Nick Wilson

Real estate agents in Eastern Cape are experiencing strong demand for game farms as investors are attracted to the region because it is malaria-free and relatively safe.

Gregg Rippon, specialist farm agent for Pam Golding Properties, says the group has 45 farms listed for sale on its books. “Every week we will have 10 different inquiries for farms,” says Rippon.

On Monday, a R10m prospective buyer from the UK called looking for a game lodge with traversing rights on to a “big five” game reserve.

Rippon says a local from the Border region also called this week looking for a game farm priced at about R7,5m, as well as another looking for a “luxurious game farm”.

“People are generally looking for farms valued between R7m and R15m.”

He says that in Eastern Cape, many game farms were previously beef farms that have been converted for their new purpose.

He says Eastern Cape’s draw cards include it being malaria-free and that there are few land claims in the region.

“If you look at other areas, Eastern Cape is safer. From a security point of view, it is very attractive,” says Rippon. The farm sizes average between 1 500ha and 3 000ha.

Last year, Rippon was involved in a transaction that saw about 25 000ha purchased by a US investor from 15 owners for conversion to a hunting farm.

The total value of the deal was about R160m, of which Rippon was responsible for R60m.

The balance was a private transaction.

“Generally, however, most of the overseas investors are looking for small private game farms for hunting purposes as these are priced in the R10m mark.

Any investor looking to invest considerably in excess of this understandably tends to seek some sort of return on investment, and the majority form a partnership with a professional hunter who then manages the farm,” says Rippon.

Craig Fensham, principal for Seeff Properties in Port Elizabeth, says the branch is also experiencing demand for game farms in the region.

Fensham says this demand is from US investors and Dubai groups, who are investing a lot of money in Eastern Cape.

“We know of three prominent game farms that have been sold, one to an American group, two to Dubai groups,” he says.

The most prominent game farm sold in the region in recent months was Shamwari Game Reserve, between Port Elizabeth and Grahamstown.

Dubai World, the investment arm of the Dubai government, has acquired majority shareholdings in three game reserves founded by Eastern Cape ecotourism entrepreneur Adrian Gardiner, for an undisclosed amount.

Dubai World, which owns the Victoria & Alfred Waterfront in Cape Town, acquired an 80% interest in the Shamwari Game Reserve earlier this year.

Source: Business Day