What is the approximate age of the buildings?
The project is continuous and has been operational for the past 12 years.
What is the zoning of the property and what can be developed thereon?
The zoning of the property is leisure
Are there building plans available?
Yes the units are built off plan
What is the erf size and the size of the buildings?
The units comprise either 4, 8, 12 or 16 sleepers .There are besides the villas , outbuilding improvements of 4 lock up garages and 2 boat houses along with the office , bakery , bar and swimming pool
How long has the business been established.
The project began in 2007.
Fully describe the property and its income earing activities.
The development is legally approved by the Mozambique government and has a legal periodical housing certificate which allows them to sell properties. The property sales have transgressed into an exclusive upmarket holiday home development, located in the tropical Inhambane Province of Mozambique, 500 km from Maputo, enjoys the vast waters from the tranquil Indian Ocean. The development, 14 km from Inhambane itself, is situated on 32 hectares of pristine, crystal clear breathtaking coastline encompassed with endless un spoilt white sandy beaches. The founders and developers of the project are two independent ladies who are respectful of the Mozambique laws and traditions and have been involved in their tourism since 1992, have strong innovative and creative personalities ensuring the projectâs successful expansive continuity. They continuously upgrading and developing the infrastructure and the shared common areas of the development. The development currently comprises of individually owned up market holiday homes set on the beachfront with the ocean view as their window. Externally all are built on the same plan and internally custom built to ownerâs specifications, comfortable and within the budget they have allocated for structural building. The holiday homes are turnkey with the exception of the internal furnishing which is not included in the pricing. This consideration of decoration of furnishings represents each home with self-expression of the individuality of personality of the respective owner of each home and provides the homeowners with the enjoyment of accomplishment in being instrumental in the end result.
Short overview of the business.
Amidst all the misperceptions and misinterpretations rest a special place for special people, with a unique island design, location tropically pristine with mesmerizing breathtaking views of sea and sand. Being the owner of one of these holiday homes has a comforting assurance that during their absence or during its rental to tourists, the developer takes care of the homes as if they were her own. The cross border entry can be perceived as deterring and sometimes challenging but is surmountable and less cumbersome than envisaged and defiantly worth any inconvenience. The ownership of one of these holiday homes will provide you with the appreciation of the essence of the uniqueness of this tropical setting in this piece of paradise, an exclusivity of privacy surrounded by the enjoyment of luxury of location and quality family holidays.
How does the business operate on a daily base.
The developer has Mozambique citizenship and has secured a 99 year lease hold on the land on which the villas are built. Land ownership in Mozambique is not possible as all land belongs to the residing government; however the structural building improvements on the land belong to the purchasers of the holiday homes. The risk perceived is natural under these ownership laws. The positive consideration however on this investment would be to recoup ones initial outlay by holiday rentals as soon as possible lessening the initial risk whilst enjoying the benefits of the home during the periods when it is not rented out to tourists. If one takes into consideration the amount one pays for 1 weekâs holiday at any hotel or holiday resort with same or similar oceanic beauty then the comparable outlay for 99 year ownership of the holiday home becomes relevant and value is acceptably understood and appreciated. The prospective owner decides on which size home they desire, all villas are uniformly mirror image and have cosmetic similarities externally. The homeowner may internally choose designs to their own specifications and within the budget. Any add ones will be respectfully considered and will be at an additional cost to the homeowner. The furnishings are not included and are the ownerâs personal choice. The villas are designed to cater for families and groups (sleeping from 8 â 16 people), with open plan lounge dining, kitchen area and sliding doors opening this all up to a massive patio with a swimming pool and all overlooking the crisply blue ocean. The bedrooms are all very private and are set apart from the main living area and each has its own bathroom en suite and outdoor showers if requested. The developer starts the building of the villas in stages over 8 months. The lease agreement, drawn up by an attorney who also is a homeowner at the resort. The developers allow the of the spanning the payments accordingly. The homeowner has an association with valuable input on the property over which they reside. The resort offers easy user friendly access for swimming and snorkeling in the waters of magnificent crystal clear blue ocean. Sun bathers wonât be disappointed by the golden white beaches spreading further than the eye can see. Excellent game fishing can be enjoyed at the resort for those ready to test and challenge your fishing skills. Deep sea fishing and deep sea charters are available upon request. Boat houses are available on a monthly rental base at the resort. Also to be enjoyed directly from the surf of the resorts shores is spear fishing, kayaking, world class scuba diving and snorkeling. There is adequate fresh borehole water for sanitation, bathing and drinking. The local beer is most refreshing and addictive as is the abundance of freshly picked mangos, coconuts and readily available seafood fresh directly from the ocean. The temperature varies between 22 degrees in the winter and 35 degrees C in the summer. The access by road is pleasant with from time to time detours with the encouraging and continuous upgrading of the Mozambique roads. Closer to the resort there is a dirt road which is not suitable for vehicles with low clearance and the last 2 km to the resort is 4x4 accessible and tires still need to be deflated to 1,5 bar. It is preferable if driving to the resort to have a vehicle which can accommodate this terrain. Access by air from Johannesburg to Inhambane on Mondays, Wednesdays and Fridays is available.There are currently 12 own homer hoes on site. The seller herself owns another 3 , 2o which are included in the sale. the seller enjoys income from the monthly levies payable by the homeowners and her own homes which she rents out . The seller also enjoys income from the homeowners units when they are rented out as she manages the visitors stay in the units and collects the payments from the holiday makers .She then takes a % of that income for the business. The units have each their own water and electricity meter.
Is a property valuation available?
The property is on a 99 year yeas hold of which it still has over 80 years to go
Is the property being let by a letting agency?
