South African Reserve Bank

As you already know, Sharemax Investments (Pty) Ltd (Sharemax Investments) and the Sharemax Investments-promoted investment companies, of which you are a shareholder, were placed under Directives and Statutory Managers were appointed in terms of the Bank Act, by the South African Reserve Bank (SARB) on 16 September 2010. This was because the SARB was of the opinion that Sharemax Investments and the public and private companies having been promoted by Sharemax Investments (“the Sharemax promoted companies”) were contravening the Banks Act.

The appointment of the Statutory Managers has had far reaching consequences for the Sharemax promoted companies and for the investors in the various property investment projects. Details of the main consequences are provided hereunder.

The Statutory Managers are under instructions to protect the investors’ (shareholders’) capital. For this purpose, the SARB and the Statutory Managers have approved the structuring and proposing of Schemes of Arrangement in regard to the Sharemax promoted companies, in order to serve the best interests of all the shareholders and the companies under Directives. More detail regarding the present status of the scheme of arrangement process is provided hereunder.

The Independent Boards are pleased to advise that the High Court of South Africa has granted a Court Order providing leave to the Independent Boards to convene meetings of investors (shareholders) and creditors, in terms of Section 311 of the Companies Act, in respect of Zambezi Holdings and Zambezi Retail Park and as between the companies and their various creditors and investors (shareholders). Details of the Zambezi scheme are provided hereunder.

Sharemax Investments

Sharemax Investments was mainly focused on promoting unlisted property investment products. Sharemax Investments also fulfilled the role of administrator and property investment manager, although the day to day property management was contracted to external property management companies.

After the appointment of the Statutory Managers and in order to ensure that these functions and responsibilities continue uninterrupted, certain staff, well versed with these functions at Sharemax Investments, were employed by a new company named Frontier Asset Management and Investments (Pty) Ltd (“Frontier”). Frontier relieved Sharemax from all its admin functions.

It was announced recently in a formal press release by the New Boards of Directors (“The Independent Boards”) of the Sharemax promoted companies that Sharemax Investments and its shareholders and directors, namely Mr. Willem Botha and Mr. André Brand, no longer have any interests in or control over Frontier.

The same applies to Sharemax Investments and its shareholders and directors relating to the Sharemax promoted companies. The divesting of Sharemax Investments of any interests in or control over the Sharemax promoted companies occurred by virtue of a formal agreement entered into by the Independent Boards with, inter alia, Sharemax Investments and its directors and shareholders, including Messrs Botha and Brand. In this process, all previous interests of Sharemax Investments and its directors and shareholders have been transferred to a new company, having been established, for this purpose, by the Independent Boards, which new company is under the ownership and management control of the new boards.

The Independent Boards

The Independent Boards of the Sharemax promoted companies consist of Honourable Judge W. Hartzenberg, economist Dawie Roodt, chartered accountant Rudi Badenhorst, Dirk Koekemoer and Dominique Haese.

Frontier

Frontier’s focus is purely asset management, property management and investor administration.

Frontier does not intend to carry out or promote property syndications and will therefore focus on its core skills i.e., asset management, property management and investor administration at market related fees. Frontier will always strive to render an effective and friendly service to its clients.

The current Frontier board of directors consists of Dominique Haese (Managing Director), Dirk Koekemoer, Matthew Osterloh, Corrie van Rooyen, and Nel van Zyl. These individuals were key administrative personnel in the Sharemax Investments stable, responsible for the asset management, property management and investor administration functions, which Sharemax Investments carried out on behalf of the Sharemax promoted companies, and they bring with them a wealth of knowledge, insight and continuity to Frontier.

Communication

We acknowledge that communication may have been less than as expected by investors, since the SARB issued the Directives over the various Sharemax promoted companies. There are however various valid reasons for this.

The Independent Boards respect the necessity for communication and are committed to do so, when accurate reports can be handed down. Numerous, to say the very least, intricate negotiations surrounding the affairs of the Sharemax promoted companies had to be undertaken and concluded and many issues had to be resolved by the Independent Boards, before it was possible to gain SARB approval in regard to many issues, prior to the Independent Boards being able to commence implementing its restructuring plans and, especially, the Schemes of Arrangement process referred to above.

