Boschendal Estates get the go-ahead
2008-11-27
THE successful transfer of the 18 Founder’s Estates at Boschendal into 18 shelf companies, was celebrated this week. According to Clive Venning, CEO of Boschendal, this means that these exclusive gentlemen’s estates are now available for immediate sale and transfer to buyers. This welcome step forward, follows after receiving final approvals from various concerned and interested parties. Boschendal can now start marketing the estates and, in the cases where estates had already been reserved, can transfer the properties to the new owners. It is understood that six estates have so far been reserved and that over half the buyers are from overseas. Venning himself and Gary Player will be amongst the first to take over an estate each. Although he had at times found the delays frustrating, the goodwill and understanding on the part of the SA Heritage Resources Agency and the objectors regarding the developers’ proposals had been exemplary, said Venning. “Getting approvals of this kind is always a long and painstaking business,” said Venning, “but I have to say, in addition, that the objectors’ involvement has very definitely resulted in major improvements to our development.” As was recently recorded in the Drakenstein Foundation’s Bulletin, their initial opposition related primarily to the site, scale and number of subdivisions, the visual impact of certain proposed homes on higher ground and the size, siting and design of certain others. As a result of the objectors’ input, the number of plots was reduced and the design criteria altered. Major changes were made to the highest placed home sites, which are now some 80 metres below their original positions, and certain other amendments were agreed to on the height and the design of all three high level homes. Venning stressed that every estate had been individually treated and that the boundaries and the design of each, although conforming to certain basic design rulings, had always been specific to each estate. He also emphasised that on eight of the estates, building will be limited because they are already occupied by historic homes, with one dating back to 1740. Most of the design features on these homes, he said, are inviolable in terms of South Africa’s heritage laws. A prime aim of the developers, said Venning, has from the outset been, in accordance with their undertaking to the Anglo-American Corporation, to ensure that the farming operation is kept intact. “The farm teams employ some 70 people full-time and a great deal more during peak harvest periods. “AngloAmerican’s great concern was that the farm teams, some members of which have been with the company for 25 or more years, should not lose employment and that Boschendal’s image as a single farming unity should not be destroyed.” Founders Estate owners, said Venning, will have little control over the vineyards or orchards on their properties. Each owner will, however, have a 1% share in the winery and the right to select vintages that will bear their name on the bottle. This relatively subtle extra, he said, is seen by many prospective purchasers as an important bonus. The estates will vary from 21 ha to 44 ha in size and in price from R20 million to R37 million. No boundary fences will be allowed on the farmed areas and only narrow exposed aggregate concrete access roads will be permitted. The R70 million currently being spent on the new estate’s infrastructure will include a municipal water supply, three phase electric power, security fencing, access roads and the renovation of Rhodes Cottage. A feature which is likely to attract prospective buyers is membership of the Founders Estate Club, which has the use of this historic Herbert Baker designed cottage built for Cecil John Rhodes. The façade here is sacrosanct in terms of heritage laws, but beneath the building the Boschendal development team will be building a wine cellar and sitting and dining rooms for the use of the Founders Estates owners and their guests. Venning drew attention to the sale agreement for the estate which, he said, will effectively save buyers not only the 14% VAT, but also the 10% transfer fee paid on most property sale agreements. This is because the properties will be sold as companies in which the buyers will own all the shares. Venning added that one of the most satisfying aspects of the development to date has been the impressive performance from those companies which either bought into Boschendal as shareholders, such as IFA, or purchased one or other aspect of the operation, as did DGB and the Kristensen group. “As property developers we were from the outset hesitant to be involved in the hospitality, wine producing or agricultural functions of Boschendal,” said Venning, “but it is gratifying to be able to report that in selecting DGB for the winery purchase, the Kristensen group for the restaurants and hospitality facilities and IFA as a 32% shareholder, we have been fortunate in finding partners who can significantly add to the viability of the operation as a whole.” Since DGB took over the winery and provided a consultancy service on the vineyards, said Venning, there have been huge improvements in both the quality and the output, with the result that Boschendal had by the end of March sold out the entire 2008 stock. Furthermore, DGB has increased the production from 250 000 to 400 000 cases, has introduced one or two new, more selective brands and has asked the farm to put a further 30 ha under vine cultivation in 2009. Discussing IFA’s involvement, Venning said that although it is too early to quantify how valuable this will be, it looks very much as if the fact that they are international operators, with a particularly strong worldwide network, will help place Boschendal on the hospitality and tourist map far more noticeably in the future. IFA’s ability to develop and run hotels, he said, will prove particularly valuable when the proposed boutique hotel receives the go-ahead from the planners. The siting for this is in the defunct railway siding on the northern edge of the Boschendal estate with views towards the Boschendal Manor House. To date donations of R226 million have been made to the community.
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