Selati Game Reserve

Concept

Ownership of Nyala Lodge will vest in a Company. There will be six syndicate shares, each owning 1/6th of the shares in the Company.
Nyala Lodge will be located on the farm Koedoesrand No 790 LT. Koedoesrand forms part of the Selati Game Reserve.
The Company owning Nyala Lodge will own 36.39% of the shares in Koedoesrand (Pty) Ltd.

Nyala Lodge in the greater Selati reserve

The syndicate camp owned by Nyala Lodge is located on the farm Koedoesrand No 790 LT. Koedoesrand is 2,747.3 hectares in extent and is owned by Koedoesrand (Pty) Ltd, which forms part of the Selati Game Reserve. In addition to the land, Koedoesrand (Pty) Ltd owns 2,145,279 shares in Big Five, which with the current membership of Selati represents 10.73 % of the Big Five shares.

The Company owning Nyala Lodge will have the right to erect and run the syndicate camp at the specified location on Koedoesrand No 790 LT.
Description of Lodge.

The main building will be open plan with a beautiful semi circular wooden counter between the kitchen and lounge areas. The lounge will have a fireplace and TV. Large wooden doors will recess into the walls to open up onto the outside deck area.

Scullery, laundry and small walk-in coldroom will be provided.
Lock-up cupboards are provided for the Shareholders and a covered parking for the game drive vehicle close to the entrance of the main building.
The main building will include a bedroom en-suite. There are three additional bedrooms, two of which are on the northern side of the main building and one on the southern side. Each of these bedrooms will provide privacy and face east. The bedrooms, bathrooms and outside showers face the watercourse and the bedrooms will have air-conditioning, overhead fans and mosquito nets will be provided.

Syndication Structure

The syndication recipe in this development is designed to:

Allow members to invest in an asset which offers real prospects of growth. The value of a syndicate share will be directly related to the value of land and game on the Reserve, which is expected to continue to grow.

Allow members to enjoy the Selati wilderness (traversing on 30,000 hectares), at predetermined and fairly allocated times, from the comfort of a well appointed camp which will be run and maintained in a trouble free "lock up and go" fashion.

Management

H L Hall & Sons (Projects) (Pty) Limited ("Halls"), a wholly owned subsidiary of H L Hall & Sons Limited, owns 34.24% of the land in the Reserve and 40.83% of the shares in Big Five. Halls played the major role in establishing the Reserve and has a major influence in the running of Big Five and the Association. Prior to this syndication, Halls has been the sole shareholder in Koedoesrand (Pty) Ltd.

Halls will retain two of the syndicate shares in the Company and will act as the managing syndicate member. As such, Halls will render a service to look after the staffing and maintenance of the camp and equipment and will represent the Company's interests in the affairs of Koedoesrand (Pty) Ltd and Big Five. This will ensure a cost effective "lock up and go" arrangement for the syndicate members and it will ensure continuity in the management of the Reserve's affairs.

Usage

The Easter, Workers Day, Christmas and New Year public holidays are the most sort after time slots in South Africa. The weeks in which these occur each year represent 4 special time slots, which are taken out and allocated separately.

The remaining 48 weeks represent 48 one week time slots which are evenly allocated to the members so that each member has a time slot occurring every 6 weeks, except when there is an interruption due to the timing of one of the special public holiday time slots. These time slots then rotate by one week each year. For example, if a member has his first time slot falling in week 5, the following year that time slot will fall in week 6.

The special public holiday time slots are also allocated and rotated in a fixed fashion and each year there will be 2 members who miss out on these allocations.

Rules and Regulations

The Company and syndicate members will be require to comply with the rules and regulations dictated by the constitution and shareholders agreement of the Reserve and Big Five respectively. For the normal activities of syndicate members these are not onerous.

It is expected that the syndicate members will draw up their own set of house rules to regulate the running of their camp, game drive vehicle etc.

Levies and Fees

The Company will incur costs associated with the running of and maintenance of the camp, vehicle and other equipment. The syndicate members will decide the level of service, that is to be provided and which will determine the costs. These will be recovered via a monthly levy, which will include provision for a management fee to Halls. Any special projects or requirements, which incur costs, will be recovered via a special levy agreed by the members from time to time as they occur.

Syndicate members will also be responsible for paying the Company's pro rata share of any fees or levies payable to Big Five or the Reserve. Big Five is expected to run at breakeven or better for the foreseeable future. It is expected that there will not be any fees or levies payable by the Company to cover the running costs of the Reserve. However, there may well be costs incurred for special projects such as the introduction of new game like black rhino. While Big Five will always endeavour to fund these from the surpluses it is generating, special fees or levies might be required form time to time. Because of the share dilution, the impact of these on individual syndicate members, should they be necessary, will be modest; approximately R6,500 for every R1 million required by Big Five.

Photographic history of Nyala Lodge Progress

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Proposed new site for Nyala Lodge
600 x 800

Proposed new site for
Nyala Lodge
800 x 600

Proposed new site for Nyala Lodge
600 x 800

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