Information Sessions

The Independent Boards of the Sharemax promoted companies noted that their press releases were perceived as lengthy and complicated. In order to assist and inform investors further as to the current status of the affairs of the Sharemax promoted companies and the plans of the Independent Boards, investors will be invited to attend informal information sessions to be called by the Independent Boards of the Sharemax promoted companies, once the schemes of arrangement process has commenced.

Investors will be informed of dates, times and venues via sms. Information will also be posted on the Investors’ Forum website for investors without sms facilities.

At these sessions a designated panel of professionals and directors of both the Frontier and Independent Boards will be available for “question and answer” exchanges.

This panel will aim to further inform investors on the following matters:

• The status of their current investments.

• Implications brought about by the directives of the SARB.

• Reasons for some offers submitted to the Independent Boards not being considered or presented to investors where applicable.

• The process of the proposed Schemes of Arrangement.

• Why it was decided to engage in this process.

• What protection investors will be offered and how it will impact on them and other parties, eg creditors.

• The proposed timelines, content and beneficial effects of the schemes of arrangement, compared to the extreme negative impacts of value destruction and the incurring of unnecessary additional fees, commissions and costs invariably incurred in a liquidation- or judicial management process.

Progress Summary

The Independent Boards have made extensive progress since the beginning of this year, specifically in regard to

• The Villa and Zambezi Retail Park projects;

• various other individual projects ie. Flora Centre, Lydenburg Pick ‘n Pay, The Fern in Dainfern and Whale Rock in Margate. In particular, funding has again started to flow in respect of Flora Centre, and uncompleted work is being completed and improvements are underway;

• most notably, in regard to the shareholders and directors of Sharemax Investments, to the effect that Sharemax Investments, its shareholders and directors have no further control over or interests in the Property Companies. All rights, assets and claims of Sharemax Investments have been transferred away from Sharemax Investments to vest under the control of the Independent Boards as referred to above;

• equally notably, is the fact that all the interests of all external parties in the “Premie Plan” companies and structures have been transferred to the control of the Independent Boards, and are currently owned and administered through the same new company, having been established by the Independent Board, which holds and controls Frontier and its affairs;

• agreements reached to avoid liquidation; and

• settlements reached with creditors and other affected parties.

As Sharemax Investments may no longer support “interest payments”, investors in the various Income Plan syndications are currently receiving actual income generated by their underlying investments. Due to, amongst others, the current economic climate leading to higher vacancies and higher defaults, this income will fluctuate and is in some cases less than in previous years. The economy will dictate.

The directors of Frontier are well aware of the implications and have already appointed JHI as from 1st March, 2011 to primarily address vacancies on specific properties.

We are working for the sole purpose of protecting your investment and unlocking the best possible value for you, the investor. We are also comfortable with the fact that the Independent Boards have the same objectives.

Scheme of Arrangement Process

Zambezi project

To reiterate: The primary aim of the Independent Boards, under the scrutiny and protection of the SARB, is to ensure that the Scheme of Arrangement will be in the interests of all investors, will be implemented as soon as possible and will offer the protection of a lawful future investment structure without any further SARB Directives and presence.

As was stated above, the first Scheme of Arrangement which has already been embarked upon, pertains to the Zambezi project (“the Zambezi scheme”).

The Zambezi scheme provides, inter alia, for the payment of the claims of creditors of Zambezi Holdings and Zambezi Retail Park, in full (100 cents in the Rand). The Zambezi scheme also encapsulates and provides for the payment of the claims of those creditors of Capicol who have amounts outstanding to them by virtue of construction related work having been done by them in respect of the Zambezi Mall.

The Zambezi scheme furthermore provides for the restructuring of the legal relationships between investors and Zambezi Holdings and Zambezi Retail Park, to the extent that the nature of the investments of investors will no longer be in contravention of the Bank’s Act. It is envisaged that the investments of investors will be repaid, in full, over a period of time. The implementation of the Zambezi scheme is subject to certain conditions, and the ultimate sanctioning thereof by the High Court of South Africa and the formal approval of the SARB, followed by the withdrawal of the Directives.

