BR02 – Exquisite Game Ranch – Botswana

PORTFOLIO

1) SIZE

This Property is a combination of 5 farms bordering each other. 4 433 Ha (Freehold)

4 280 Ha (Freehold)

5 199 Ha (Freehold)

4 280 Ha (Freehold)

9 000 Ha (Leasehold) Giving a total of 27 092 Ha and these farms are contiguous.

2) LOCALITY

Property is less than 40km from Ghanzi in the west of Botswana.

Ghanzi is connected by tar road to: Eastern Botswana / RSA and Namibia via Trans Kalahari highway

Maun and Ghanzi have all modern amenities including:

Regional airport which can cater for international arrivals / departures with

prior notice.

New regional hospital and several well stocked supermarkets, butchers, bottle stores etc. Ghanzi is a development node for western Botswana and is a thriving growth point and regional administration center.

3) PROPERTY

The property comprises 5 farms which have been consolidated to form a contiguous property which has been developed as one conservancy. 4 of the farms ( 19 500 Ha) are freehold tenure the other farm (9000ha) is leasehold from Government of Botswana with ±42 years to run on existing renewable lease. The external perimeter is fenced with a 17 strand 2.4 m high game fence approx. 110 kms in extent.

There are 6 residences on the farms including a well-developed HQ complex with store, cool room, workshop and stables, HQ power is solar. The water development is extensive and comprises solar, windmills and submersible systems. The road and firebreak network is extensive and well maintained.

The farms have been chemically de-bushed to counteract bush encroachment, which is endemic in the freehold Ghanzi farm block as it is on farms and commonage generally throughout Botswana. At this stage approx. 15 000 Ha or approximately half of the total area, have been treated.

The topography is equally divided between Kalahari sandveld with rolling savannah and the calcrete, water rich, stone veld of the Ghanzi ridge.

The property was previously in the process of development as an eco-wildlife estate. Approved documentation is available. The company is for sale, inclusive of all assets

4) THE IMPROVEMENTS

The Lodge

The lodge can accommodate 14 people (7 x doubles) in luxury and is rated as 3* by the Botswana Tourism Authority.

It comprises 7 accommodation units, these are constructed using traditional safari materials i.e. canvas and thatch, all are main-en-suite and each unit is positioned to ensure individual privacy.

There is a large thatched dining room / lounge which overlooks a calcrete pan, a boma where evening meals are usually taken alfresco.

Close to the accommodation but far enough away to minimize disturbance is a skinning shed and trophy store.

The usual and necessary service rooms such as kitchen, pantry and stores and staff accommodations are all in place.

The Lodge is serviced by a solar powered borehole and is backed up by a Lister / Mono powered borehole for overcast days or when more water required.

Residences:

There are 6 management houses on the whole property which is as follows:

The main management (HQ) hub consists of a large manager’s house consisting of 4 bedrooms, 2 bathrooms, 2 lounges, kitchen, scullery, and pantry. There is a large covered verandah with a swimming pool. There is also a private guest cottage attached to the main house

There is on the same portion of land a 3 bedroomed, 2 bath roomed managers house, stables for 10 horses, a large workshop and storage warehouse with a cold room and meat processing rooms. They also have a nicely developed vegetable garden.

This complex is solar powered with 24 x 2.4 Kw panels on sun tracker system with 48 2v glass battery cells and 3 phase MLT drives invertor there is a backup Deutz 16 kVa diesel generator.

There are two equipped boreholes supplying the HQ complex and one unequipped backup borehole.

The 2nd Managers House which consists of 4 bedrooms, 2 bathrooms, 2 lounges, kitchen, scullery, pantry and guest room / office. There is a large covered verandah with a swimming pool and well-developed garden, which includes a large dam. There are various out buildings including laundry, stores etc. This house is solar powered with a backup 16 kVa generator and there is a strong borehole with a Lister and Mono and tank stand.

The 3rd managers house consist of three bedrooms, two bathrooms, large kitchen with pantry, walk in wardrobe, large lounge and a covered veranda. The house is positioned to ensure privacy to both the occupants and the owners. All three houses at the HQ use the solar generated power and main water reticulation.

The Game Managers house consists of a 3 bedroomed, 2 bath roomed, lounge, kitchen, pantry, study, covered stoop and outbuildings and carport. This house is solar powered and is ±400 meters from the General Manager’s house and from where it receive its water.

