PHASE one of the Boschendal estate in Franschhoek was launched last week with interest shown by some influential South Africans, including Gary Player and FW de Klerk, both of whom attended the launch.

Phase one consists of the 18 Boschendal Founder’s Estates, funded by Nedbank Corporate Property Finance. The 18 estates have been transferred into individual shelf companies to eliminate VAT and transfer duty.

The estates measure between 21ha and 44ha and will cost buyers anything from R20m to R37m. Eight of the estates have houses on them — the R37m estate has a Cape Dutch style house that dates back to 1740.

Clive Venning, CEO of Boschendal Wine Estate, says the drawn-out and involved process of getting full planning approval from the agriculture department, environmental experts, the South African Heritage Resources Agency and various concerned and interested parties such as the Drakenstein and Franschhoek Heritage Trusts, took five years.

Venning says his company bought the estate in November 2003 for R320m and the total costs involved in completing the project came to R700m, of which R226m went to the local community in cash, land and housing.

Venning says the estates are on some of the Cape’s finest and oldest wine and fruit farms. But the new owners, though in every sense the custodians of their properties, will carry none of the responsibilities or risks of the farming operations because the original Boschendal team will continue to care for and harvest all the crops.

Owners will, however, have a 1% share in the winery buildings and the right, with the help of Boschendal experts, to blend their own wine barrels and label their own bottles. In addition, all owners will have the use of Cecil Rhodes’s own cottage, completed in 1902, as a clubhouse for their guests, for entertaining and for business meetings.

To date, one-third of the estates have been reserved and transfers will start this month. Venning estimates that the remaining 12 estates will be taken up within 18 to 24 months.

In addition, the developers are spending R72m (R4m a stand) on the infrastructure for these properties. This will include state-of-the art electrified boundary fencing with an alarm system, water and electricity installations and attractive earth-coloured approach roads.

Phase two of the development is still in the approval stage. Venning says it will consist of a hotel, residences, a retirement village and a small commercial centre. He expects approval within 12 months.

He says 270 people are employed full-time on the 2240ha estate. This will rise to about 2500 full-time jobs when it is completed.

A 5% levy on future land sales in the greater Boschendal development will be channelled to the local community via the Boschendal Treasury Trust and its subsidiaries, and will total R200m in land and cash, bringing the Boschendal contribution to R500m.

Only 11% of Boschendal will be developed; 89% of the estate will be free for a nature reserve, for the public and for agricultural use.

Venning says that in the 323 years since Jean le Long, a Huguenot, was granted the original Boschendal farm, it has had only three owners.

Source: Business Day