Full details of all the aforesaid matters and/or matters ancillary thereto will, within the next few weeks be formally notified to all relevant creditors and investors by way of a formal notice, which notice will be formally dispatched, in accordance with the terms, conditions and requirements of the Court Order.

The Independent Boards have also commenced with the preparation of documentation in regard to various Schemes of Arrangement, due to follow shortly on the Schemes of Arrangement process underway in regard to the Zambezi project.

The Zambezi scheme was capable of being processed through the Court process following an overall settlement agreement between the relevant companies and the various creditors of Zambezi Holdings and Zambezi Retail Park. One of the matters dealt with in the settlement agreement; and after careful consideration by the new Boards and having taken extensive advice in regard to numerous existing agreements, the new Boards decided not to continue to demand transfer of the Zambezi property to Zambezi Retail Park. The main reason for taking this decision was the existence of a “buy-back” agreement between Zambezi Retail Park and Capicol. In terms of this agreement, Capicol was entitled to buy-back the Zambezi property after 3 (three) years (of which little more than 2 (two) years remain). In practice this meant that Capicol could have, after little more than 2 (two) years, demanded transfer of the Zambezi property back to Capicol at a projected low price. Ultimately, this agreement in the view of the board, would have impacted adversely in its effects on the interests of creditors and investors of Zambezi Holdings and Zambezi Retail Park.

The Zambezi scheme followed extensive negotiations by the Independent Boards and appointed specialist advisors with creditors and interested parties. If the Independent Boards have not reached agreement with all parties concerned, it may well be possible that Zambezi Retail could have been liquidated. Any such liquidation, in the present economic climate, would probably have lead to the Zambezi property being auctioned off at a fraction of its real value, and extensive litigation would have followed, amounting to serious delays, wasted costs and value destruction.

The aforesaid extremely negative effects on the interests of investors have been averted by the scheme of arrangement process in respect of the Zambezi project.

The Villa project

The Independent directors are aware of the plight of the investors in The Villa project. Negotiations regarding a scheme of arrangement in respect of The Villa project have been concluded and a Schemes of Arrangement in regard to The Villa project will be proposed shortly. The aim is to reach a result, similar to that of the Zambezi project. More information will be made available as soon as possible.

The settlement agreement with Capicol will be fully dealt with in the circular due to be dispatched to creditors and shareholders. The Capicol settlement agreement is subject to the sanctioning of the Zambezi scheme, and will be implemented in terms of the processes of the implementation of the Zambezi scheme.

Finally

The Independent Boards express their commitment with the process they have embarked upon and are satisfied that the eventual outcome will deliver the best alternative to all parties concerned. The High Court order in respect of Zambezi is the first concrete step in this process and proof of the board’s commitment.

To improve communication with all investors and financial advisors, an investors’ Forum has been put in place. The committee members will liaise with the directors on a regular basis to share information. A website with a blog facility is also available for communication from the Company under “News Feed” and for informal exchanges by all investors. Please use the facility freely. The website can be accessed through www.frontieram.co.za

Kind regards

Suid-Afrikaanse Reserwebank

Soos u reeds weet, is Sharemax Investments (Edms) Bpk (Sharemax Investments) en die eiendomsbeleggingsmaatskappye wat deur Sharemax Investments gepromoveer was, onder direktief geplaas en statutêre bestuurders was deur die Suid-Afrikaanse Reserwebank (SARB) in terme van die Bankwet op 16 September 2010 aangestel.

Die aanstelling van die statutêre bestuurders het verreikende gevolge vir die Sharemax gepromoveerde maatskappye en vir die beleggers in die verskeie eiendomsbeleggingsprojekte. Detail van die belangrikste gevolge word hieronder voorsien.

Die statutêre bestuurders is onder instruksie om die beleggers (aandeelhouers) se kapitaal te beskerm. Vir hierdie doel het die SARB en die statutêre bestuurders goedkeuring verleen vir die strukturering en voorstelling van ‘n Reëlingskema met betrekking tot die Sharemax gepromoveerde maatskappye ten einde die beste belange van al die aandeelhouers in die maatskappye wat onder direktief is, te dien. Meer besonderhede oor die huidige stand van die Reëlingskema se proses word hieronder voorsien.

