JOHANNESBURG – The Hermanus holiday home built by the late Herman Pretorius has sold on auction for R16.5m. Pretorius was the mastermind behind the Relative Value Arbitrage Fund (RVAF), an unregulated Ponzi scheme that solicited an estimated R2.2bn from investors.
On July 26 last year Pretorius shot his former business partner before turning the gun on himself. Pretorius’s personal estate and various entities associated with him have been placed under sequestration or liquidation. One of these entities is Hentiq 1803, a private company which was the registered owner of the Hermanus beach home.
Hentiq’s liquidators, Sandra Daneel and Christian Bester, appointed ClareMart Auction Group to sell the property. The auction took place last week Friday. On Monday it issued a media release announcing the sale.
ClareMart CEO Jonathan Smiedt said: “We had an unexpected turn out of over two hundred members of the public attending the auction as well as media journalists from various publications, one of whom described the event as having a pleasant and festive atmosphere. The bidding on the home was exceptionally fierce and saw five separate bidders competing heavily for the designer property and its contents, with three of the bidders only entering the fray after the R10m mark was met.”
The home, together with certain items of exemplary furniture, collectibles, modern appliances and apparel, was sold as one lot to a South African buyer who is living abroad. The Group then presented a vacant erf across the street which also belonged to Pretorius and which was snapped up for R800 000 by the adjacent neighbour who wishes to extend the size of his property.
ClareMart says the price achieved on the home “reflects the demand for the custom designed holiday residence of exemplary taste and which is located in arguably one of the most sought after beach locations in the country.”
The villa was featured on the front page of House and Leisure, which was published before Pretorius died.
According to court papers, the stand alone cost Pretorius R7m in May 2005. Construction started in 2006 and cost more than R9m. The curators for the RVAF alleged that the house was funded with investors’ money.
“Clearly the construction costs were all paid with investor funds,” said RVAF curator Rynette Pieters in court documents. “It is also evident from the documents at our disposal that the furniture of this holiday home was, likewise, paid with investors’ funds.”
Says ClareMart: “The sumptuous seaside home at 79 Tenth Street comprised a main house and cottage situated on a spacious 992m2 erf. The main house boasted three en-suite bedrooms, with access to the outdoor areas. The double volume open living area offered a lounge and dining area as well as a kitchen with scullery. There was also a designated dining room for indoor braaiing and entertaining as well as a lounge and dining area with fireplace. The home also offered outdoor decking, verandas and a pool with superb mountain views. The guest house comprised two inter-leading bedrooms, a bathroom and a lounge with kitchenette as well as a private sunny courtyard.”