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The Opportunity A select few investors (max 13) will be able to acquire shares in the property holding company which will entitle them to build a home on the property. Size and location of these “building plots” and “mini farms” vary from 1ha to 5ha each. The investment ranges from R450 000 to R1 000 000. Investors enjoy traversing rights over both farms on foot, bicycle or horseback. NB- no quads. The Lodge operator offers horse-and-cart rides and horse trails designed so as not to impact on the privacy of the shareholders' plots.
The Property
The property encompasses a
total area of 736ha made up of two farms. Apart from 2 boreholes and internal farm roads there are 3 houses and six guest cottages belonging to founder shareholders on this farm at present. The farm has been game fenced with 24/7 security gate access and security patrols and game has been purchased for the enjoyment of all shareholders. Farm B is 293ha in extent comprising ± 120ha veldt grazing camps, ± 140ha cultivated grasses and ± 25ha of orchards with trees of various fruit cultivars in which area is a large packing shed warehouse. The area around the existing residential buildings of about 8ha has a mix of buildings including 6 houses/cottages, sheds, garages and a large hothouse. Internal roads are good, Escom power is available at several locations around the farm and there are 5 concrete reservoir dams and 6 boreholes with high yields.
Security of Capital Shareholders have loan accounts within the holding company to secure the value of any permanent structures/improvements (e.g. houses) that they erect on their plots. All shareholders are only ever be able to sell their own shares and loan account and thus the property as a whole could never be sold and the project dissolved.
Building Restrictions The chosen and permitted architectural styles are “Old Transvaal”, “Pilgrims Rest”, “Log Homes” or “Plastered walls and Thatch” (sample style drawings will be given to all investors). Each plot owner is permitted to build a home of max 200m² ground coverage plus, where appropriate, a max 80m² 1st floor area contained within the roof eaves plus a pool of max 6mx4m with a lapa of max 30m². Landscaping of gardens is limited to indigenous gardens and a maximum 1000m² of lawns around the house. Fencing of plots is generally discouraged excepting for a reasonable area for dogs or horses. There is no time limit within which construction must commence, but once started, construction must be completed within 8 months. Commercial/Resort Activities The founding shareholders are developing, in phases, the following commercial ventures on farm A. 1. A max 24-cabin ranch style (self catering) bush lodge with pool and lapa at the middle east section of the property. (Phase 1 of 6 cabins, pool and lapa complete.) 2. A max 8 unit (cabin or permanent safari tent) bush camp within the lower east section of the property with pool and lapa. 3. Cattle and game ranching. (Ongoing since 2007)
This means that apart from 1-3 there will be no other commercial activities on farm A. These activities will, on the other hand, enhance the value for all shareholders: A few examples: a. No levies are payable by shareholders as security, fencing, roads and livestock will be maintained at the commercial operations’ expense. b. Ranch clubhouses and common area facilities such as pools are open to all shareholders for their enjoyment and utilization. c. Stabling (at a preferential rate) is available at the equestrian centre. Also rides and cart rides at preferential rates. In short, shareholders get discounts, that are not available to tourists, all round on all commercial activities. d. The Ranch Management Company will (if requested and at an agreed fee) maintain the exterior and/or interior of their homes plus provide a cleaning service and grocery stocking service to shareholders. e. All general staff for the above commercial activities will be accommodated on the lower Farm B or will live off the property and will pass through security in and out.
On Farm B there will be:
Legal Structure Structure looks like this. Elite Star Properties 5 (Pty) Ltd (Owns property but does not trade.) ↓ Min 51% of shares held by Commercial Shareholder + loan account for improvements e.g. Estate infrastructure, fencing etc ↓ Max 49% shares held by New Investors + loan account for fixed improvements to plots
Any trading entities such as the tourist lodge operations, farming operations, or the management company will be separately registered companies or individuals who would have no claim to the land other than by way of a concession to use the land or improvements (e.g. leases).
Payment of Purchase Price • Deposit is 10% of share purchase price paid into a trust account at attorneys. • Balance which will be due in full and payable only upon issue of share certificate. Resale of Shares and Loan Account Re-sales are permitted at any time with the only proviso being that the founding shareholders shall first be offered an opportunity to re-purchase said shares and loan account. Land Claims There are no land claims registered on either of the two farms as per certificate to hand dated 03/2006. For a Google Earth View Click Here Own a piece of un-spoilt Africa just 60 minutes from Sandton and Pretoria. Call Hans Arp on +27 (0)76 971 6171 for more info, or to arrange a private visit to the property.
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