Van Hoogstraten breaks silence on ‘Loan Shark’ links
Shame Makoshori Chief, Business Reporter
MULTI-MILLIONAIRE Nicholas Van Hoogstraten, who counts President Robert Mugabe among his friends, has scaled down his interests in the country’s property market in a development that raises a number of questions about the controversial business magnate’s future.
Van Hoogstraten has been a shrewd property investor through and through. It is therefore difficult to separate the British-born tycoon, whose £241 million fortune revolves around exclusive mansions, from the property market.
In an exclusive interview with The Financial Gazette this week in which Van Hoogstraten also commented for the first time about his links with Frank Buyanga — the so-called Loan Shark — the businessman said he had offloaded 40 of his properties in Zimbabwe in the past 24 months.
He declined to name the properties and could not say why he had sold them.
The property disposals sharply contrasts with the pledge Van Hoogstraten made at the time of his watershed trial in Harare.
He told The Financial Gazette then that he remained undeterred by the arrest and embarrassing prosecution and would keep his investments in Zimbabwe.
So could Van Hoogstraten have had a change of heart?
And if so, where is he headed?
“As I have advised you in the past, I would not give advance information on my business moves,” he said.
Those close to him say Van Hoogstraten will stay put.
A tactical strategist with an eye for high returns, he may have realised the property market is no longer yielding high returns and decided to offload in order to capitalise on more rewarding opportunities.
The past 24 months have however, been difficult for Van Hoogstraten. It is during this period that the businessman was hauled before the Zimbabwean courts in a high profile trial over allegations of Exchange Control Act violations and keeping pornographic material.
Van Hoogstraten is also being linked to controversial micro-financier, Hamilton Finance, which quoted public attention last week after seizing 500 houses and stands from clients who failed to repay loans ranging between US$2 000 and US$60 000.
Those linking Van Hoogstraten to Hamilton Finance alleged the micro=finance was part of the businessman’s strategy to amass properties by impounding the assets at low prices and letting them at prime rates.
Van Hoogstraten however, said from London this week his appetite for properties in Zimbabwe has evaporated, charging it was inaccurate to link him to Hamilton Finance property seizures.
The tycoon whose empire spans from Bermuda where he bought his first hotel in 1965, to South Africa, the United Kingdom and others, owns an estimated 200 properties in Zimbabwe and controls significant stakes in several quoted firms including the Rainbow Tourism Group — the country’s second largest hotel chain.
“As a general comment, I should advise you that, as a fact, I have only purchased two buildings in the past two years — a duplex (flat) in Tudor Gardens and one in Baines Avenue yet I have sold in excess of 40. So what does that tell you?” Van Hoogstraten queried.
“I have no financial connection whatsoever with Hamilton Finance other than the fact that I am their landlord at offices in Samora Machel Ave-nue and Fife Avenue.
Furthermore, the dishonest and unfo-unded allegations agai-nst (Hamilton finance manager) Mr Frank (Buyanga) are made by a minority of dishonest and worthless persons who have eaten his money. Surely that must be obvious,” he added.
He charged that instead of blaming Hamilton Finance for its actions, the market should remember the financial institution is actually playing a crucial role, linking struggling small companies to working capital in a market where banks have ceased to be reliable financiers.
“For instance, Barclays (Zimbabwe) are majority owned by Barclays Bank here in the UK and are under financial sanction not to assist Zimbabwe,” he told The Financial Gazette. It has been reported that British police were allegedly investigating Buyanga for mortgage fraud relating to properties sold in that country where he operated a mortgage firm when he fled to Zimbabwe last year.
Buyanga is strongly believed to be Van Hoogstraten’s front man.
The 34-year-old businessman has had a long standing business relationship with Van Hoogstraten and featured prominently in courtrooms in 2008 to give his principal moral support as he faced trial in a country he claims to have helped so much.
Back in 2008, Buyanga told this reporter he was Van Hoogstraten’s Zambian business partner.
Another interesting scenario is that Van Hoogstraten runs three other investment vehicles under the ‘Hamilton’ brand.
These are Hamilton Nicholas Rhodes (Private) Limited, Hamilton Alexander Sethi (Private) Limited, Hamilton Maximilian Rhett (Private) Limited and Hamilton Orrie Lincoln (Private) Limited, through which he holds 35 percent control of RTG.
Van Hoogstraten fell in love with Zimbabwe more than 40 years ago during which time he also opperated the Central Estates farms in Mvuma, a massive piece of land believed to dwarf some island states in Europe.
He spends most of his time in Zimbabwe.
Show/Hide comments
Show/Hide comment form