What your rights are with 'prescribed debt'
Is a debt collector hounding you via letter, e-mail or SMS to pay a very old debt you can barely recall? If so, you need to get clued up on the term "prescribed debt".
In short, according to the Prescription Act, if in the past three years you have not made any payment towards settling a debt, acknowledged owing the debt in any way - including over the phone, agreed to pay it or been summonsed in respect of it, it has prescribed, and you can raise this as a defence when asked to pay it.
This excludes mortgage debt, taxes and any staterelated debt such as a television licence.
But here's the thing: it is perfectly legal for a debt collector or attorney to demand payment from a debtor for a prescribed debt, and if you succumb to the pressure and pay it, you can't raise the defence of prescription afterwards.
In other words, if you don't realise the debt you're being asked to pay has prescribed, and you pay it, you lose.
The idea was to compel creditors and their collecting agents to collect money owed to them within a defined period, to protect consumers from unscrupulous creditors and/or collectors who intentionally delay the recovery of their debt so that it accumulates massive amounts of interest and costs.
Of course, the debt-collecting industry argues that the act was never designed to give people an excuse not to pay their debts, as this would be morally wrong.
There is some merit in that argument, of course, but what's also morally wrong is for a collector to contact a consumer many years after an alleged default and demand that they pay a sum which they refuse to substantiate.
A firm notorious for doing just this is JM Attorneys of Randburg, which continues to hound former Health & Racquet Club members for payment of subscriptions allegedly owed to the group, which went into liquidation about 10 years ago.
Many debt collectors go into "pay up" overdrive in November and December, presumably hoping to snare a share of their targets' end-ofyear bonuses.
I've heard from three former Health & Racquet Club members in recent weeks, all of whom have received fresh demands from JM Attorneys on behalf of the "client".
Dylan Mcgarry was 16 in 1999 when he was given a limited free membership to H&R as a thank you for recruiting other members.
He was under-age at the time and could therefore not have signed a legal contract. Even if he had done so, and then failed to pay, that debt would have prescribed many years ago.
Still, JM Attorneys is demanding payment, based on a contract which is, in fact, a "physical activity and readiness questionnaire" which McGarry was asked to sign.
Now 29, he received a letter from the firm, dated October 17, headed "Negative Impact on your Future Job".
It reads: "Did you know that if you are listed with the major credit bureaus, your chances of getting employment in the future will be affected?
"You are making this difficult for yourself if you do not pay your Health & Racquet Club debt on or before 31 October, 2011."
His mother, Kathy Bennett, told Consumerwatch the first letter from JM Attorneys came on ominously bright red paper, in January last year, followed by another four since.
"And they are adding R37.34 to the alleged debt for the cost of every letter," Bennett said. The latest sum being demanded is a few cents less than R2 000.
"To receive that first red letter was horrifying, firstly that it was so long ago, and especially knowing that there was no debt in the first place."
The implied threat of blacklisting had rattled both of them, Bennett said, "as Dylan has studied and worked extremely hard at getting his PHD, on scholarships".
In another case, Michael Maphutse of Joburg paid his H&R debit order for 24 months, despite visiting the Watermeyer branch just twice, and never heard from the club after that. Then the company liquidated.
His first demand for payment from JM Attorneys came in 2006, and his most recent communication was via SMS on November 4.
Despite asking for a copy of his H&R contract and proof of arrears in two e-mails in 2006, he did not get a response.
Then this month he received a fax putting the burden of proof on him - he was asked to provide a host of documents as proof of the cancelled contract, acceptance of such cancellation, an affidavit and more in order to prove his claim not to owe any money.
I wrote to JM Attorneys' managing director, Gert Visser, setting out these two cases, plus a third, and asking, among other things, why the Mcgarry file had not been closed given that no contract existed in the first place, and why the firm continued to pursue consumers for payment when they had raised prescription as a defence, and the firm was unable to prove that this was not a valid defence.
I was asked for reference numbers for all three cases but Visser began his written response by saying that "we" would not comment on each case "as there are attorney/ client confidentiality requirements that we must not violate".
"The law of prescription was… never designed to provide a mechanism to attempt to evade liability and we are really not sure why you are suggesting that merely after an elapse of time somebody may attempt to evade payments of debt and why you seem to suggest that this is proper behaviour when we surely all know that a person must honour their obligations," Visser said.
He said that any threat of "blacklisting" was contrary to company policies "and we absolutely do not do so".