No the property is operated by the seller
Is a copy of all the lease agreements on the property available?
Yes, there are copies of the lease/ homeowners agreements in available for perusal.
Is the business VAT Registered?
Yes, the owner of the development is VAT registered in Mozambique.
What VAT documentation is on file?
The current Mozambique VAT documentation is on file..There are up to date management accounts . The levies Taxes and VAT according to the Mozambique law are all up to date and all licenses are in place
Are there up-to-date Management Accounts available?
Yes there are up to date management accounts
What is the age analysis of the debtors book?
The debtors book tracks at 60 days .These debtors comprise the holiday home owners monthly levies
How could the income of the property be increased?
The property comprises 32 hectares on which still has the opportunity to develop an additional 18 units on this 32 hectares .Then there is an additional 24 hectares included which is available to sell additional homes on.This can accommodate 40 new homes all of which will have full sea view. There is massive extra earning potential once the full development is completed , namely: the actual selling and profit in building of the homes , the monthly levies that will be generated from each of these homes along with their ongoing additional outside visitor rentals should the owners want to make use of opportunity of renting them out to holiday makers and obtaining income from their holiday homes .The seller owns the bar and bakery and along with 2 units which also provide additional income to herself .
What is the monthly rates and taxes payable to local authority?
These will be supplies to a serious qualified buyer
What rental deposit has been secured from the tenants?
There are no secured deposits held by the homeowners but most of them have monthly debit orders which pay directly into the sellers bank account
How involved is the Owner in running the business?
the owner has an on site manager but she herself is fully active in the business despite being based in Nelspruit for some of the year. The seller employs all the staff those who maintain her operations and those who maintain the units for the homeowners and this they pay her an additional amount for .their employment is part of the contarct between the homeowner and the resort and is part of an employment agreement with the authorities
When does the current lease end?
80 years and is open for renewal
What is the square meters of the business?
32 hectares and 24 hectares with a 7 hectare stretch in between the 2 which belongs to another land owner
Is a copy of the lease available?
Yes there are copies of the homeowners agreements available for perusal by a qualified serious buyer
Do you require a licence?
Yes, a license is required and the developer of the resort has a governmentally approved legal license to sell houses with a periodical housing certificate. A building license is also required to build.
What lease deposit and/or other surety is required?
When building the new homes for the homeowner the seller requires 50% of the full purchase price upfront before she commences building
When does the current leas end.
The lease of 99 years starts from the date the purchasers pays the final payment of the home and there is an option for the developer to renew, under which circumstances they will give consideration of extensions for a pro rata payment.
What are the main assets of the business?
The assets of the business include the leasehold on the property which spans 32 hectares 24 hectares of which is still undeveloped and of which 1, 5 klm has full sea view and is capable of accomodating an additional 40 homes , the seller's 2 personally owned homes , the vehicles and the operational assets to maintain the property, , the on site bakery and all its operational assets, the on site bar and all its operational assets, the office and administration assets and the workshop assets
Are any items not included in the sale?
All the assets on site are included in the sale and a full asset inventory is available for a serious qualified buyers perusal. the assets ar in a good condition
What is the reason for the sale?
The seller has been in the hospitality industry for all of over 29 years and she wishes to semi retire.
Why is this property a good investment?
the property lends itself to massive additional development whilst in the comfort of an strong existing income being generated from the current infrastructure. The new owner may add on additional activities for holiday makers and homeowners
What is the asking price?
The asking price is 20 million SA rands
Describe the property as an income earning entity.
The costs of each villa are structured by the amount of bedrooms and square meters. When clients are not utilizing the villas for themselves, the central booking office of the resort rent out the units on behalf of the home owners for a nominal fee of 20% plus 17% tourism tax, payable to the Mozambique Tourism department. The owner of the development is also the resort manager and manages the homes whilst the owners are away. This fee is levied for the administration of the rental, ensuring that the guests renting the villas are taken care of. At a nominal fee tourists are transported to and from the airport and to the resort. There is permanent housekeeping available at each home throughout the year. The costs of this house keeper is for the individual homeowner and is currently R1 600 rand pm. The house keeper is on site daily to maintain the gardens of the villas, keep the villas clean, do all linen and laundry. They are responsible to get the villas ready for when the owners or tourist arrive. The resort has efficient security in place, for example night guards which patrols the resort and ensures the safety of the homes and homeowner. A monthly levy is payable for services rendered by the resort management of R1 900, 00, water and electricity are extra at + - R200, 00 each respectively pm, this is obviously dependent on usage. Insurance of the homes is for the home owners account. Each unit has a living area of 50sq. meters, bedrooms of 30 sq. meters and an enclosed verandah of 40 sq. meters, each villa has their own swimming pool with a deck, paving pathways between all the bedrooms and all the amenities. The initial cost of the units are for the 2-bedroom R1,5 million, 3- bedroom R1,8 million and 4- bedroom R2 million (ZAR). The villas are very popular for renting out over peak periods like December and Easter and yield R 4500, 00 per day, April R3500, 00 per day and June and July holidays R3500, 00 per day. December 2014 is already fully booked for those villas not being utilized by the actual owners. The rental of a villa over just one of these full peak periods generates enough income to pay the annual management expenses incurred with surplus to recoup the original outlay on the investment. There is a reception office, beautiful gardens and a common area which is enjoyed by homeowners and tourists from neighboring resorts which has a fully stocked bar, a putt putt course, swimming pool, freshly baked pau from their own on site bakery and freshly baked pizza. A Homeowners Association has been created and a yearly AGM is being hold to discuss all problems and decisions at the resort.
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Annual Turnover Amount between R 500 thousand and R 6 million