HARARE, September 9 (The Source) – African Sun Limited and Dawn Properties have settled a 13-year dispute with respect to the ownership of Timeshare Units at Troutbeck and Caribbea Bay resorts as well as various leasehold improvements at the hotels.
The dispute emanated from the demerger of the two companies in 2003 which had the effect of transferring the ownership of the land and all buildings from African Sun to Dawn.
A settlement has now been agreed by the two parties wherein Dawn will compensate AfSun for the Timeshare Units and the Leasehold improvements thereon as well as at the hotels at their net replacement values of $1 million and $362,000, said AfSun company secretary Vincent Musimbe in a statement on Friday.
Musimbe said proceeds of the settlement will be used to restructure the Group’s balance sheet through payment of short-term debt.
Dawn said in a separate statement that the settlement amount shall be settled by a way of set-off against a portion of rent payable by African Sun to Dawn on a monthly basis until fully extinguished.
The agreement will drive up the net asset value of Dawn by $1,4 million.
Dawn says the settlement of the dispute between the two companies would promote the sustenance of a health relationship between the two companies, mindful of how their respective business complement each other.
Both African Sun and Dawn properties are subsidiaries of investment group Brainworks Capital.