"It may be your understanding was incorrect and that you inadvertently thought that we might give adverse information to credit bureaus," he said.
Well, yes, when Mcgarry got that letter last month, headed "Negative Impact on your Future Job", followed by the words "Did you know that if you are listed with the major credit bureaus, your chances of getting employment in the future will be affected?", he might have "inadvertently" thought the firm was threatening to have his credit record "blacklisted".
Incidentally, according to the Credit Ombud, prescribed debt may not be listed on a person's credit record.
I'm not suggesting people should avoid paying their debt. But this is precisely the sort of "very old debt" scenario the Prescription Act was designed to protect consumers from.
In any event, the onus is on the person demanding the money to prove that it is owed, and to substantiate the amount being demanded, which has not happened in these cases.
I'd encourage consumers to use their bonuses to settle their current outstanding debts before spending it.
Wendy Knowler
Pretoria News
About Me
- Gareth Shepperson
- Pretoria, Gauteng Province, South Africa
- Property Lawyer & Conveyancer ... Lover of Life in general!! www.prop-law.co.za In this Blog we have always brought you the latest PROPERTY NEWS but now we will also bring you a Q & A SECTION, where we answer readers questions. Please e-mail your questions to gareth@propertylaw.onmicrosoft.com (The information contained in this Blog does NOT constitute legal advice. If you require legal advice, you are very welcome to contact me.)
23 November 2011
'Will the Consumer Protection Act make the voetstoots clause redundant?'
'Will the Consumer Protection Act make the voetstoots clause redundant?'
With the Consumer Protection Act now making it even more essential that the seller of a home declare openly any defects of which he is aware, it has been said by some estate agents that the voetstoots clause is now becoming redundant - the repair of almost any defect in the home discovered after the transfer of the property can, it has been said, now be claimed for.
Not so, says Anton du Plessis, CEO of the Cape Peninsula central southern suburb estate agency, Vineyard Estates.
Quoting a recent High Court case (Banda and Another vs van der Spuy and Another), du Plessis said this reinforced the voetstoots principle that, if the seller was not aware of the defect, he cannot after the sale be held responsible for it.
"In the case referred to," said du Plessis, "the van der Spuys sold their home to a Mr Banda. About one year prior to the sale, severe storms had damaged the roof and caused leaking. The insurer then paid for comprehensive repairs to be carried out and these were guaranteed for six months by the thatcher. The van der Spuys also informed Mr Banda of this and of the six month warranty.
"Subsequently, heavy winter rains (the home is in Villiersdorp, Cape) fell and the roof again leaked."
At the subsequent trial Mr Banda produced a specialist witness with extensive thatching experience who testified that the problem arose from a latent defect. This was that the 26 to 35 degree pitch of the roof was not steep enough to make the thatch efficient. It had, he said, to have a 45 degree pitch.
The judge, after listening to the technical backup to this statement, accepted its validity - but, he said, the sellers and their agent themselves being unaware of this, could not now be penalised on account of it - and, as the house had been sold voetstoots, the buyer had no claim on them. The sellers had been aware of the defects, had had them repaired and could therefore rightly consider themselves in the clear.
Du Plessis said that it had to be acknowledged that throughout SA legal history, sellers have "hidden behind" the voetstoots clause but in this case only an expert would have recognised the defect and the seller could not be blamed for it.
The voetstoots clause, therefore, could be enforced.
"What is interesting," he said, "is that I would guess that a significant percentage of thatched roofs in South Africa (perhaps 15%) do not have 45 degree roofs but most get away with it because they are not in high rainfall areas. House buyers looking at thatched homes should check the pitch and sellers from now on are advised to warn buyers in advance if the pitch is possibly inadequate."
Trudie Broekmann, a director of Gunstons Attorneys in Tokai, added that if the house was sold subsequent to the CPA becoming effective on 31st March 2011, the estate agent might well have been regarded by the court as a supplier of the property and would have been liable for the defect. Agents, she said, will not, like sellers, be protected by the voetstoots clause.
Vineyard Estates Press Release
With the Consumer Protection Act now making it even more essential that the seller of a home declare openly any defects of which he is aware, it has been said by some estate agents that the voetstoots clause is now becoming redundant - the repair of almost any defect in the home discovered after the transfer of the property can, it has been said, now be claimed for.
Not so, says Anton du Plessis, CEO of the Cape Peninsula central southern suburb estate agency, Vineyard Estates.
