15 October 2014
As per our letter dated 18 September 2014 regarding the auction of properties which was held on Tuesday 14/10/2014, be informed that the desired result was not achieved. We are currently negotiating with several interested parties and will inform you as we progress further. The FSB has handed over the enquiry to the NCC (national consumer council) who will revert with a final report within 90 to 180 days.
Over the past few weeks various rumors have surfaced which may have caused panic mainly due to the misunderstanding of the nature of their investments. Shareholders need to understand that their capital is invested directly in fixed immovable property and only upon sale of property/s can capital be returned.
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 and 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. DMC does not hold shares in any company. Until enquiry by the NCC is not finalized, we are not allowed to trade, purchasing or selling of properties or shares. Therefore any refunds on shares or administration fees cannot be made.
OWNERSHIP OF SYNDICATES
For each syndicate a separate company was formed, owning one or more properties. The ownership of the companies is directly vested in the shareholder/s of each syndicated company. DMC as a construction company also acted as a management/administration entity to the syndicated companies.
Shareholders have the right at their discretion to appoint new director/s from the shareholders of each syndicate company, or new management agents if they so wish, to
continue managing the companies. We will gladly assist and liaise with any new parties to assist in this regard.
Dividends will be calculated in direct relation to the income and expenses of the property. Consideration with regards to the expenses will be taken as follows:
1) Rates and Taxes
3) Cleaning services
4) Collection fees
5) Bank charges
7) Water and electricity
As above do not have fixed values, dividends will be recalculated on a monthly basis.
Share certificates and IT3 (b) tax certificates that were issued are proof of ownership of unit shares purchased in various companies.
Advice given by shareholders that we are considering as an alternate way to resolve matters in the best interest of all shareholders is to look at setting up a property fund. How a fund works is that all companies will be consolidated, all losses and gains will be equally distributed among shareholders. Advantages are that your capital is secured and returns will be between 7% and 9%.
It has come to our attention that a number of investors are having difficulty in contacting our offices, this is due to our switch board not being able to handle the volume of incoming calls. For your convenience please make use of these alternate numbers.
Grace – 079 606
Jameel – 072 789 8338
Please call or text a message on the above numbers and we will respond to you as soon as possible.
We thank you for your patience and understanding