Opt out of the Rat Race and relocate to the stunning surroundings of mountain and trout streams near Dullstroom (a Covid-19 Best Value Hospitality Property)!: for sale

Key features

INVESTMENT PROPERTY IN SOUTH AFRICA

Dullstroom / Lydenburg area, Mpumalanga, South Africa

Includes a well-established 24 bed Trout Lodge (4 Star)

• 63 hectare property with approved development rights for an Eco-Estate, so no implementation delays.
• 31 free hold title stands of which 7 are developed and serviced for the existing lodge business and the remaining 24 full title stands are available for development.
• Great fishing from 2 dams and 3 kms of river.
• 200Kva of Electricity has already been installed on the property.
• Water rights approved for borehole and abstraction from Dorps River. 
• Existing successful and well-maintained 24 bed trout lodge.
• Excellent birding and hiking and Fly-fishing.
• The property has access off the R540 (1km gravel road) No 4x4 necessary.
• Great position- 3 hrs from Gauteng and 2 hrs to Orpen Gate, Pabeni Gate, Paul Kruger Gate in KNP (Kruger National Park)
• Panorama route including Long Tom Pass, God’s Window, Blyde River Canyon, The Pot Holes, Mac-Mac falls and Pilgrims Rest are all an easy day-trip from the lodge.

Business opportunities are extremely realistic and ROI should be realized quickly once the undeveloped stands are serviced and sold.

Zoning:  Eco-Estate (no longer an agricultural property and has NO land claims)

• A profitable LODGE over 7 developed stands in an area of +- 6 hectares (all buildings are on freehold title stands).
• An additional 24 undeveloped freehold title stands of between 1000-1500 sqm.
• Portion 71 which is the remainder of the farm, 57,6855 hectares, the common area.

LODGE: A well-established trout lodge (since 2002) sleeping 24 people in total, with various accommodation options.   The lodge enjoys an excellent reputation and is highly rated by Trip Advisor, Booking.com etc. and offers excellent accommodation, meals and service. Consistent marketing has ensured good occupancy rates. Primarily a weekend destination, there is regular midweek occupancy owing to the proximity of local mines and this has recently seen a huge increase due to mining expansion in the area.  International visitors and travel agents find the lodge an ideal stop-over en-route to the game parks and regular conferencing is a valued source of income.

Income from the lodge covers the costs of both the lodge business and upkeep. 

(Common Area)

• 200sq metres building comprising 2 staff rooms (overnight stays when necessary for the lodge operation), staff kitchen, ablutions, fully equipped laundry, furniture store and workshop. There is under-cover parking for tractors, fire trailer and other farm equipment.
• 2 010 metres of electric fencing surrounds the designated residential area with 4 gates allowing access to the river and common area.

Strengths

• The Lodge has a strong brand and is a leader in the hospitality industry in this area, through ongoing strong marketing. (SA Grading 4 Star, 92% positive feedback from Booking.com and Trip Advisor)
• Closeness to mines (within a 60km radius) has brought in mid-week business and regular day conferencing - occupation has been close to 60%. Platinum mining in the area is rapidly expanding. A new Anglo mine has just opened and Booysendal mine has undertaken huge expansion, currently building a mining estate of 316 houses in Lydenburg. This resurgence brings consistent overnight business to Stonecutters as the Lydenburg B&B’s are below par. Group and conference bookings for those companies involved with supplying mining equipment have also increased.
• The Estate is completely independent of municipal services with regard to water, electricity and sewerage. The local municipality is facing bankruptcy and failing infrastructure in Lydenburg would attract buyers from the town (only 15 mins away,) for stands at our Estate.
• The established lodge business (20 years) makes the sale of stands an attractive proposition to city dwellers wanting to either live in the countryside or invest to lease back to the Lodge business.
• The (Pty) Ltd business is profitable and well run with annual audited financials. The company is VAT registered.
• Well- trained staff.
• No land claims.
• Closeness to the R540 (1 km) suits most guests and high clearance/4x4 is not necessary.
• Strong perennial river (Dorps).
• The property is very secure within an area of little crime.
• Both the buildings and the lands are beautifully maintained.
• The lodge accommodation offers fully catered stays and also has self-catering options in all of the houses.
• Not in a Malaria area.

 Opportunities

• An owner/operator could escape the rat-race for an idyllic life-style, overseeing the lodge operation (and possible expansion) while developing the unimproved stands.
• Alternatively an investor could enjoy income from the lodge while developing the stands.
• The running costs of the farm would ultimately be covered through levies being paid on the stands. The lodge business would then not carry the costs of the farm and be highly profitable.
• Owners of cottages could rent back to the lodge and earn income from their investment.
• Increasing the number of rooms in the lodge would attract larger conferences.
• The business could be expanded to include weddings and the restaurant could be opened to locals.
• The lodge business could be terminated and the existing houses sold off along with the stands.
• A purchaser could sell off the lodge business and concentrate on the development, or continue the lodge business and sell the development.

Threats

No direct threats

Available documentation

• Google map with stands overlaid on the map.
• Approved drawings showing sub-division plans.
• Title deeds.
• Valuation Certificate (existing buildings and land, but excluding a value on the business and loose assets).
• Certificate confirming that there are no land claims.
• Vat, Grading and B-Bee Certificates.
• Comprehensive descriptions of the lodge buildings as well as the undeveloped stands.
• Gallery slide show.