Concepts - Terminology explained..
The development of Game Farms in South Africa has led to many options in ownership. While some Game farms are run as commercial enterprises others are purely for the enjoyment of the owner. Some Game Farms are within managed areas while others fall outside these areas and management is in the hands of the owner. Some people have limited time available for usage of the Game Farm while others want unlimited access.
There are many different options and concepts. Please refer to the explanation of the concepts contained in this section. The concepts range from different ownership vehicles through to explanations and descriptions of some of the better known reserves.
We have also included a number of frequently asked questions, which hopefully will offer an explanation. If you however have any other questions please don’t hesitate to contact us.
| What is a Shareblock? | What is a Conservancy? |
| What is a Syndication? | What is a Turnkey Project? |
| What is a Nature Reserve? | Some General FAQ |
Shareblock developments may be described as multi-ownership developments.
The participants are usually common shareholders in a property owning company. The Shareblock Company owns the common land but each shareholder is allocated a portion of land within the whole to utilise as his own subject to certain rules and regulations. The shareblock owner has exclusive use of the accommodation on his site and common usage of the remainder of the land. The Shareblock Company is administered by its shareholders. South Africa has adopted legislation protecting the participants in these shareblock developments. The shareholders pay a monthly levy to take care of management costs.
Some of the important benefits of shareblock ownership are:
- Relatively small investment for benefit received.
- Usage of own accommodation at any time.
- Part of a fully managed property.
- Limited to shareholders.
Syndications normally consist of a smallish group of investors purchasing a property or interest in a property together. Syndicate members normally share common residential facilities but at different times.
A typical example would be the joint ownership of a nature reserve with one camp shared by a syndicate of say six members, i.e. each member would be entitled to the equivalent of 8 weeks a year.
Some of the important benefits are:
- Optimal usage of ones investment i.e. cost of land and improvements divided between the ultimate users.
- Running costs divided between syndicate members.
A nature reserve normally consists of a fairly substantial piece of land and which might include a number of Game Farms Owners having collectively fenced the perimeters of the nature reserve and adopting a collective management strategy. A Nature Reserve is similar in concept to a Conservancy.
The three largest Nature Reserves bordering the Kruger National Park are the Sabi-Sands, the Timbavati and the Klaserie which are all in excess of 60 000 hectares in extent.
A Conservancy normally consists of a number of Game Farm owners having similar goals and adopting a common constitution for the governance of their collective properties. They would normally only have fences around the collective properties as a whole so that game could freely traverse the entire Conservancy area. Reciprocal traversing by the owners of the properties within the Conservancy area is possible but not essential.
We have a management service that would be prepared to arrange and supervise the building of improvements on undeveloped land or sites on behalf of a prospective purchaser. Our management service would liase between the building contractors, the architects and the owners. Our considerable experience in the development of game lodges and bush dwellings will ensure that the costs do not get out of hand. The intention being that an owner can even build from a distance with peace of mind. On completion the new owner takes possession of the keys and the improvements.
Q: What does it cost to build in these wilderness areas?
A: ... It varies considerably depending on transport costs, finishes, time constraints and the likes, but generally commences at about $320.00 per square meter.
Q: What’s the difference between a Shareblock and a Syndication?
A: ... A syndication is a small group of owners or partners who together own either a shareblock site or a lodge/property. A shareblock is a registered development whereby the shareholders have exclusive usage of a site coupled with access to the larger remaining property.
Q: How safe are these areas from a crime aspect?
A: ... The areas are normally completely safe in that they are generally situated in very remote areas that falls within larger protected areas. The properties have their own wildlife management mechanisms in place. Shareblock developments normally also have their own security systems in place including regular patrols by security staff.
Q: What does it cost to maintain and run these places?
A: ... Shareblocks have a levy system normally varying between $150.00 per month to about $300.00 per month. The average syndication owned lodge/property would be in the vicinity of $300.00 while a syndication owning a shareblock would probably be less than $100.00 per month.
Q: How will I be able to manage a building program so far away from me?
A: ... Nature Net has associations with professionals that are qualified to build in the "bush" ... every step of your building project can be managed by us and the end result will be a matter of handing the keys over to you. See Turnkey Projects above.
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