Quoting a recent High Court case (Banda and Another vs van der Spuy and Another), du Plessis said this reinforced the voetstoots principle that, if the seller was not aware of the defect, he cannot after the sale be held responsible for it.
"In the case referred to," said du Plessis, "the van der Spuys sold their home to a Mr Banda. About one year prior to the sale, severe storms had damaged the roof and caused leaking. The insurer then paid for comprehensive repairs to be carried out and these were guaranteed for six months by the thatcher. The van der Spuys also informed Mr Banda of this and of the six month warranty.
"Subsequently, heavy winter rains (the home is in Villiersdorp, Cape) fell and the roof again leaked."
At the subsequent trial Mr Banda produced a specialist witness with extensive thatching experience who testified that the problem arose from a latent defect. This was that the 26 to 35 degree pitch of the roof was not steep enough to make the thatch efficient. It had, he said, to have a 45 degree pitch.
The judge, after listening to the technical backup to this statement, accepted its validity - but, he said, the sellers and their agent themselves being unaware of this, could not now be penalised on account of it - and, as the house had been sold voetstoots, the buyer had no claim on them. The sellers had been aware of the defects, had had them repaired and could therefore rightly consider themselves in the clear.
Du Plessis said that it had to be acknowledged that throughout SA legal history, sellers have "hidden behind" the voetstoots clause but in this case only an expert would have recognised the defect and the seller could not be blamed for it.
The voetstoots clause, therefore, could be enforced.
"What is interesting," he said, "is that I would guess that a significant percentage of thatched roofs in South Africa (perhaps 15%) do not have 45 degree roofs but most get away with it because they are not in high rainfall areas. House buyers looking at thatched homes should check the pitch and sellers from now on are advised to warn buyers in advance if the pitch is possibly inadequate."
Trudie Broekmann, a director of Gunstons Attorneys in Tokai, added that if the house was sold subsequent to the CPA becoming effective on 31st March 2011, the estate agent might well have been regarded by the court as a supplier of the property and would have been liable for the defect. Agents, she said, will not, like sellers, be protected by the voetstoots clause.
Vineyard Estates Press Release
22 November 2011
The secret to Vukile’s success
Cost management the secret to Vukile’s success
Property Fund plans on growing fund more aggressively.
Vukile Property Fund CEO, Laurence Rapp, says the company’s recent performance of net rental growth can largely be attributed to cost management generally and lowering the cost of funding. The company on Monday reported a 7.5% increase in its interim distribution to 54.31 cents per linked unit.
It says plans are underway to grow the fund more aggressively. This will include seeking opportunities in the Western Cape. Rapp says in Namibia Vukile’s properties in Rundu and Katima Mulilo are performing exceptionally well and now constitute 7% of the JSE-listed company’s portfolio.
The announced acquisition of 20 properties from Sanlam forms part of Vukile’s growth path and will add around R1.5bn or 25% to the value of its portfolio. Rapp says while it remains committed to being a diversified fund, the emphasis will be on retail.
“To this end, we are exploring acquisitions of retail centres as well as joint venture development opportunities in the retail environment that would complement our existing portfolio make-up. We also continue to believe in the strength and growth of retail in the emerging market and, based on the performance of our current retail assets, we will focus our expansion on this market segment,” Rapp said.
With regards to the Sanlam acquisition, Vukile will embark on several road shows in March 2012 to raise equity and debt for the deal.
Rapp says Vukile’s pipeline will also increasingly be exposed to office space. On the retail side, Vukile will be looking at the lower LSM retail in both rural and urban areas. This does not mean however, that it will not consider opportunities serving higher income groups should they present themselves.
“We will acquire some retail assets in the portfolio, notably Durban’s The Workshop, but the office assets being acquired will enhance the overall quality of our office portfolio as well,” Rapp says.
Property Fund plans on growing fund more aggressively.
Vukile Property Fund CEO, Laurence Rapp, says the company’s recent performance of net rental growth can largely be attributed to cost management generally and lowering the cost of funding. The company on Monday reported a 7.5% increase in its interim distribution to 54.31 cents per linked unit.
It says plans are underway to grow the fund more aggressively. This will include seeking opportunities in the Western Cape. Rapp says in Namibia Vukile’s properties in Rundu and Katima Mulilo are performing exceptionally well and now constitute 7% of the JSE-listed company’s portfolio.
The announced acquisition of 20 properties from Sanlam forms part of Vukile’s growth path and will add around R1.5bn or 25% to the value of its portfolio. Rapp says while it remains committed to being a diversified fund, the emphasis will be on retail.