Die onafhanklike Rade van direkteure is ook bly om te kan meedeel dat die Hooggeregshof van Suid-Afrika ‘n hofbevel uitgereik het wat aan die onafhanklike Rade toestemming gee om ‘n vergadering van beleggers (aandeelhouers) en krediteure te belê in terme van Afdeling 311 van die Maatskappyewet met betrekking tot Zambezi Holdings en Zambezi Retail Park, vir die hantering van sake tussen die maatskappye, hulle verskeie krediteure en die beleggers (aandeelhouers). Besonderhede van die Zambezi skema word hieronder voorsien.

Sharemax Investments

Sharemax Investments was hoofsaaklik daarop gefokus om ongenoteerde eiendomsbeleggingsprodukte te promoveer. Sharemax Investments het ook die rol van administrateur en eiendomsbeleggingsbestuurder vervul, alhoewel die dag tot dag eiendomsbestuur uitgekontrakteer was na eksterne eiendomsbestuursmaatskappye.

Nadat die statutêre bestuurders aangestel is en om te verseker dat hierdie funksies en verantwoordelikhede ononderbroke voortgaan, is sekere personeel wat ervare was in hierdie funksies by Sharemax Investments, by ‘n nuwe maatskappy, genaamd Frontier Asset Management and Investments (Edms) Bpk (Frontier) in diens geneem. Frontier het al Sharemax se administratiewe funksies oorgeneem.

Soos wat dit onlangs in ‘n formele persvrystelling deur die Nuwe Raad van Direkteure (die onafhanklike Rade) van die Eiendomsmaatskappye bekend gemaak is, het Sharemax Investments en die aandeelhouers en direkteure van Sharemax Investments, naamlik menere Willem Botha en André Brand, geen verdere belang in of kontrole hoegenaamd oor Frontier nie.

Dieselfde is van toepassing op Sharemax Investments, sy direkteure en aandeelhouers so ver as wat dit die Sharemax gepromoveerde maatskappye aangaan. Die oorname van Sharemax Investments se belange of kontrole oor die Sharemax gepromoveerde maatskappye het ontstaan by wyse van ‘n formele ooreenkoms tussen die onafhanklike Rade, met onder andere Sharemax Investments, sy direkteure en sy aandeelhouers, insluitende menere Botha en Brand. In die proses is al die vorige belange van Sharemax Investments, sy direkteure en sy aandeelhouers oorgedra na ‘n nuwe maatskappy wat vir hierdie doel deur die onafhanklike Rade tot stand gebring is. Die nuwe maatskappy is onder die eienaarskap en bestuurskontrole van die nuwe Rade.

Die onafhanklike Rade

Die onafhanklike Rade bestaan uit edelagbare regter W Hartzenberg, ekonoom Dawie Roodt, geoktrooieerde rekenmeester Rudi Badenhorst, Dirk Koekemoer en Dominique Haese.

Frontier

Frontier se fokus is suiwer batebestuur, eiendomsbestuur en beleggersadministrasie.

Frontier beoog nie om eiendomsindikasies te promoveer nie en sal daarom fokus op sy kernvaardighede, naamlik eiendomsbestuur en beleggersadministrasie teen markverwante fooie. Frontier sal altyd daarna streef om effektiewe en vriendelike diens aan sy kliënte te lewer.

Die huidige Frontier raad van direkteure is Dominique Haese (besturende direkteur), Dirk Koekemoer, Matthew Osterloh, Corrie van Rooyen en Nel van Zyl. Hierdie persone was sleutel administratiewe personeel in Sharemax Investments se stal en was verantwoordelik vir die batebestuur-, eiendomsbestuur- en die beleggersadministrasie-funksies wat Sharemax Investments namens die Sharemax gepromoveerde maatskappye uitgevoer het en hulle bring ‘n rykdom van kennis, insig en kontinuïteit saam met hulle na Frontier.

Kommunikasie

Ons erken dat kommunikasie in sommige opsigte beperk was sedert die SARB die direktiewe oor die verskillende Sharemax gepromoveerde maatskappye uitgereik het. Daar is egter verskeie geldige redes daarvoor.

