The owners in 2004 had an idea / concept to create an exclusive, pristine, eco wildlife reserve in the Kalahari and to make this available to investors by means of the purchase of an exclusive plot on which they could build a personal lodge.
The investor was offered traversing rights over the whole property, shared ownership of the game population and participation in the management company.
The investor would pay a management levy and for other discretionary services as utilised.
The management company, with the investor’s participation, could decide on further investment to finance say a breeding programme for rare species or other such projects.
It was envisaged that we would upgrade the existing safari lodge to provide a central facility for investors comprising a restaurant, bar, swimming pool, accommodation units and other amenities and to make this available as a safari lodge on a commercial tourist basis.
The investors would participate in the profits of the lodge through the management company.
We identified and surveyed over 100 potential plots of 30m x 30m in 11 clusters. The plots were located taking into account the local topography, eco system and privacy.
We drilled 12 boreholes to give each plot access to water.
The concept was well on the way to reality in 2006.
We had over twenty investors who had paid deposits and in some cases paid in full.
We have the following documentation:
· Ministerial approval
· Environmental Affairs approval
· Town and Country Planning Board approval
· Ghanzi District Council Approval
· Approved Environmental Impact Assessment
· Approved Archaeological Impact Assessment
· Surveyed site identification for 73 plots
· Coordinates of 12 boreholes which were drilled for the 73 plots
We had the following prepared by our attorney, Neill Armstrong.
· Lease agreements for the 5 farms between the farm owners and the company.
· Sale / Lease agreements for the investors
· User agreements for the leaseholders
· Architectural guidelines
White rhino were successfully introduced.
The objective of the owners was to monetise their capital asset whilst retaining part ownership, their lifestyle and to benefit, exploit and enjoy the ongoing commercial opportunities.
A rough financial analysis
100 plots sold average price P 2 million
Development cost P 4 million
Marketing cost 20% of sale price, we agreed a commission of 20%,with the sales agent who was to bear all costs of sale.
The owners invested more than P 2 million in the above.
The scheme was terminated in 2006 for personal reasons.
There could be an opportunity to resuscitate this scheme.
The above information and documentation would be made available as part of the sale.