“To this end, we are exploring acquisitions of retail centres as well as joint venture development opportunities in the retail environment that would complement our existing portfolio make-up. We also continue to believe in the strength and growth of retail in the emerging market and, based on the performance of our current retail assets, we will focus our expansion on this market segment,” Rapp said.
With regards to the Sanlam acquisition, Vukile will embark on several road shows in March 2012 to raise equity and debt for the deal.
Rapp says Vukile’s pipeline will also increasingly be exposed to office space. On the retail side, Vukile will be looking at the lower LSM retail in both rural and urban areas. This does not mean however, that it will not consider opportunities serving higher income groups should they present themselves.
“We will acquire some retail assets in the portfolio, notably Durban’s The Workshop, but the office assets being acquired will enhance the overall quality of our office portfolio as well,” Rapp says.
21 November 2011
Bishopscourt mansion a bargain at R98m
Bishopscourt mansion a bargain at R98m
The price includes imported interlined silk curtaining worth R5m.
JOHANNESBURG – A sprawling 3 500m² mansion in Cape Town’s exclusive Bishopscourt suburb has gone onto the market with the asking price set at a cool R98m. The price includes imported silk interlined curtaining worth R5m and some of the furniture.
Estate agent Ingrid McFarlane of Seeff Properties says the current owner is a well-known South African mining magnate who wants to scale down. Asked about the likely profile of a prospective buyer, McFarlane said it was likely to be a “black diamond”, referring to South Africa’s and Africa’s growing affluent and influential black community.
Interest is likely to come from the who’s who of SA’s mining or business sector, someone “who loves entertaining and enjoys a lavish lifestyle”.
McFarlane says the property is akin to owning a small three acre estate in the middle of Bishopscourt. An average three to four bedroomed house usually comprises 800m². The land alone is estimated to be worth in excess or R43m.
Seeff’s Andy Todd says the property is surrounded by some of the most valuable real estate on the African continent with houses in the vicinity fetching anything from R40m and upwards.
Now, what can you expect to get for R98m? The basics include six massive en suite bedrooms including dressing rooms. The main suite includes a separate lounge with a fireplace and his and hers dressing rooms and bathrooms. McFarlane says the house consists of several other large rooms that can be converted into at least four additional suites.
The Canterbury Drive mansion includes an entrance court leading into a double volume entrance hall with a dual staircase that connects the living spaces dotted with priceless art and Persian carpets.
The entertainment area sports an opulent lounge and a formal 24-seater dining room for large scale entertaining. A central bar area is flanked by a billiard room, a cinema, a large kitchen with a separate scullery, an open plan family room and a casual dining area.
Other features the living section boasts include a cigar lounge in the basement with a wine cellar and tasting room. Here you will also find a large office with an adjoining lounge cum library and separate access for guests and dignitaries.
The sprawling exterior includes a large covered terrace leading onto a multi-million rand landscaped garden, swimming pool, tennis court and pavilion.
Of course, you will have to set aside at least R30 000 a month to maintain the property. This is the unenviable task of the “estate manager” who resides on the property in a separate two-bedroomed home.
McFarlane says the mansion was built in 2008.
The price includes imported interlined silk curtaining worth R5m.
JOHANNESBURG – A sprawling 3 500m² mansion in Cape Town’s exclusive Bishopscourt suburb has gone onto the market with the asking price set at a cool R98m. The price includes imported silk interlined curtaining worth R5m and some of the furniture.
Estate agent Ingrid McFarlane of Seeff Properties says the current owner is a well-known South African mining magnate who wants to scale down. Asked about the likely profile of a prospective buyer, McFarlane said it was likely to be a “black diamond”, referring to South Africa’s and Africa’s growing affluent and influential black community.
Interest is likely to come from the who’s who of SA’s mining or business sector, someone “who loves entertaining and enjoys a lavish lifestyle”.
McFarlane says the property is akin to owning a small three acre estate in the middle of Bishopscourt. An average three to four bedroomed house usually comprises 800m². The land alone is estimated to be worth in excess or R43m.
Seeff’s Andy Todd says the property is surrounded by some of the most valuable real estate on the African continent with houses in the vicinity fetching anything from R40m and upwards.
Now, what can you expect to get for R98m? The basics include six massive en suite bedrooms including dressing rooms. The main suite includes a separate lounge with a fireplace and his and hers dressing rooms and bathrooms. McFarlane says the house consists of several other large rooms that can be converted into at least four additional suites.