Die onafhanklike Rade besef die noodsaaklikheid vir kommunikasie en is daaraan toegewy om dit so te doen wanneer akkurate verslae bekend gemaak kan word. Verskeie, om die minste daarvan te sê, ingewikkelde onderhandelings oor die sake van die Sharemax gepromoveerde maatskappye moes onderneem en gefinaliseer word en verskeie sake moes deur die onafhanklike Rade opgelos word voordat dit moontlik was om die SARB se goedkeuring oor vele sake te kry en voordat die onafhanklike Rade daartoe in staat was om te begin om sy herstruktureringsplanne en veral, die Reëlingskema waarna hierbo verwys is, te implementeer.

Inligtingsessies

Die onafhanklike Rade van die Sharemax gepromoveerde maatskappye het kennis daarvan geneem dat hulle persverklarings lank en gekompliseerd is. Ten einde die Beleggers by te staan en in te lig oor die huidige stand van sake van die Sharemax gepromoveerde maatskappye en die planne van die onafhanklike Rade, sal Beleggers uitgenooi word om informele inligtingsessies by te woon wat deur die onafhanklike Rade van die Sharemax gepromoveerde maatskappye byeen geroep sal word, sodra die Reëlingskema-proses begin.

Beleggers sal per sms oor die datums, tye en plekke ingelig word. Inligting sal ook op die Beleggers Forum se webtuiste geplaas word, veral vir daardie beleggers wat nie sms geriewe het nie.

By hierdie sessies sal ‘n toegewysde paneel van professionele kundiges en direkteure van beide Frontier en die onafhanklike Rade, beskikbaar wees vir die “vraag en antwoord” sessies.

Die paneel sal poog om die Beleggers verder oor die volgende sake in te lig:

• Die stand van hulle huidige beleggings.

• Implikasies wat deur die direktiewe van die SARB meegebring is.

• Redes waarom sommige aanbiedings wat aan die onafhanklike Rade voorgelê is nie oorweeg of aan die Beleggers, waar van toepassing, voorgehou is nie.

• Die proses van die beoogde Reëlingskema.

• Waarom besluit is om hierdie proses aan te pak.

• Wat dit vir die Beleggers beteken en hoe dit op hulle en ander geaffekteerde partye (krediteure) ‘n invloed sal hê.

• Voorgestelde tydslyn, inhoud en voordele van die Reëlingskema, in vergelyking met die negatiewe uitwerking en waardevernietiging en onnodige bykomende koste, kommissies en onveranderlike koste wat deur ‘n likwidasie- of geregtelike bestuursproses op die hals gehaal sal word.

Opsomming van die vordering

Die onafhanklike Rade het aansienlike vordering gemaak sedert die begin van hierdie jaar, spesifiek in verband met:

• The Villa en Zambezi Retail Park projekte;

• verskeie ander individuele projekte, naamlik Flora Centre, Lydenburg Pick ‘n Pay, The Fern in Dainfern en Whale Rock in Margate. Befondsing, veral in die geval van Flora Centre, het weer begin. Onvoltooide werk is voltooi en verbeterings is onderweg;

• die belangrikste, met betrekking tot die aandeelhouers en direkteure van Sharemax Investments, dat hulle geen verdere beheer oor die belange in die Sharemax gepromoveerde maatskappye het nie en dat alle regte, bates en eise van Sharemax Investments oorgedra is weg van Sharemax Investments af en nou onder die beheer van die onafhanklike Rade is, soos hierbo verwys is;

• net so betekenisvol is die feit dat die belange van alle eksterne partye in die “Premie Plan” maatskappye en strukture oorgedra is vir die beheer daarvan deur die onafhanklike Rade. Dit word tans besit en geadministreer deur dieselfde nuwe maatskappy wat deur die onafhanklike Rade tot stand gebring is wat Frontier besit en Frontier se sake kontroleer;

• ooreenkomste wat bereik is om likwidasie te vermy; en

• reëlings met krediteure en ander geaffekteerde partye.

Aangesien Sharemax Investments nie langer “rente-betalings” kan ondersteun nie, kry beleggers in die verskillende Inkomste Plan sindikasies die werklike inkomste wat deur hulle onderliggende belegging gegenereer word. Weens onder andere, die huidige ekonomiese klimaat wat hoër vakante spasie en hoër wanbetalings veroorsaak, sal die inkomste wissel en in sommige gevalle laer wees as in die vorige jare. Die ekonomie sal dit dikteer.

