THE VISION
To create a village with the concept of an ancient city that offers a peaceful and tranquil environment within a secure and safe haven in the oldest desert with an ambiance that will invite all and everybody to live, work and play within its walls and still be part of the latest eco friendly and technological development the world has to offer.
THE BACKGROUND
The Town
With palm-lined streets, seaside promenades and fine accommodation for all budgets, The City is Namibia's most popular holiday destination, and its pleasant summer climate and decent beaches attract surfers, anglers and beach lovers from all over Southern Africa.
The City, being in the heart of the oldest desert in the world with its roaring dunes, desert-dwelling plants and animals, including 80 species of lichen and its German colonial architecture has become a premier destination and holiday hub for holiday makers from around the world.
The Country
Namibia is the first country in the world to incorporate the protection of the environment into its constitution; some 14% of the land is protected, including virtually the entire Namib Desert coastal strip.
Namibia became an independent Republic on 21 March 1990 and is currently with Botswana one of the safest, peaceful and stable countries in Africa offering investment opportunities where the investor can still make a secure investment.
THE CURRENT SITUATION
456,295m² of land on the outskirts of The City and on the edge of the Namib Desert and River bordering a Golf Course was acquired for the development of this unique project.
All statuary and zoning approvals have been granted and the company can now start with the development of the Village once a surveyor has surveyed the land into the approved plots.
We believe that it would only be fair to allow the new partner to also have a say in the appointment of the professional team and the final due diligence can only then be done.
THE BUSINESS CONCEPT
After some research is done, it is envisaged to build a Village that will entail:
- 2,000 Seater Conference Facility
- 350 Bedroom 4 Star Hotel
- Health & Beauty Spa & Gym
- Village area with 6,870m² shopping complex for Boutique shops, Restaurants, Delicatessens, Diamond Cutting Jewellers, etc
- Retirement Village with 108 Units
- Step Down Clinic & Frail Care facility
- 50 Villas
- 102 Single Residential Units
- 70 Luxury Duplex Units
- 180 Flats
- 13,500m² Office Space
- Sport Facilities
- Nature Conservation Area
The Village will be totally self sufficient in using recycled water for gardens and parks and it will be the first of its kind in Namibia in generating solar power for warm water and electricity to provide into the general power supplier grid for use when necessary.
A comprehensive due diligence is not completed yet, as we are of the opinion that it must be done only once the partnership is established, a professional team is recruited and final changes made to the concept.
FINANCIAL IMPLICATIONS
The project can be divided into different phases, which makes it easy for the investor to sell his/her shareholding at any time, and also make the project easier to manage and control.
Namibia is currently not subjected to Capital Gains Tax, Taxes on transfer fees for Closed Corporations, and VAT on Development projects can be claimed back.
With an initial investment of N$32,000,000 before tax profits can be accrued as follows:
Phase One (Development of Infra Structure & Land)
Total Investment 89,620,652
Finance 57,620,652 64.29%
Equity/Land 32,000,000
Profit N$ 68,317,598
R0I over period 213.49% 3 yrs
R0I / p a 71.16%
Phase Two (Construction of Buildings)
Total Investment 514,558,945
Finance 154,367,684 30.00%
Equity/Land 32,000,000
Profit N$ 118,187,235
ROI over period 369.34% 5 yrs
ROI / p a 73.87%
This will bring in a combined income after recoupment of shareholding fees of:
Total Investment 680,820,140
Finance 211,988,336
Equity/Land 32,000,000
Profit R 154,504,833
ROI over period 482.83%
ROI / p a 96.57%
Phase Three (Conference Facility, Hotel and Health & Beauty Spa)
No financial feasibility for this section is completed yet as this phase can be:
Divided in different sections and sold to individual interested parties; or
Management contracts can be negotiated with interested parties meeting the set requirements; or
Rental agreements can be negotiated with interested parties.
Phase Four (Step Down Clinic / Frail Care Centre)
The cost for the ground as well as building of a Step Down Clinic / Frail Care Centre is included in the costs of creating the Retirement Village. No running and maintenance costs were included. This entity can be privatized for an additional income, or managed by a separate subsidiary company.
PROPOSAL
The private company owns 456,295m² of prime land with all Local Authority approvals passed.
A joint venture in co-shareholding can be negotiated:
- Where total shareholding is set at N$32,000,000;
- Where an interested party must take up a minimum of 25%;
- Where no more than 45% will be negotiated unless the interested party takes over a minimum of 70% of all shares;
- Where a proper mutual beneficial Shareholders Agreement will be set up to meet all partner requirements and sureties.
SUMMARY
The privately owned Development Company, owning prime land, which meets all requirements for a township development, is sourcing for a partner who in a joint venture is prepared to proceed with a property development that is in great demand in the region.
Profits will exceed N$154 million after share equity is refunded or a ROI of 483% over a period of 5 years.
