MIRA
INFORM REPORT
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Report Date : |
04.09.2007 |
IDENTIFICATION DETAILS
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Name : |
INDAWO INVESTMENT TRUST |
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Registered Office : |
No |
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Country : |
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Date of Incorporation : |
August 2006 |
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Legal Form : |
Trust |
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Line of Business : |
Miscellaneous activities. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Status : |
New Company |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
COMPANY NAME
INDAWO INVESTMENT TRUST
PHYSICAL ADDRESS
No
Office 122
New Town Centre
UMHLANGA ROCKS
Kwa-Zulu
POSTAL ADDRESS
GATEWAY
4321
TELEPHONE NUMBER: 031 566 5590
FAX NUMBER:
031 566 5560
TRUSTEES
MUKHTAR AHMED ISMAIL
SHAIK DAWOOD
ABDUL MAJEED DAWOOD
(Brother)
ANWAR DAWOOD
(Brother)
ASSOCIATE /
SUBSIDIARY COMPANIES
MULTIMANIA INVESTMENT (PTY) LTD
And other subsidiary companies, the names of which were not forthcoming.
BANKERS
ABSA BANK, KZN Business Centre. It was stated that the subject does not require overdraft facilities as credit balances are maintained at the Bank.
DATE REGISTERED
August 2006
Trust Number: 871/2006
MAJOR OPERATION
It was stated by respondents that the subject is a holding company for its subsidiaries which are property developers.
The following details on the developments of the subsidiaries of the subject were extracted from a local publication:
Also on the drawing boards for the north of
On Umhlanga’s Ilala Ridge overlooking the sea, is a sprawling R254 million residential development called Villamor, consisting of 16 free-standing homes and 46 apartments. Planning approval is imminent and the project is expected to start soon.
The 18.2ha gated Desainagar residential estate five minutes from the beach and just 15km from the Umhlanga Ridge town centre. The estate will consist of 125 residential units valued at about R300 million as well as six apartment blocks consisting of 289 units, valued at an additional R450 million. The estate will have its own pool and entertainment area and more than half the units will overlook the sea.
A planned four star hotel and 435 luxury apartments in the
An upmarket mixed-use residential and office block on
stylish
For the first time the company is setting its sights south
of
Already under construction, a Floridian-style residential development in the heart of Shelly Beach and close to the beach. Clean white buildings set in lush tropical gardens are being developed in five phases, each phase with its own swimming pool, with projected sales of R250 million.
Three 20-storey tower blocks with 380 apartments right on the main beachfront of Amanzimtoti. Every department will have uninterrupted sea views. Indawo expect project sales to be in the region of R460 million.
A 180-unit beachfront development at Umtentwini set in landscaped gardens and bordering the lagoon with access to braai areas, tennis and squash courts, fishing, canoeing and associated water sports. The development, which will have stunning views and be secure, has projected sales valued at R250 million.
Overlooking the main beach at St Michaels, a R135 million 65-unit apartment based on French architectural style. St Michaels-Le Bijou. One, two and three-bedroom apartments with spacious living space and wide verandas will have their own storerooms and access-controlled basement parking.
Add these developments to the already sizeable portfolio, which includes the multi-use R87.5 million development Horizon View and the R210 million Ridgeton Towers, side by side in Aurora Drive in the Umhlanga Ridge new town centre, R60 million Point Bastille on the canal at the new Point waterfront and the R30 million Toti towers commercial development at Amanzimtoti – and you can see the company has made sensational progress in a few short years.
Indawo’s successful model is to purchase the land for cash, then use the land as security for development finance from commercial banks and then pre-sell the units off-plan.
Dawood, who says he eats, sleeps and dreams property, has no doubt the property market will continue to be strong. “But most important to success,” he says, “is to uphold what my dad once told me and that is to always keep your mind and your heart clean. It’s the best advice I’ve had and I’ve carried this thought with me through my life.”
MAJOR SUPPLIERS
The subject is not a general credit seeker.
MAJOR CUSTOMERS OR
BUSINESS SECTORS
Associate companies.
AREA OF DISTRIBUTION
AND SELLING
Kwa-Zulu
EXPORTS
None
TOTAL EMPLOYEES
10
OTHER PREMISES
None
OWNED OR LEASED
The premises are reported to be owned by the associate group Trust.
Full financial information was not forthcoming from respondents at the subject and outside authorities were unable to assist in this regard.
AUDITORS
MUKHTAR DAWOOD
YEAR END
FEBRUARY
INSURANCE BROKERS
ANTON DORRASAMY
TRADE REFERENCES
Not Applicable
COMMENTS
This is a relatively
new business. The subsidiaries are apparently developing valuable and lucrative
properties but in the absence of financial information and a payment pattern on
the subject we would prefer to see dealings with the subject on a letter of
credit basis.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)