Die direkteure van Frontier is deeglik bewus van die implikasies hiervan en het reeds vir JHI vanaf 1 Maart 2011 aangestel om primêr aandag te gee aan die vakante spasies van spesifieke eiendomme.

Ons werk vir die enkel oogmerk om u belegging te beskerm en die beste moontlike waarde vir u, die Belegger, te ontsluit. Ons is ook gemaklik met die feit dat die onafhanklike Rade dieselfde oogmerke het.

Reëlingskemaproses

Zambezi projek

Om te herbeklemtoon: Die hoof oogmerk van die onafhanklike Rade, onder toesig en beskerming van die SARB, is om te verseker dat die Reëlingskema in die belang van alle beleggers is, dat dit so gou as moontlik geïmplementeer word en dat dit beskerming sal bied deur ‘n wettige toekomstige beleggingstruktuur sonder enige verdere teenwoordigheid van die SARB en Direktiewe.

Soos hierbo gemeld, het die eerste Reëlingskema waarmee begin is, betrekking op die Zambezi projek (“die Zambezi skema”).

Die Zambezi skema maak onder andere daarvoor voorsiening vir die volle betaling van die eise van die krediteure van Zambezi Holdings en Zambezi Retail Park (100 sente in die Rand). Die Zambezi skema omvat ook en maak voorsiening vir die betaling van die eise van daardie krediteure van Capicol wat uitstaande bedrae het vir die konstruksiewerk wat hulle reeds vir Zambezi Mall gedoen het.

Die Zambezi skema maak verder voorsiening vir die strukturering van die wettige verhoudings tussen beleggers, Zambezi Holdings en Zambezi Retail Park tot die mate dat die aard van die beleggings van die beleggers nie meer ‘n oortreding van die Bankwet sal wees nie. Dit word voorsien dat die beleggings van die beleggers ten volle terugbetaal sal word oor ‘n tydsperiode. Die implementering van die Zambezi skema is onderworpe aan sekere voorwaardes, die uiteindelike bekragtiging deur die Hooggeregshof van Suid-Afrika en die formele goedkeuring van die SARB daarvan, waarna die direktiewe teruggetrek sal word.

Die volle besonderhede van die voorafgaande sake en/of sake wat ondergeskik daaraan is, sal in die volgende aantal weke formeel van kennis gegee word aan alle toepaslike krediteure en beleggers by wyse van ‘n formele kennisgewing, welke kennis formeel uitgestuur sal word in ooreenstemming met die terme, voorwaardes en vereistes van die Hofbevel.

Die onafhanklike Rade het ook begin met die voorbereiding van dokumentasie met betrekking tot verskeie Reëlingskemas, om kort op die hakke te volg van die Reëlingskema-proses wat vir die Zambezi projek onderweg is.

Dit was moontlik om die Zambezi skema deur die Hofproses te neem nadat ‘n volledige reëlingsooreenkoms tussen die relevante maatskappye en die verskeie krediteure van Zambezi Holdings en Zambezi Retail Park bereik is. Een van die sake waarmee in die reëlingsooreenkoms gehandel is en nadat die nuwe Rade dit versigtig beoordeel het nadat uitgebreide advies oor ‘n groot aantal bestaande ooreenkomste verkry is, het die nuwe Rade besluit om nie voort te gaan om die oordrag van die Zambezi eiendom na Zambezi Retail Park af te dwing nie. Die hoofrede vir hierdie besluit was die bestaan van ‘n “terugkoop” ooreenkoms tussen Zambezi Retail Park en Capicol. In terme van hierdie ooreenkoms was Capicol daarop geregtig om die Zambezi eiendom na 3 (drie) jaar, waarvan ‘n bietjie meer as 2 (twee) jaar oorbly, terug te koop. In praktyk beteken dit dat Capicol kon na bietjie meer as 2 (twee) jaar eis dat die Zambezi eiendom weer terug getransporteer moet word na Capicol toe teen ‘n geprojekteerde lae prys. Uiteindelik, volgens die mening van die direkteure, sou dit ‘n negatiewe effek op die belange van die krediteure en die beleggers van Zambezi Holdings en Zambezi Retail Park hê.

