Last bid to save Blaauwberg Radisson Blu Hotel

There is a bid to save the companies involved in the development of the Radisson Blu - Purple Rain Properties 15 (which trades as Realcor Cape), the developer, and Midnight Storm Investments 386, which owns the property the hotel is being built on.

This would require Realcor Cape to pump hundreds of millions of rand into the development.
But where the money will come from was the question posed by Acting Judge Chris Eloff in the Western Cape High Court yesterdaywhen he heard argument on why the companies should be allowed business rescue plans.

He said it had been estimated that the hotel would need between R670m and R700m.
"I'm looking for the cash. Where's it going to come from?" the judge asked advocate Feisal Saint, who represented Southern Palace Investments 265, the company battling to save Midnight Storm Investments. Thousands of people have invested more than R600m.

One pensioner from Delft, who came to court to hear the proceedings but did not want to be named, said she sold her house and used R150 000 of the money to invest in the hotel.
"I thought it was a good investment. Now I have no house and I'm living with my son."

Judge Eloff will decide today whether to grant the companies business rescue plans. If not, liquidation applications against Midnight Storm Investments and Purple Rain Properties will go ahead.

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