstem, sal die bank teen Sharemax móét optree, want dan is beleggings onwettig bekom.”

- ’n Onafhanklike finansiële ontleder, mnr. Lardo Stander, sê as Sharemax gedwing word om beleggers terug te betaal, sal hy die sowat 30 winkelsentrums wat hy landwyd besit, moet verkoop.

“Sharemax koop of ontwikkel ’n winkelsentrum vir R100 miljoen, maar sindikeer dit vir, sê, R130 miljoen,” sê Stander.

“As hulle gedwing word om dit te verkoop, gaan hulle met die val in die eiendomsmark baie minder as die aanvanklike koopprys kry. Dan verloor beleggers.”

- Botha het egter aan Rapport gesê Sharemax het sy finansieringsmodel ná die Reserwebank-bevinding in Mei verander om aan die bankwet te voldoen.

Botha sê Sharemax het nog altyd gepoog om wetgewing na te kom en sy beleggers het die afgelope 11 jaar hul opbrengste stiptelik ontvang.

Sharemax het voorheen deposito’s ingesamel en ’n mengsel van skuldbriewe en aandele aan beleggers uitgereik.

Hy mag nou nie meer in skuldbriewe handel dryf nie en slegs aandele word uitgereik. Sharemax sê niks gaan vir beleggers verander nie – hulle gaan nou maandelikse dividende pleks van rente ontvang.

- Prakke sê egter hoe meer Share­max die bankwet probeer nakom, hoe meer verbreek hy die maatskappyewet. Hy sê Sharemax publiseer sedert Mei prospektusse sonder dat hy “die komplekse en tydsame proses gevolg het wat die maatskappyewet vereis. Die akte en statute van oprigting moet verander word.”

- Botha sê Sharemax se nuwe model voldoen aan wetgewing.

- Stander bereken dat Botha, ander aandeelhouers en die finan­siële adviseurs R1 miljard wins gemaak het sedert 2004. Botha wou nie hierop reageer nie.

- Sharemax is tans besig met ’n R3,5 miljard-ontwikkeling net oos van Pretoria.

The Villa behels winkel-, kantoor- en hotelruimte. Die helfte van die ontwikkelingskoste is reeds by beleggers ingesamel.

Stander en Prakke sê volgens Sharemax se nuwe model betaal hulle nou maandelikse dividende aan beleggers in The Villa. Dividende kan egter slegs uit behaalde winste betaal word. Die sentrum word egter nog ontwikkel en daar is geen winste nie.

“Dis onreëlmatig,” sê Prakke. “The Villa is vir alle praktiese doeleindes bankrot. Waar kom die winste vandaan?”

Stander bereken Sharemax, sy aandeelhouers en finansiële adviseurs gaan R500 miljoen wins maak uit The Villa.
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Zambezi, The Villa transferred to Sharemax group companies
July 22 2011 at 05:00am
By Roy Cokayne


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Roy Cokayne


Ownership of Zambezi Retail Park and 80 percent of The Villa, two of the partially completed property developments syndicated by troubled Sharemax Investments, has been transferred to Sharemax group companies.

A statement issued yesterday by the boards of the Sharemax syndication companies announced the transfer of ownership of the properties from Capicol, the developer of both projects.

It said the boards were now able to progress with the implementation of the schemes of arrangement process “to the enhanced benefit of the investor body as a whole”.

It said these processes were expected to be completed by the end of next month and after sanctioning of the schemes by investors, the Reserve Bank would be approached to withdraw the directive imposed on the Sharemax group of companies.

Chase International managing director Pierre Hough, a financial adviser, previously claimed the planned offer of compromise and scheme of arrangement was seeking to legalise an illegal act and was prejudicial to the rights of “prospective investors”.

He said the issue of share certificates to prospective investors was also highly irregular and possibly fraudulent.

Sharemax defaulted on monthly payments to investors from September last year and construction on both Zambezi Retail Park and The Villa stopped in the same month when funds due from Sharemax to Capicol dried up.

The registrar of banks, also in September, appointed statutory managers to Sharemax and all its syndications to manage the repayment of investments after an investigation found Sharemax’s funding model contravened the Banks Act.

About 40 000 shareholders have invested R4.5 billion through Sharemax’s various property syndications.

The Sharemax board statement added that the transfer of ownership meant future income from the business activities at Zambezi Mall would accrue to the benefit of investors.

Capicol would have no further involvement in regard to investment returns becoming due to investors from Zambezi Mall, it said. But it warned that the current weak rental status at the mall would have to be improved “before investment returns will eventuate”.

The Villa transaction was concluded this week and it was contractually agreed Capicol’s 20 percent interest in the project would be available for acquisition at various stages at predetermined amounts.

It referred to a suspensive condition in The Villa agreement, which has to be fulfilled by August 15.

It gave no specific details about this condition other than if it was not fulfilled, Capicol would no longer be involved in the development, including the completion and management of the centre, apart from its 20 percent stake.

The statement said the acquisitions of both properties had paved the way for the board to effectively promote financing activities in regard to the completion of the project from an enhanced commercial basis.

However, it did not disclose how the transfer of ownership had been achieved, particularly as it was previously disclosed that some of the companies in the Sharemax group were bankrupt and Sharemax did not have the money to pay outstanding amounts to allow for the transfer of ownership to take place.

Attempts to obtain comment from Dawie Roodt, a spokesman for the new Sharemax group board, were not successful. Paul Kyriacou, the chief executive of Capicol, was also not available for comment yesterday.