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Condere Project Framework  

 

Using the Share Block method as a development vehicle

A 'share block scheme' is defined in the Share Blocks Control Act 59 of 1989 as any scheme in which a share, in any manner whatsoever, which confers a right to or an interest in the use of immovable property.  

 

Furthermore, section 4 provides that for the purposes of the act, a company is presumed to operate a share block scheme if any share of the company confers a right to or interest in the use of immovable property or any part of immovable property.    

So, a syndicated development as is planned for Condere Estates at Mthatha will be governed by the Share Blocks Control Act.  

 

Share Block developments are not new to metropolitan cities like Durban where most of the beachfront property in the city especially that which is surrounding Ushaka Marine World had been developed on this basis.

The difference in our proposal is that the seller of the initial shares will derive no reward or benefit for doing so, and the share block company will benefit only those who co-invest in the scheme.  

 

In simple terms the scheme will work as follows. 

  • The “seller” will sell 100% of the shares in the share block company; limited for a nominal R1 per share.   
  • The purchaser will loan the company 3% (about R10 000 rand) of the purchase price of the chosen units which they wish to develop.   
  • The purchaser will sign limited surety for their pro rata share of the mother-bond (development finance for the project), issued in favor of the financial institution who will provide the balance of the capital required.   
  • The share sale agreement will provide for the conversion to sectional title upon completion of the building, at which point the share-block company will be wound up and the mother-bond will be extinguished, and replaced with individual conventional home loan finance in the name of the investor/buyer or 3rd party buyer.   
  • Co-developers and investors interested in participating in the scheme will be asked to sign a letter of intent available upon request.   
  • Upon full subscription (100% sales) the share sale agreements will be presented and funds released to begin the construction phase.   
  • The balance of the project finance will be provided by a financial institution as bridging finance until completion of the construction phase and opening of the sectional register.  
  • The land on which we will build was obtained “Free of Charge” in that the land Owner donated the property to the Developer.  
  • The Owner and the Developer remain shareholders in the share block company Condere Real Estates (Pty) Ltd until all sectional titles are registered.  
  • Buy your apartment direct from the Developer and save – NOW   
  • No SPECULATION, no RISK and no LOSS to the INVESTOR.   
  • We envisage construction to be completed in November 2010.  

This method has been substantially researched and further information is provided by Saleem van Staaden who is an expert in this field. 

DEVELOPER:

Nebula Mega Prop (Pty) Ltd 

PHYSICAL ADDRESS                        TELEPHONE CONTACTS 

21 Don Thompson Drive                      Phone: 047- 532 5514 

Fort Gale                                              Fax: 0866 507 200 

P.O. Box 704                                       Cell: 083 6606 510 

Mthatha                                                Cell: 083 726 7333 

Eastern Cape                                       Cell: 082 855 7460 

Email: saleem@megaprop.com            

Website: www.megaprop.com   

Brezh Sharpley Attorneys 

PHYSICAL ADDRESS                        TELEPHONE CONTACTS 

34 Stanford Terrace                              Phone: 047-531 2996 

Mthatha                                                  Fax: 047-531 2408 

Eastern Cape                                        Cell number: 084 243 5912  

Email: brezhs@smithtabata.co.za   

 

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