Is a property valuation available?
The property has been valued on the basis of a comparative market analysis. The asking price for the property is R6m.
What Advertising/Marketing is carried out?
The nursery is registered and a recognised supplier of certified Macadamia nut saplings and is listed in the various journals related to the industry. Having established at about the same time as demand for saplings started this nursery is well known to farmers in the new macadamia growing areas.
Is the business VAT Registered?
The business is defined as vat exempt enterprise.
Are there up-to-date Management Accounts available?
Up to date management accounts can be made available to qualified buyers
What Balance Sheet and Income Statements are available?
Financial statements to February 2016 are available to qualified buyers. AFS to February 2017 will be available.
What is the age analysis of the debtors book?
There is no debtors book. The sale of cucumbers and peppers is on a cash basis. The seedlings sales require the buyer to place a 50% deposit with the order. The balance of the purche price is payable before the seedlings are collected.
Is Seller finance available and for what amount?
How could the income of the property be increased?
The Macadamia greenhouse currently has a capacity for 100 000 trees. This can be more than double at the expense of the less profitable, but more regular income of the cucumbers and peppers.
What is the total staff complement?
The total staff complement is 36.
Give a breakdown of staff/ functions/ length of service?
All staff members fall into the general worker catogry although some have been trained in various aspects of nursery work.
Do any receive special perks or incentives?
Staff are housed locally.
Are they on contract?
Do any have management potential?
There is field management potential among the staff, however adminstrative management is undertaken by the owner and his wife.
How involved is the Owner in running the business?
The owner manages the day to day routine of the nursery and liases with buyer and suppliers and take chrage of harvesting seeds and cutting for grafting.
When does the current lease end?
In the event that the purchaser purchases the business only, a lease will be drawn up between the buyer of the business and the seller, who is the owner of the property, for a rental of R30 000 per month.
What is the annual escalation %?
What is the square meters of the business?
There are 2 green houses. One of 6000m2 and one of 8000m2.
Who is the Owner/Landlord?
The seller is the landlord. However the property is also for sale.
Do you require a licence?
Yes. The business is a registered supplier of certified Macadamia saplings.
Describe the Property being sold
The property is a 7,6ha small holding, uniquely situated within the security boundary of a golf estate. The home stead is a modern 4 bedroom house set in extensive parklike gardens, with triple garage and office. It also has a 2 bedroom cottage that would be suitable as a managers house. The business operates from 2 green houses. The Hydroponics green house is 6300m2 and currently is where the cucumbers and peppers are grown. It can be converted to the growing of seedlings. The other green house is 3600m2 and is where the Macadamia seeds are germinated, seedlings are grown and the grafting is done. There is a further 800m2 of shade covering where the saplings are hardened off prior to despatch to the farmers.
What are the main assets of the business?
A list of assets will be made available to interested buyers.
What is their overall condition?
The assets are in a well cared of condition.
Do any require repairing?
Naturally ongoing repairs and maintenance is necessary.
How have they been valued ?
The assets have been valued at cost.
Are they presently insured?
There is phenomenal demand in the district with a major shift from sugar cane farming to Macadamia farming. The area is deemed to be one of the best for Macadamia cultivation in the world.
There is a 18 month growing period. So, although the establishment costs are covered by a 50% deposit ther is a waitng period for the final payment.
The demand for samplings in the area is expected to be much greater as more farmers to to diversified farming and growing Macadamia nuts. The cucumber and pepper part of the business is currently only helping with cashflow. Ideally the entire operation should convert to Macadamia nut seedlings. This would treble the capacity of the business.
By not growing the business to meet the demand, opportunities could arise for opposition to enter the industry.
What is the reason for the sale?
The owner has reached the age where he will not be able to continue with this business.
Why is this property a good investment?
The property is in a highly sought after area. The business is in a rapidly growing industry.
What is the asking price?
The asking price is R6 million Rand for the property and R7m for the business, including R2,4m stock.
Describe the enterprise
This was predominantly a hydroponic farming enterprise growing cucumbers and peppers for the local market. However rising costs and stagnant prices required the owner to diversify. The tremendous growth in the Macadamia Nut farming in the area has created a demand for saplings. This requires germinating seeds, grafting the required stock to the seedling root stock and growing the sapling untill it is large enough to plant in the field.
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