No changes to Swakop Waterfront deal

A SECOND attempt by the Swakopmund Waterfront Company to amend the original agreement of sale was again turned down by the Swakopmund Town Council at its monthly meeting last week.

In February, Council did not approve three proposed amendments by the developer. The developer’s financiers, Bank Windhoek, again addressed the issue of the alienation and transfer of single residential erven in March.According to a letter from the Municipality’s lawyers, Kinghorn Associates, the amendment proposes that Council consents to the alienation of the residential erven prior to the improvement thereof by the developer.The reason for this is that the developer intends to finance the erven by means of the sales of the erven coupled with the building contracts.The developer will therefore improve the respective erf and the buyer will pay the building costs in instalments commensurate with progress.The dilemma, however, is that very few buyers are apparently so-called cash purchasers and the majority need to finance the purchase and building transaction with bank loans.The banks, in turn, are normally not prepared to advance moneys prior to the registration of bonds in their favour.The buyer would therefore require the transfer of the erf into his name, which would require the Municipality to consent to the alienation of erven prior to the improvement thereof by the developer.Kinghorn points out that Council has since the start of the transaction done its utmost to accommodate the developer’s requests and by doing so has compromised its security position “round after round”.Council thus reaffirmed its position that no alienation and transfer of single residential erven would be allowed, unless and until the internal services had been provided and improvements in accordance with the approved building plans have been erected.The required completion certificate in terms of the agreement of sale also needs to be issued.Basil Smit, partner in one of the two shareholders of the Waterfront Company, told The Namibian recently that 46 contracts had been finalised with individual buyers.He said building would only start once 80 percent guarantees could be delivered to the bank.The developer’s financiers, Bank Windhoek, again addressed the issue of the alienation and transfer of single residential erven in March.According to a letter from the Municipality’s lawyers, Kinghorn Associates, the amendment proposes that Council consents to the alienation of the residential erven prior to the improvement thereof by the developer.The reason for this is that the developer intends to finance the erven by means of the sales of the erven coupled with the building contracts.The developer will therefore improve the respective erf and the buyer will pay the building costs in instalments commensurate with progress.The dilemma, however, is that very few buyers are apparently so-called cash purchasers and the majority need to finance the purchase and building transaction with bank loans.The banks, in turn, are normally not prepared to advance moneys prior to the registration of bonds in their favour.The buyer would therefore require the transfer of the erf into his name, which would require the Municipality to consent to the alienation of erven prior to the improvement thereof by the developer.Kinghorn points out that Council has since the start of the transaction done its utmost to accommodate the developer’s requests and by doing so has compromised its security position “round after round”.Council thus reaffirmed its position that no alienation and transfer of single residential erven would be allowed, unless and until the internal services had been provided and improvements in accordance with the approved building plans have been erected.The required completion certificate in terms of the agreement of sale also needs to be issued.Basil Smit, partner in one of the two shareholders of the Waterfront Company, told The Namibian recently that 46 contracts had been finalised with individual buyers.He said building would only start once 80 percent guarantees could be delivered to the bank.