The 4th house is a 3 bedroomed traditional farm manager’s house. It has a strong borehole, header tank that is driven by a solar powered pump.

Water

These farms runs on what is called “The Ghanzi Ridge” and thus, the water is shallow and plentiful throughout. There are 19 boreholes currently in use throughout all the farms. They are on average 40m depth with water at 15m. The water is sweet and potable.

There are 3 boreholes equipped with Lister engines and mono pumps, 5 windmills, 9 solar powered and two in the sand veld equipped with diesel generators and submersibles.

There are a further 13 proven boreholes drilled and capped. These were drilled as part of a scheme to divide the property into an eco-lodge leisure development that was subsequently abandoned.

There is a pipeline from HQ going north into the sandveld which supplies a further 3 game drinking points.

GPS cords and a description of each water point will be given to buyers on date of viewing the property.

Roads and firebreaks

There is a comprehensive well-maintained road and firebreak network throughout the farms.

Cattle infrastructure

This 9000ha lease farm has been comprehensively developed into a state of the art cattle unit.

There are over 75 km of 5 strand cattle fences, 4 central Kraal complexes and a central loading facility.

There are 6 reservoirs with a total capacity of 1 million liters of water and associated water reticulation through HDPvC 75mm piping.

There are two boreholes equipped with generators and submersible pumps.

The farm has been chemically de-bushed where necessary.

The grazing on the farm is in excellent condition and is recognized as ideal for cattle.

GAME FARM DETAIL

Flora

A part of this farm’s geographical area is known as the Kalahari Desert, which is really a misnomer, and would be better described as the Kalahari savannah. Within this farm there are two distinct ecological systems. The north is sand veldt where a thick layer of sand overlies the calcrete bedrock, there is no surface water except in the wettest of rainy seasons and then for only a short period. The south is calcrete stone veldt with shallow ground water and pans, which in a good year will hold water all year round.

The various mammals present on the farm prefer different habitats partly depending on the season and weather, generally the northern sand veldt is favored by the grazers such as zebra, rhino, springbok, hartebeest and gemsbok whilst the browsers such as kudu, eland and giraffe prefer the stone veldt with it’s bigger trees such as the many types of acacia, camel thorn being a favorite, and leadwoods. However it’s not uncommon to find eland and giraffe on the sandier soils where they are partial to apple blaar and silver leafed terminalia.

Fauna

Many types of birds occur, the white backed vulture is common and has many nesting sites in the leadwood and acacia belts on the stone veldt, kori bustards are abundant and prefer the sand veldt where they march through the grass devouring insects disturbed by their passage.

The man made water holes attract many species and it is noticeable how the guinea fowl and francolin populations have boomed with the water availability.

There are many types of raptor from the huge marshal eagle to the smaller goshawks, a particular favorite is the bateleur eagle which is widespread.

There is a substantial population of all the Kalahari species such as:

Eland ±500 Waterbuck ±270

Gemsbok ±600

Kudu ±900

Zebra ±200

Red Hartebeest ±40

Blue wildebeest ±700

Black wildebeest ±50

Impala ±250

Springbok ±50

Giraffe ±30

Ostrich ±60

and numerous Warthog, Duiker, Steenbok as well as the smaller cats such as Lynx, Bat eared fox, Genets etc. as well as transient species such as Cheetah, Leopard, Wild Dog etc. and the occasional Lion and Elephant. (The above game numbers and species list is an indicative game numbers would be counted and valued accurately in the event of a sale it is based on a comprehensive count performed in June 2013)

HUNTING

The hunting takes place on the contiguous area of 18092 hectares. This area’s external boundary is game fenced and there are no internal fences.

This property is primarily a hunting safaris “type” of farm. Photographic and eco clients are accommodated out of the hunting season which is in generally from the months of October through to April.

Further income is derived from meat and live animal sales.

This trophy hunting safari farm’s clientele were predominantly from USA but some clients from Europe, Australia and Southern Africa also enjoyed good hunting. The so called “biltong” hunters are generally from Botswana and South Africa.

Water and hides

There is a comprehensive series of waterholes throughout the game farm. These are mostly Grundfos solar powered.

