Projects:
Msauli Village Resort
Investment opportunity
Msauli Village is regarded as a unique investment opportunity – especially for a developer looking to establish an integrated tourism resort based on a timeshare (or similar) model. The basic principle to be applied will be that the private party(ies) will assume responsibility for all financial, technical, marketing, operations, maintenance and training areas of risk/responsibility. The private party(ies) assume these risks in exchange for the opportunity to invest and operate at Msauli, and to utilise/enhance the existing asset base. This should enable the private partner to make healthy financial returns.
Interested parties can contact Mr Godfrey Mogoane at the BATOBIC Programme office for further information.
Description
Msauli Village was developed as a mining town in the early 1940s. The village is situated in a picturesque valley at the foot of the Ngwenya Mountains within the boundaries of the Songimvelo Game Reserve. The approximately 100 houses that were used for senior personnel constitute the most valuable part of the accommodation facilities. Houses are either three or four bed roomed units, some 25% with en-suite or double ablution facilities. Thirty-nine of the houses are brick and mortar construction with the remainder being prefabricated. Eight of the houses are provided with swimming pools. (Note: Numbers to be verified during investor mobilisation process).
The residential area of Msauli village is served with a reasonably well constructed road network. The village is provided with power from ESKOM through a dedicated overhead power line running from Barberton to a main sub-station. All accommodation units are provided with power at a nominal 220V.
There is a recreation club with men’s and ladies bar as well as function halls, a small shop, snooker and dart facilities and a well laid out barbecue area. A nine hole golf course situated next to the Mtsoli River and Songimvelo Game Reserve is an under utilised asset that needs attention. Other facilities include school buildings (closed), hospital buildings (closed) a soccer field with pavilion and commentators box, swimming pool, squash court, floodlit Bowling Green and three paved tennis courts, one of which is floodlit.
This project is focused on the rehabilitation of an old mining village into a leisure residential and/or resort type tourism development. This project was identified as a priority project in the 2011 Tourism and Biodiversity Corridor Strategy (facilitated via BATOBIC). There was no tangible progress with the implementation of this project since 2003 due to the fact that the property was subject to a land claim that was unresolved until 2010. The situation as of 2011 is that the ‘land claim’ has been finalized and the property transferred to the new owners. The new landowners have indicated that they would like to pursue the development process based on a community, private partnership.
Importance
The successful rehabilitation of Msauli village and the subsequent lease of individual properties with rehabilitated houses is a development opportunity that can be implemented in the short term. The major spin-off effects of this are expected to include:
Employment creation and SME development during the course of the rehabilitation of the village. Preferential clauses would apply in the CPP contract;
Fixed investment by the private sector based on the rehabilitation and upgrading process.
Revenue streams for the landowners derived from the leases of the various residential and/or commercial properties. These could include guaranteed base rentals as well as turnover based revenues.
The proposed traversing rights (not exclusive) into the Songimvelo Game Reserve would also secure a revenue stream for the Mpumalanga Tourism and Parks Agency (MTPA) and would act as a focused marketing campaign (‘word of mouth’) for Songimvelo.
The successful lease of the residential stock in Msauli will also have the spin off effect of boosting investor confidence in the destination.
SMME development opportunities related to the new leisure residents (100 houses), since they provide a captive market for a number of the tourism-related facilities and products in the area. These include guided and self-drive traversing through the Songimvelo, Malolotja, and Mountainlands Nature Reserves, Barberton Town and Ebutsini 4X4 trail, to mention but a few.
Finally, having a semi-permanent population will also increase the demand for related commercial and social services. This in turn contributes the diversification of the local economy, and create a new economic life-line for the people living in this somewhat isolated location.
Implementation
The investor mobilisation and attendant processes are being jointly implemented and funded by the Business Trust - Transaction Advisory Fund and BATOBIC Programme.