Nedbank Property Finance, Corporate (Cape), has agreed to lend the development consortium buying the Anglo-American farm Boschendal approximately R100 million to purchase the estate. The total purchase price is in excess of R320 million.

Timothy Irvine, Regional Head of Nedbank Corporate Property (Cape), said that this is a large sum to be loaned for an agricultural property but, he added, this is "more than a farm purchase – there are exciting development possibilities here on the 2,240 hectare (5,500 acre) estate."

"The estate," said Irvine, "is one of the oldest and best known in the Western Cape and its wines are marketed worldwide. It dates back to the 17th Century and we at Nedbank see this as an important move to preserve a part of the Cape heritage."

There is a significant black empowerment component in the purchasing consortium. This is headed up by Chris Nissen and represents 400 previously disadvantaged shareholders who will together own some 30% of the project.

The remaining 70% will be owned by Citation Holdings, which is represented by Frank Crothers, Juan Bacardi and Craig Symonette, son of Sir Roland Symonette, former Prime Minister of the Bahamas. Juan Bacardi owns Bristol Cellars which has been distributing Boschendal wines for the last eight years.

The developer and CEO Clive Venning has a successful track record in real estate developments in Africa, Europe and America which includes the Pezula Private Estate and Sparrebosch Golf Course in Knysna and Borrowdale Brooke Golf Course in Zimbabwe.

The land is being purchased in two stages, the first for the 917 ha Boschendal wine farm, 300,000 case winery and historic buildings and the second for the balance of the land, measuring 1,338 ha.

Irvine said that the purchase from Anglo-American would enable Boschendal to continue to operate as a premier wine growing and producing entity. It does not, he added, mean that Anglo were finding their investment here unsatisfactory, but simply reflects that their decision as announced in the press, to concentrate on their core activities.

"It is our understanding that all of the Boschendal management team, including the wine maker, will stay on under the new owners," said Irvine.

Apart from Boschendal, its restaurants and historic homesteads, the purchase will cover plant, machinery and vehicles, existing stock, and other assets such as furniture and fittings. The seven historic homesteads on the property, Le Rhone, Rhodes Cottage, Boschendal, Champagne, Old Bethlehem, Good Hope and Niewedorp, 80 managers homes and 160 employers homes – are all included in the deal.

The developers’ first phase is an exclusive residential project comprising approximately 20 Founders Estates with 20 to 40 ha each, priced at between R15 - R40 million. These owners will be shareholders in the winery and Rhodes Cottage and will be able to purchase their own "owners reserve" wine from the estate. Phase two will consist of a retirement village and small clusters of houses with prices starting at R2 m.

Venning said Pam Golding in Franschhoek had been contracted to be the exclusive sales agents. All homes built on the estate will have to conform to architectural guidelines which will ensure that the buildings are designed in authentic Cape Dutch styles.

Venning commented that Nedbank's understanding and support throughout the negotiation period had been invaluable and, he said, had helped ensure that his consortium emerged as Anglo's preferred choice as the buyer. Anglo, he said, had met with over 140 potential buyers but had only been prepared to sell to a "highly responsible" purchaser, one capable of retaining the standards and appeal of the estate and not likely to indulge in inappropriate exploitation of such a magnificent property.

Irvine said that only occasionally will a major property financier like Nedbank have the opportunity to be involved in a truly imaginative upmarket project like Boschendal. It will, he said, attract interest from both South African and international markets.

For further information please contact Clive Venning on 021 874 1163.