The Canterbury Drive mansion includes an entrance court leading into a double volume entrance hall with a dual staircase that connects the living spaces dotted with priceless art and Persian carpets.
The entertainment area sports an opulent lounge and a formal 24-seater dining room for large scale entertaining. A central bar area is flanked by a billiard room, a cinema, a large kitchen with a separate scullery, an open plan family room and a casual dining area.
Other features the living section boasts include a cigar lounge in the basement with a wine cellar and tasting room. Here you will also find a large office with an adjoining lounge cum library and separate access for guests and dignitaries.
The sprawling exterior includes a large covered terrace leading onto a multi-million rand landscaped garden, swimming pool, tennis court and pavilion.
Of course, you will have to set aside at least R30 000 a month to maintain the property. This is the unenviable task of the “estate manager” who resides on the property in a separate two-bedroomed home.
McFarlane says the mansion was built in 2008.
Gradual recovery for listed property
Gradual recovery for listed property
Residential and commercial real estate to fall a further 10%
WITH investor demand being hampered by enduring economic challenges and stalled global growth, Auction Alliance is predicting a gradual and patchy recovery for the local commercial property sector over coming months, with certain segments expected to perform better than others.
The values of both residential and commercial real estate assets in SA are expected to fall by a further 10% over the next 12 months according to Auction Alliance.
The auctioneer warned investors considering ploughing their money into property to be thorough when carrying out due diligence.
“Three years into the recession, the question on the status of the commercial property sector’s recovery is difficult to answer, with recovery appearing to have stalled significantly in recent months in the face of renewed economic fears”, said Rael Levitt, CEO of Auction Alliance.
According to a recently released report by PricewaterhouseCoopers in the US and the Urban Land Institute, entitled Emerging Trends in Real Estate 2012: “The return landscape for 2012 presents a mixed bag, and all depends on where and when investors bought, the amount of property leverage employed, and asset quality.”
The report warned that: “As markets creep back in 2012, investors can no longer just ride the capital tide of rate compression, but instead must pick projects well and execute on management.”
Another important factor was the performance of local municipalities when considering commercial property investment. Redefine one of SA’s largest listed property groups, had already decided to stop investing in poorly run municipalities and halted further improvements on their existing properties in such areas.
“SA poses its own challenges to the property investor with rising costs and an increased risk of stagflation in the economy, as price pressures rise and economic recovery remains sluggish. Both buyers and sellers need to realign their expectations of the property sector, and face up to the tough reality of today’s market”, said Levitt.
Residential and commercial real estate to fall a further 10%
WITH investor demand being hampered by enduring economic challenges and stalled global growth, Auction Alliance is predicting a gradual and patchy recovery for the local commercial property sector over coming months, with certain segments expected to perform better than others.
The values of both residential and commercial real estate assets in SA are expected to fall by a further 10% over the next 12 months according to Auction Alliance.
The auctioneer warned investors considering ploughing their money into property to be thorough when carrying out due diligence.
“Three years into the recession, the question on the status of the commercial property sector’s recovery is difficult to answer, with recovery appearing to have stalled significantly in recent months in the face of renewed economic fears”, said Rael Levitt, CEO of Auction Alliance.
According to a recently released report by PricewaterhouseCoopers in the US and the Urban Land Institute, entitled Emerging Trends in Real Estate 2012: “The return landscape for 2012 presents a mixed bag, and all depends on where and when investors bought, the amount of property leverage employed, and asset quality.”
The report warned that: “As markets creep back in 2012, investors can no longer just ride the capital tide of rate compression, but instead must pick projects well and execute on management.”
Another important factor was the performance of local municipalities when considering commercial property investment. Redefine one of SA’s largest listed property groups, had already decided to stop investing in poorly run municipalities and halted further improvements on their existing properties in such areas.
“SA poses its own challenges to the property investor with rising costs and an increased risk of stagflation in the economy, as price pressures rise and economic recovery remains sluggish. Both buyers and sellers need to realign their expectations of the property sector, and face up to the tough reality of today’s market”, said Levitt.
Kirsh is king of London’s castle
Kirsh is king of London’s castle
Says £285m purchase of Natwest Tower is a great investment.
Natie Kirsh, the London-based SA billionaire, today confirmed that his £285m bid for one of London’s tallest buildings, Tower 42, has been successful.