Die Zambezi skema is die gevolg van uitgebreide onderhandelings deur die onafhanklike Rade en die spesialis-adviseurs, met die krediteure en belanghebbende partye.

The Villa projek

Die onafhanklike direkteure is bewus van die benarde posisie van die beleggers in die The Villa projek. Onderhandelings oor ‘n Reëlingskema vir The Villa projek is afgesluit en ‘n Reëlingskema vir die The Villa projek sal binnekort voorgestel word. Die oogmerk is om ‘n soortgelyke resultaat te behaal as wat met die Zambezi projek bereik is. Meer inligting sal so gou as moontlik beskikbaar gemaak word.

Die reëlingsooreenkoms met Capicol sal volledig gehanteer word in die dokumente wat aan die krediteure en beleggers uitgestuur gaan word. Die Capicol reëlingsooreenkoms is onderhewig aan die bekragtiging van die Zambezi skema en sal geïmplementeer word in terme van die prosesse van implementering van die Zambezi skema.

Ten slotte

Die Onafhanklike Rade spreek hul verbintenis uit tot die proses waarmee begin is en is tevrede dat die uiteindelike uitkoms die beste alternatief vir al die partye betrokke, sal lewer. Die Hooggeregshof se bevel met betrekking tot Zambezi is die eerste konkrete stap in die proses en dien ook as ‘n bewys van die Raad se toewyding.

Om kommunikasie met al die beleggers en die finansiële adviseurs te verbeter, is ‘n Beleggers Forum in plek geplaas. Die lede van die komitee sal gereeld met die direkteure skakel met die oog daarop om inligting te deel. ‘n Webtuiste met ‘n “blog” fasiliteit is ook beskikbaar vir kommunikasie van die maatskappy onder “News Feed” en vir informele uitruiling van inligting deur alle beleggers. Maak asseblief vrylik gebruik van hierdie fasiliteit. Toegang tot die webtuiste kan verkry word deur www.frontieram.co.za.

Vriendelike groete

As you already know, Sharemax Investments and the Sharemax promoted property investment companies have been placed under statutory management by the South African Reserve Bank (SARB) since 16 September 2010. This originates from a difference in interpretation between the SARB and Sharemax Investments regarding certain clauses in the Banks Act.

The appointment of the statutory managers had far reaching consequences for the company and for the investors in the property investment projects.

Sharemax has always been focussed on fulfilling its role as promoter of unlisted property investment products. It is understandable that the inflow of investments dried up as a result of negative press, and this also lead to the fact that the company’s marketing department could no longer function. Sharemax however also fulfilled the role of administration- and property investment managers, although the day to day property management was contracted to external companies.

In order to ensure that this function and responsibility continues to be carried out, certain staff concerned with these functions at Sharemax have been transferred to a new company named Frontier Asset Management and Investments (Pty) Ltd (Frontier).

The original Sharemax model was based on facilitating the payment of a fixed monthly income to investors in the Income Plans, which had a natural effect on the short term performance of the properties. With the removal of this fixed interest payment which was supplemented by Sharemax on the basis of a loan, as well as the creation of a reserve fund, Frontier is now in a good position to maximise the income stream in the properties. Furthermore Frontier plans to make use of specialist expertise, both internally and externally.

Frontier’s focus is purely property management and investor administration, and it will be extended as such in the private sector, in other words similar functions will also be offered to other investment companies. Frontier does not intend to carry out or promote property syndications and will therefore continually focus on their core skills.

Frontier will always strive to charge market related fees, pass savings on to investors and render an effective and friendly service to our clients.

The current board of directors of Frontier is Dominique Haese, Dirk Koekemoer, Matthew Osterlöh, Corrie van Rooyen, and Nel van Zyl. The above-mentioned individuals were key personnel in the Sharemax set up, responsible for the adminstrative- and property management functions which Sharemax carried out on behalf of the property companies, and they have brought a wealth of insight and continuity along with them to Frontier.

Apart from the usual functions that go hand in hand with property management, this company also handles functions relating to client service, monthly interest payments to investors, and administrative functions regarding general meetings and financial services to the property companies.

Kind regards.