One of South Africa’s top golf estates, Pinnacle Point is to be sold as the company that owns it tries to raise capital in the weak local property market. The company is believed to have scaled back on its head-office staff complement and sold assets that are not part of its future strategy.
The Pinnacle Point property group has said that it will sell the Clarens golf and trout estate in the eastern Free State. Apparently the company is in advanced negotiations aimed at quickly concluding the sale.
It is also selling the Pinnacle Point Beach & Golf Resort and according to the company it has entered into an agreement with an unnamed consortium that intends to convert the resort into a five-star golfing destination that will host a major championship some time in the future.
Pinnacle Point golf course is located near Mossel Bay in the southern Cape and stretches along four kilometres of coastline. Details of the sale will be announced when certain specific conditions have been met.
The company claims that it is in advanced discussions with potential investors who will inject fresh capital and debt funding in order for it to realise the full potential of its property assets.
It claims, in a statement to shareholders, that earnings for the 12 months to February next year will be between 60% and 80% higher than the previous year.
There have been reports that law firm Edward Nathan Sonnenbergs has applied for the liquidation of Pinnacle Point Group in respect of legal fees amounting to more than R771k.
There have also been reports that construction workers employed at the R1,5-billion luxury Wedgewood Estate in Port Elizabeth had walked off the site because they had not been paid.
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