Speaking to Moneyweb, Kirsh said: “It’s in the documentation phase, which means all the papers still have to be signed but we have secured it. The owners received 12 offers and whittled it down to three. They interviewed me to make sure I could finance the deal. They were nervous, having been let down in the past but after the interview they confirmed we were the guys.”
Kirsh is one of SA’s richest men. His biggest asset is Jetro, a successful cash and carry chain in the US styled after Metro Cash of SA. He is the sole owner. He said he will not be selling a single share in Jetro to fund the deal but its cash flow would make it easy to pay.
Asked if such a large investment in a single property was not risky at the present juncture of the UK and world economy, he said: “No. It is a fantastic building in the heart of the City. It is fully let with 300 tenants and a waiting list of corporates wanting to get it. It was built by a bank, not by a property developer. The bank was building its own head office and wasn’t fussy about lettable space. Every part of the building has huge window space. It is built in the shape of a 3-leaf clover. Each floor is 3 000 square feet.”
According to Wikipedia, Tower 42, originally named Natwest Tower, was for 30 years London’s highest building. Now it ranks fifth and second in the city. The 42-storey building is 183m (600 feet) high. It has an automated mail train and external window washing. The building was extensively damaged in the IRA’s Bishopsgate bombing.
Kirsh says even at the £285m price tag, the rental yield starts off at 7%. He intends to gear his purchase and thus to get the yield to 11%.
“With everyone printing money, inflation is not going away. If you factor in inflation, the yield could quickly exceed 20%.”
Kirsh owns a city block in Rivonia Rd, a stone’s throw from Sandton City. Did he not consider building a skyscraper there, as has been speculated?
“You tell me where SA is going. Can the government make a foreign investor comfortable?
“Right now, I feel disinclined at my age (79) to start a major development. As they say, a shroud doesn’t have pockets. I have one idea for the site, which is not commercial – a sort of museum to reflect the contribution to the SA economy made by immigrants over the years.
“I would like to ask other rich South Africans, the Ruperts, the Oppenheimers to help develop this, possibly in association with the university (Wits is Kirsh’s alma mater).
“It would be a living thing with lecture halls and so on. I am coming down there soon for a couple of months and will see how they respond.”
Says £285m purchase of Natwest Tower is a great investment.
Natie Kirsh, the London-based SA billionaire, today confirmed that his £285m bid for one of London’s tallest buildings, Tower 42, has been successful.
Speaking to Moneyweb, Kirsh said: “It’s in the documentation phase, which means all the papers still have to be signed but we have secured it. The owners received 12 offers and whittled it down to three. They interviewed me to make sure I could finance the deal. They were nervous, having been let down in the past but after the interview they confirmed we were the guys.”
Kirsh is one of SA’s richest men. His biggest asset is Jetro, a successful cash and carry chain in the US styled after Metro Cash of SA. He is the sole owner. He said he will not be selling a single share in Jetro to fund the deal but its cash flow would make it easy to pay.
Asked if such a large investment in a single property was not risky at the present juncture of the UK and world economy, he said: “No. It is a fantastic building in the heart of the City. It is fully let with 300 tenants and a waiting list of corporates wanting to get it. It was built by a bank, not by a property developer. The bank was building its own head office and wasn’t fussy about lettable space. Every part of the building has huge window space. It is built in the shape of a 3-leaf clover. Each floor is 3 000 square feet.”
According to Wikipedia, Tower 42, originally named Natwest Tower, was for 30 years London’s highest building. Now it ranks fifth and second in the city. The 42-storey building is 183m (600 feet) high. It has an automated mail train and external window washing. The building was extensively damaged in the IRA’s Bishopsgate bombing.
Kirsh says even at the £285m price tag, the rental yield starts off at 7%. He intends to gear his purchase and thus to get the yield to 11%.
“With everyone printing money, inflation is not going away. If you factor in inflation, the yield could quickly exceed 20%.”
Kirsh owns a city block in Rivonia Rd, a stone’s throw from Sandton City. Did he not consider building a skyscraper there, as has been speculated?
“You tell me where SA is going. Can the government make a foreign investor comfortable?
“Right now, I feel disinclined at my age (79) to start a major development. As they say, a shroud doesn’t have pockets. I have one idea for the site, which is not commercial – a sort of museum to reflect the contribution to the SA economy made by immigrants over the years.
“I would like to ask other rich South Africans, the Ruperts, the Oppenheimers to help develop this, possibly in association with the university (Wits is Kirsh’s alma mater).
“It would be a living thing with lecture halls and so on. I am coming down there soon for a couple of months and will see how they respond.”
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