09 December 2014
We would like to take this opportunity to thank our investors for their patience and understanding they have had with us during the past five months. Understandably the enquiry into our business had brought about various concerns and panic. Five months ago we found ourselves in stormy waters and somewhat in a chaotic situation. We can say today with utmost confidence that the situation is under control and the way forward has become clear.
As mentioned in our previous communications, the nature of your investments is directly in fixed immovable property and the income (rentals) derived from these properties are distributed as dividends to shareholders. As at August 2014 all forms of trade were put on hold affecting targeted completion of buildings for our last two projects. Completion targets that were anticipated for December 2014 could not be realized as reconstruction and revamps had to be put on hold. Construction will commence in January 2015 and these properties should be complete and ready for letting by June 2015.
At this stage we have managed to maintain dividends at approximately 8%pa. Additional income from the above mentioned properties for the related projects and escalations in rentals should show a gradual increase in dividends for the year 2015. New and better systems are being put in place to ensure efficiency with the day to day running of these properties. Better deals on insurance premiums, bank charges, and stricter control over maintenance and the general expenditure of these properties.
DMC has always acted in the best interest of the shareholders and as such, high consideration was given to the advice received from our investors.
1) To contain operations
2) To maintain properties and keep them in lettable condition
3) To administer better control of expenditure
4) To supply monthly statement of account to shareholders
5) To market and sell properties at the right time and the right price
6) Consolidating and creating a property fund or joint rent-roll
How a fund or joint rent-roll works, is that all companies will be consolidated, all loss and gains will be equally distributed among shareholders. Expenses incurred due to maintenance or loss of tenancy will not have to be carried by a specific company and its property alone. Recently a multinational company, the Ellerines group went into liquidation resulting in the loss of income, running into hundreds of thousands of rands. An anchor tenant does not necessarily mean a better performing property. Whether it is an anchor or independent tenant there will always be the element of risk. The above options will definitely have an advantage when faced with a similar situation in the future.
We are working tirelessly, focusing our energies on the marketing and sale of the properties. Shareholders need to understand that we cannot give a definite time line on when payouts will be made as due process must be followed. Offers to purchase must be received in writing which will convert to a Deed of Sale, once an agreement has been reached by both parties. Shareholders have to be informed and consent has to be received from the shareholders for the sale of the property and only after this process can the deal be concluded. The sale has to be lodged at the deed office in order to receive transfers and exchange of funds. This process can take up to six months or longer.
Let there be clarity on the stability of DMC and the security of shareholders investments. Assets in the form of syndicated buildings are in place and rental income is still being derived from these properties as can be confirmed by the continuation of dividends. DMC is not under administration, liquidation or bankrupt. All assets are free hold (Bond free) and ultimately shareholders decide on the outcome of the properties they have invested in. Until the enquiry is not finalized, we are not allowed to trade, purchasing or selling of properties or shares. Therefore any refunds on shares cannot be made at this stage.
Our offices will be closed from the 19th December 2014 until 05th January 2015
Dividends for the month of December will be paid from the 22nd December 2014
We thank our shareholders for their unwavering support and loyalty. Your patience and understanding is deeply inspiring and motivates us to serve your best interests. We welcome your suggestions and recommendations for improvements in our customer service as well as any constructive criticism. Please feel free to contact us.