Leon Lourens

Centurion (ZAF)
Role(s):
Other

Buffelskloof Development Holdings Pty Ltd

Find More Startups Startup
Location: Centurion
Industry: Real Estate
Year Founded: 2012
Number Employees: 1-10 people
Business Stage: Growth (not profitable)
Entity Type: Incorporated Outside United States
Description: Earn 30% RoI pa over 3 years: The company Buffelskloof Eco-Reserve (Pty) Ltd has been set up specifically to invest in the initial development plan of a 3000ha Eco-reserve in South Africa. The difficult process of getting development rights has taken 3 years and has subsequently been granted. The Environmental Impact Assessment (EIA) has been completed. There are therefore no outstanding approvals required. The purchase price of the 10 farms, Buffelskloof (2), Waterval (1) and Roodewalshoek (7) is USD 3million plus VAT (which is repayable by the Receiver of Revenue). The development consists 150 full-title stands on a 3030 hectare eco-reserve. The developers require USD 3.5 million to complete the purchase of the farm and installation of the services for the first 3 phases of the development. The balance of the development costs will be generated through the subsequent sales of full-title stands. Funding is required for an estimated period of two to three years. The initial funding for the development will be sufficient to complete the infrastructure on phases 1, 2 and 3 of 7 (67 stands of 150) at which stage the value of sales stock would exceed USD 4.8 million. Break-even, excluding rehabilitation and non-essential services for the project is expected at this stage and loan funding could be repaid as the stands are sold. Type of funding: The required funding can be in any combination of loans, collateral, mezzanine or equity funding which will be considered and can be negotiated. Return on investment: A return of up to 30% per annum is projected and budgeted for the potential investor. The option of 20% equity in the holding company has been planned for and can be negotiated. This percentage may also be increased if required. Guarantees: The purchase of the land will leave the property unencumbered and together with the development approvals can be used as security. A first bond is therefore possible. The agricultural land value of the 3000ha would be approximately USD 3 million. The commercial valuation of the land with the above approvals will be in excess of USD3.5 million. Potential sales - African Rainbow Mining: Two of the important platinum mining groups in the area have already shown an interest in the development. We are currently in discussion with several mines in the area i.e. Dwarsrivier and Twee Riviere. They have already shown interest in up to 100 stands in the development for senior staff members. Should the development not start soon, we could loose a large portion of these potential sales. According to our consultant there are a number of other mines in the area who would also be interested in this project. From this source alone we should be able to sell enough stands to achieve break-even. There is also a growing need for urbanised South Africans to find a secure and safe retreat. Affluent residents of the surrounding small towns have also shown a keen interest to find suitable alternative housing solutions outside of the town centres due to growing urbanisation and the accelerated migration to towns of the previous rural population and miners. The towns in the area are currently limited in their ability to provide services for further development and expansion. Lastly there is a large interest in this type of eco-reserve development from international investors. The natural diversity and splendour of this development makes it an extremely attractive option. Profit: The projected sales should realise upward of USD 15 m at completion including the cost of the loan. Break-even is expected at 65 stands or by the end of phase 3 of 7. Please feel free to check any of our credentials as well as the draft website which can be found at: (URL removed) . The website has a lot of information which you might find interesting. Note that the website also indicates that there are “only 121 stands left”. The balance of 29 stands, which in our opinion are the prime sites, have been reserved for the owners and investors in the project should they want to own property on the development but may also be sold. This is only a short summary of a comprehensive business plan and which we are prepared to share with the potential investor. There is also a large amount of other information available on request. Below please also find a realistic 2 year plan which includes the cost of a 30% return on a USD 3.5 million loan.