Broll loses deal after Bonatla spat

Posted On Friday, 21 February 2003 02:00 Published by
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THE spat within Bonatla Property Holdings did not only cost Catalyst a three-year asset management contract but spilled over to Catalyst subsidiary Broll Properties.

THE spat within Bonatla Property Holdings did not only cost Catalyst a three-year asset management contract but spilled over to Catalyst subsidiary Broll Properties.

Broll has lost its three-year property management contract for Bonatla's property assets, valued at more than R600m.

Bonatla said this week its asset management contract with Catalyst had been renegotiated and set on a short-term basis.

This means that the asset management contract, which could have lasted for a further three years, could be cancelled at any point with a month's notice.

This also applies to Broll.

This was all due to a disagreement over Bonatla's strategic direction between Catalyst and a group of Bonatla shareholders led by founder Niki Vontas.

The announcement also carried the resignation of two Catalyst executives, Jonathan Broll and Royden du Plooy, from the board of Bonatla.

Du Plooy said yesterday their appointment to the board of Bonatla was tied to the asset management contract. When the contract was renegotiated they had to resign.

Based on common practice, Catalyst and Broll have been compensated for the renegotiation of their contracts with Bonatla.

Du Plooy said a detailed announcement carrying a contract cancellation fee would be made in due course.

Du Plooy echoed Vontas' statement that the two parties were parting on an amicable basis.

He said disagreements about strategic direction were normal in the course of doing business.

The contracts were renegotiated to allow Bonatla to deal with offers at hand without the burden of management contracts.


Publisher: Business Day
Source: Sibonelo Radebe

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