Hotel development on auction to recoup Realcor debts

25-04-2013
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IOL Property.co.za
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The ClareMart Auction Group has been instructed by the liquidator of Midnight Storm Investments 386 LTD to proceed to sell by public auction the semi completed landmark Blaauwberg Hotel development on Thursday, May 23 at 12 noon at the Radisson Hotel, Waterfront, Cape Town.

Midnight Storm Investments 386 LTD forms part of the Realcor Group of companies which began building the development with funding from a multitude of investors which comprised members of the public. Investor funds utilized in the development were introduced through three special purpose vehicles and after a number of years of inactivity and various court challenges, this property is now proceeding to auction.

One of the liquidators, Stephen Gore of Sanek Trust Recovery Services, says that the liquidators are aiming to sell the property at the best possible price to recoup as much as possible for the investors.

Claremart Chief Executive Officer, Jonathan Russell Smiedt, says that "The 144 room structure which is located directly on the well renowned postcard perfect beach, and which offers trademark views of Table Mountain and Table Bay was initially designed for an international and acclaimed award winning hotel group and the development has a degree of public interest due to it being in the centre of the Realcor financial scandal and our Group expects this auction to attract the attention of the South African media, who have been following events regarding Realcor for several years" .

Situated at the corner of Beach Boulevard and Beach Crescent, the site along with its semi-complete structure offers the large investor a rare opportunity to acquire a potential laden property along one of the most premier coastlines on the African continent. "The development which is at an advanced stage of construction will allow the visionary investor the opportunity to complete the original hotel development or provide the potential for the large investor to complete the structure with an eye towards a high quality luxury residential apartment block" says Smiedt. Based on the current zoning of the site, together with the opinion from architects, it has been indicated that the completion of the development as a residential block is certainly a possibility and may afford developers, in addition to the potential as a hotel, an alternative opportunity to complete the development in a potentially profitable manner.

The structure which has been started with the utmost superior design has a planned 144 rooms over nine floors. "Finishes to approximately 80 units are almost complete and the finishes to the remaining 64 units still are yet to be initiated" says Smiedt. There are a further three floors which will boast six executive suites on the 10th floor as well as two penthouses on the 11th floor and an additional two penthouses on the 12th floor. "All major structural elements are in place already and the remainder of development could be seen as a blank canvas which awaits the visionary investor's attention in regards to fittings and finishes" says Smiedt.

Smiedt adds that the movable assets of the hotel will be sold together with the property as one lot. "The development will be sold with all the furnishings, finishes and equipment initially purchased for the hotel and which were chosen with the utmost diligence to international hospitality standards". Movables range from furniture, mirrors, appliances and a host of ceramic and plumbing equipment to a host of other items and hardware necessary for a five star hotel flagship.

Bidders are invited to contact Andrew Koch on 021 425 8822 or visit www.claremart.co.za for a full list of movables and other information. Viewings will be by appointment only and the auction of this massive opportunity for the large investor will take place on Thursday, May 23 at 12 noon at the Radisson Hotel Granger Bay.

Claremart Press Release