There are five bow-hides developed with the help of American outfitters and to their specifications. There are three elevated hides overlooking waterholes.

In the 2013 hunting season the company turned over in excess of P 4 million from hunting and meat as it’s a US$ based business, turnover increases in BWP terms due to the general decline of exchange rate.

7) CATTLE RANCH

General

This is a 9 000 ha lease hold farm and mainly a sandy soil type of veld farm.

External fencing:

The external perimeter of this farm is game fenced as previously detailed. The side of the farm that adjoins portion 1 of 142 NK is also game fenced to the same standard.

Holistic veld Management

A holistic veld management techniques which although infrastructure intensive enabled stocking rates to be increased. The owner’s stocked at approx. 1 LSU to 4 ha compared to the Ghanzi norm of 1 LSU to 12 – 15 Ha. As the system develops and the grasses respond we anticipate the stocking rates to increase to as much as double normal carrying capacities in the area or better.

Water

There are two boreholes on this farm around 360m deep. They deliver approx. 12 m³ / hour to central reservoir capacity of 600 000 liters or approx. 1 weeks’ buffer when fully stocked.

Both boreholes are equipped with a Lister generator driving a Grundfos submersible pump housed in an engine room.

Water is pumped from the central reservoir system to the reservoirs in each quarter by means of a 6 HP Lister engine driving a Lister push pump, into a 100 000 litter storage reservoir. This in turn gravity feeds, the drinking troughs via high pressure float valves. All water reticulation is through 6 bar 75mm HDP pipes

Central hub

There is a central hub on the farm that has loading facilities, holding kraals and water. This hub is connected to the quarter hubs by means of a cattle walkway enabling easy, stress free movement to and fro.

Infrastructure

Holistic Management

The infrastructure on the cattle farm was developed to enable holistic range management to be adopted.

Holistic range management entails creating short sharp heavy grazing pressure on relatively small areas with subsequent relatively long rest / recovery periods for optimum grass species regeneration, selection and diversity. This is especially relevant in low rainfall semi-desert conditions where veld management is paramount.

Fencing and paddocks

To enable the holistic management has entailed development of a comprehensive network of paddocks, handling facilities and water reticulation.

The farm has been divided into four equal sectors of approx. 2 200 Ha each. Each sector has a central hub, this contains:

A 100 000 litre reservoir which feeds 6 high pressure water troughs

Cattle handling facilities including a crush and neck clamp – the cattle are required to transit the crush each time they enter and leave thus creating familiarity and reducing stress when the need arises to handle the cattle.

Feed troughs

Each sector is further divided into four quarters with traditional five-strand fencing. Each quarter is then sub-divided again into three paddocks using electric fencing.

Thus there are 12 paddocks / sector of approx. 175 ha. thus overall on the farm there are 48 grazing paddocks.

The operation is that the cattle come to drink; when ready to exit they are directed to the required grazing paddock by the simple opening and closing of access gates. Typically one 175 Ha paddock is grazed for 3 days by 800 head which return rotationally for a further 3 days until grazing reaches desired depletion. This will suffice as a stocking rate reference which is usually season dependent in most cases.

The system requires low labour resources, typically once the cattle know the system one man can manage the daily grazing movements. The system is repetitive with low stress on the animals.

Movement from quarter to quarter is done by a system of walkways to and from the central hub. Again this is designed to minimise labour intensity and again can typically be carried out by one man and is low stress to the cattle.

Cattle are loaded out of the farm from the central hub which has a comprehensive lairage and loading ramps. Cattle are walked to the loading facilities through the walkways.

Outlook

The cattle industry in Botswana has been challenging for the last few years with management issues at both BMC and DVS.

There is a project to construct a cattle abattoir in Ghanzi. This project is well advanced and will be a joint project between local commercial farmers, financiers / investors from RSA and the Ghanzi District Council.

Finance, management and infrastructure have been organised and approved, the project is awaiting assent from central Government, which we believe is imminent.

Construction and commission of the abattoir will transform the cattle industry in Ghanzi District.

8) PRICE

Due to the sensitivity of this game farm, certain detail and information will only be made available by the Seller to the Purchaser. Tax, transfer duty considerations etc. will in all likelihood dictate the best methodology

The asking price for the fixed assets including the land is:

BWP 111 500 000-00