Developer liquidated by builder
2008-12-18
THE company which developed the Leilani Heights block of flats in Malherbe Street, Paarl, has been liquidated, and the building is for sale. According to Mrs Nazrene Israel, owner of Sturdy Construction, the recent death of her husband had no influence on the termination of the project, as motion was brought against Mynhardville Properties in June and they were subsequently placed under liquidation. “Many of the statements made by Mr Mynhard van der Westhuizen are factually incorrect,”says Mrs Israel. “Sturdy Construction is a family-owned and run business. I own the business and my late husband, Mr Sedick Israel, was the head of operations, who effectively headed up the actual construction. “Sturdy Construction remains a well managed and thriving business, despite his tragic death. “Sturdy construction was contracted by Mynhardville Properties (Pty) Ltd, to build Leilani Heights in Malherbe Street, Paarl. “Practical completion was attained in May 2008, which means that Sturdy Construction had completed their scope of work and that the building was ready for occupancy by the pre-sales purchasers of the apartments. “However, transfer of the units could not be effected until such time as the civil works (parking area, outside wall, etc) were completed. “The civil works were not part of the Sturdy Construction scope of work, but were the responsibility of Mynhardville Properties (Pty) Ltd in order to get the building to transfer. In addition there were fees outstanding to the Municipality, which also needed to be settled by Mynhardville Properties. “In addition to the abovementioned, Mynhardville Properties in fact owed Sturdy Construction a hefty R 2,9 million. “This amount includes payment for works completed up to the final certificate, as well as a loan to Mynhardville Properties, which was to be applied for the settlement of outstanding amounts due to the Project Manager who brought an application for liquidation against Mynhardville Properties. “Many meetings were held involving the management of Sturdy Construction, my husband and myself, as well as the two directors/shareholders in Mynhardville Properties, Mynhard van der Westhuizen and Shawn Dreyer, accompanied by his wife, Mrs Sharon Dreyer. “During these meetings, commitments regarding the payment of Sturdy Construction’s monies owing were made. None of these commitments were kept, even though both Mr Van der Westhuizen and Mr Dreyer signed personal sureties in this regard. “Various meetings were held between Sturdy Construction, the bond holder and investors, in order to seek a way in which to alleviate the cashflow constraints of Mynardville Properties, thereby enabling them to complete Leilani Heights and protect the investments of purchasers that had bought apartments through pre-sales. “As far as I am aware, all of these pre-sales are still in effect, and have to my knowledge not been cancelled. “Motion was brought against Mynhardville Properties in June for the amount owed to Sturdy Construction CC and they were subsequently placed under liquidation. “Offers are open to potential investors to purchase Leilani Heights, which proves to be a fantastic investment as the current building costs of this building would exceed R25 million. “From an investor’s point of view most of the building has already been pre-sold, but there are a substantial amount of units still available, which could render a high selling price, making the purchase of Leilani Heights a really sound long term investment.” More information in this regard can be obtained through Sturdy Construction on 082-569-0906.
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