Leisure property development group might cost South Africa’s Absa Bank even more

By bne IntelliNews January 19, 2010
Aleisure property development group may cost South Africas Absa Bank even morethan the ZAR 1bn-plus it already has. Absa owns nearly 40% of Pinnacle Point,having inadvertently inherited 21% late in 2008, when single-stock futurestraders defaulted on payments. Business Times wrote that the bank has sincepumped ZAR 125mn more into the group and is now disputing a further ZAR 95mn.Pinnacles interim results for the six months to Aug-end show a loss of ZAR64mn plus ZAR 35mn in one-off restructuring costs and a secondary listing in Nigeria.Pinnacle says 400ha of land in Lagos, Nigeria, is anasset, but has not produced title deeds or a required environmental impactassessment for its development. Absa has given Pinnacle until Jan-end toproduce the documentation.

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