20th November 2007

We have had exciting times at Garlington. The first eight houses are currently under construction. The new gate house is almost finished. The booms, cameras & access control will start in the New Year, whilst the temporary gate house continues to function as it has always done.

T.P.S (Tactical Protection Services) is a local based company in Hilton & Howick who have the Wedgewood, Spar and Sutherlands accounts, have now assumed the role as security provider to the Estate. The perimeter electric fence is fully electrified and additional braced stays have been installed due to the terrain. During the daytime there will be a roaming guard, with a vehicle, as well as a guard at the gate. During the evening there will be one armed guard patrolling on an all terrain vehicle, one guard patrolling with a trained guard dog, as well as a guard at the gate. All guards will have cellular phones and two-way radios. The new quad bike will based at the gate house for armed response as well as perimeter patrols. TPS themselves also have their own off-site armed response and will make between two and four visits in the evenings. Knight Force, who work very close with T.P.S also carry out regular monitored patrols and are most likely to be the alarm system company of choice. Access control cards are now compulsory as the first residents are moving in during December. The electronic cards will be available as soon as the security booms, the cameras, electric readers, hardware & software have been installed.

There have been over 300 trees planted on the Estate thus far, some of which are Liquid Amber, London Plain, White Stinkwood, Pin Oak & Red Wood - to name but a few.

The orchard is well established and oranges are starting to appear. This Orchard is irrigated from one of the two boreholes that have been sunk on the Estate.

The Promenade, which is much larger than we anticipated, has been planted with Cynodin and the construction of the Werf walls has started. The open space boarding on Wedgewood has greened up beautifully and Jerry van Rooyen (the Estate Manager) is in the process of planting an Avo orchard on the right-hand side as you enter from Seeking Drive. Wildlife recently spotted on site include 20 Reedbuck, 8 Duiker, 6 Rabbits, Jackal, Plovers & Chicks, 1 Cerval cat and an Owl. We are in process of chopping out thistle in the horse’s paddocks as well, and the small Inguni herd has kept the grass at an acceptable level.

October recorded the highest rainfall that we have ever experienced. Of the 30 days in the month, 26 consisted of drizzle or rain and in total 251 mm was recorded on Site. (See photograph, some sites should have been sold as river plots !)

The plans for the Coffee Shop, Home Owners Office, Gym, Deli & Indoor Pool are 90 % complete and will go out to tender early in the New Year, as will the apartments. The two tennis courts will also start in January 2008. We are looking at moving the stables closer to the paddocks, but this decision cannot be made without liasing with all of the parties whom may be affected. It is proposed relocating them to below the old shed on the eastern boundary.

For those who are moving onto site imminently or intend commencing building in the near future, water metres are available from the Estate Manager (Jerry) or the Office (Michelle). These are electronic metres to aid and assist the Home Owners in the monthly reading of each individual meter. Electrical connections need to be made with the Pietermaritzburg Municipality, who will install the meter & cable to the individual houses.

Plans are coming in thick and fast and whilst the Aesthetics committee has been accused of being pedantic in some cases, we are committed to ensuring that the building code is adhered to one hundred percent. Many owners have in fact thanked the committee for their constructive comments which have in turn enhanced their investment in the Estate.

All services, including roads, sewer, electricity, and intercom & Telkom sleeves have been installed and we as the developers have appointed a firm of contractors for on-going maintenance, particularly in light of severe storms that were encounted in October. The original civil contractor is also rectifying some of their defective work in terms of their contract which carrys a 12 month maintenance period.

As a result of the summer mist being experienced at Garlington, we have decided to install red Solar LED cats-eyes on the main arterials and at the stop streets. This is still a pioneer project in South Africa, but we are prepared to take the chance, as it will make your life a lot easier since they actually emit a fair amount of light throughout the night.

I attach a copy of an article that appeared in the last Fin Week which I share with you. On average the re-sales prices achieved in Garlington vary between two or three times the original purchase price.

“House prices were still rising at double-digit rates in October: around 14%, according to Absa's latest house price index. But it now seems increasingly likely that house price growth could dip below 10% early next year. Some commentators say it's possible that prices could even drop in nominal terms in 2008. But it's not all bad news for the residential property market. There are still pockets of strength that are likely to continue to show double-digit price growth over the next 12 months. Most commentators expect the lower end of the market priced below R500 000 and the top end priced at R10m plus to show the best returns over the short term. SA still has a massive housing backlog and a rapidly growing middle class aspiring to home ownership, which should continue to drive demand at the lower and middle end. Activity at the very top end also remains brisk as buyers in that bracket are often cash buyers or overseas investors less sensitive to interest rate hikes than their lower and middle income counterparts”.

Regards,

Sean Moffatt

PHEZULU PROJECTS (Pty) Ltd
Project Managers & Property Developers

Tel : 033 3428482
Cell : 083 2502550
Fax : 0865129432

190 Jabu Ndlovu (Loop) Street
Pietermaritzburg

PO Box 227
Hilton
3245