18 AUGUST 2005

Dear Purchasers

We refer to previous newsletters regarding the rezoning of Garlington. As you are aware, the Tribunal commenced hearing the submissions of the National Department of Agriculture (DOA) on the 10th of August 2005. Unfortunately the Hearings were not completed. So as to put everyone in the picture, we set out below details of the Approval, and subsequent efforts of DOA to have the Approval overturned.

1. On the 15th of December 2004, the Development Tribunal approved the development of Garlington. The Approval allowed for three hundred and twenty four residential units, a property zoned for a high care facility, Gym, coffee shop, stables and other sports amenities.

2. The DOA, after being approached by Professor O' Connor, one of the residents living in Mimosa Drive in Hilton Gardens, then submitted an Application to the Registrar of the Tribunal, requesting that they be allowed to lodge an Appeal to the decision of the Development Tribunal.

3. On the 18th of March 2005, the matter was heard by the Appeals Tribunal, and on the 5th of April 2005, judgment was given by the Appeals Tribunal, in terms of which they gave the DOA the right to lodge an Appeal against the decision of the Development Tribunal.

4. The DOA did not comply fully with the instructions of the Appeals Tribunal, and prior to the date of the hearing of the Appeals Tribunal, which was to have been the 9th of June 2005, we decided that the matter needed to be regularised, as the correct procedure for DOA to have followed was to have the matter reviewed.

Garlington Development Trust then took the matter to the High Court, and on the 1st of July 2005, an Order was granted by Consent, in terms of which the Approval which we had been granted, was set aside, and the Development Tribunal was instructed to hear the DOA.

5. On the 10th of August 2005, the DOA led their evidence. Unfortunately, they took the entire day to lead evidence, and we were unable to respond. The matter will continue on the 28th of October 2005, when we will respond to the DOA's submissions.

6. The DOA presented little or no new evidence dealing with the merits of why the development should not go ahead. They instead focused on two legal points, these being that the Development Tribunal does not have the power to set aside Act 70 of 70, the Subdivision of the Agricultural Land Act, and that they could only make recommendations to the Minister of Agriculture, requesting that they agree to allow the subdivision of the property, and secondly, that the original judgment was granted based on the Spatial Development Framework Plan (SDF) of the uMngeni Municipality, which they submit, was not properly approved by the Municipality, as the Municipality did not include the DOA in the workshops that considered the SDF.

7. It is our contention that both of the above arguments are incorrect, and we will lead evidence to this effect on the 28th of October 2005, more importantly we will lead evidence on the merits of the case, for we believe that this property should correctly be rezoned and that the original judgment of the Tribunal was in fact correct.

8. In the interim, the Chairman of the Development Tribunal has asked that we try and get together with DOA, to reach some settlement. We are pursuing his instructions.

We are disappointed about the delays as they are frustrating and costly. We are sure you feel the same. The one advantage for you, the purchaser, is that if you were not intending to build immediately, you will have the benefit of interest on your deposit, and will not have to pay interest on a bond. There is also the good news that prices have again been increased by 10%, and to date over 84% of the properties released have been sold. For those keen to start building, we share your frustration, and will do all we can to settle the matter.

We will keep you informed of any developments which take place.

If you have any queries, please feel free to email them to us at the following email address: - Garlington@vnh.co.za.

Yours sincerely

"G M S SMITH"
on behalf of THE Garlington DEVELOPMENT TRUST