Realestateweb - Picvest investors` precarious position revealed - Investment insights - South Africa's fastest-growing property website
Realestateweb - Picvest investors` precarious position revealed - Investment insights - South Africa's fastest-growing property website
The latest discovery is that investors in the four most recent (and most valuable) syndications - Highveld 19 to 22 - do not own any property. This is a strange situation for a company whose motto is "Where property is the basis of wealth."
There is a large amount of money at stake. The total value of the four syndications is R3.5bn. Most of this amount will have been funded by public investors, with a high concentration of senior citizens.
MY COMMENT
This is not the first time that PIC has been in the news. I find the history lesson at the end of the article most distressing because it appears as if PIC and Sharemax were "born of sin", so to speak. It seems as if DW was dissolved as a result of the managers selling property to the syndications at highly inflated prices and simply re-emerged as PIC and Sharemax. With all the financial and corporate regulation that we have in South Africa, I don't know how the authorities allowed this to happen. It seems as if the two companies merely continued where their predecessor left off. Sharemax has already collapsed and based on the info in this article it seems to be only a matter of time before PIC follows. In both cases, it is virtually certain that investors will not recover their funds.
The latest discovery is that investors in the four most recent (and most valuable) syndications - Highveld 19 to 22 - do not own any property. This is a strange situation for a company whose motto is "Where property is the basis of wealth."
There is a large amount of money at stake. The total value of the four syndications is R3.5bn. Most of this amount will have been funded by public investors, with a high concentration of senior citizens.
MY COMMENT
This is not the first time that PIC has been in the news. I find the history lesson at the end of the article most distressing because it appears as if PIC and Sharemax were "born of sin", so to speak. It seems as if DW was dissolved as a result of the managers selling property to the syndications at highly inflated prices and simply re-emerged as PIC and Sharemax. With all the financial and corporate regulation that we have in South Africa, I don't know how the authorities allowed this to happen. It seems as if the two companies merely continued where their predecessor left off. Sharemax has already collapsed and based on the info in this article it seems to be only a matter of time before PIC follows. In both cases, it is virtually certain that investors will not recover their funds.
Is there nothing anybody can do to help these people to get atleast half their money back ?
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