Page 159 - KGR 2020-21 Annual Report
P. 159

Impact Investment
                                                            The Founders’ strategy to deliver their mission is to invest through a holistic and integrated business
                                                            model that delivers tangible conservation and community impact through a real estate and hospitality
                                                            development model.
                      Singita
                    Pamushana
                                                            The model is designed to generate revenue through a branded residence and hospitality development
                                                            programme which pays back investors for up-front capital and critically enables the reserve to operate
                                                            a sustainable annual business from levy contributions made by the vested property stakeholders.
                                    ZINAVE
                    GONAREZHOU     NATIONAL
                    NATIONAL PARK
                                     PARK
                                                    Vilanculos
                                                             Wildlife re-introduction                Food security
                                                             Wildlife protection                  Education/training
                                                             Security control & fence                Land security
                             BANHINE                         Trans-frontier status                  Water security
                             NATIONAL                                                         Infrastructure development
                              PARK                           Environmental improvement
                                                      Pomene
                                                      Marine
                     LIMPOPO                          Reserve
                     NATIONAL
                      PARK
                                                                       CONSERVATION     LAND &
                  KRUGER  Massingir                                     MANAGEMENT     COMMUNITY
                 NATIONAL  Airport
                  PARK  KGR
               JOHANNESBURG Singita Lebombo
                  Singita Ebony & Boulders
                                                                         HOSPITALITY
                                                                        DEVELOPMENT    REAL ESTATE
                                                                                       DEVELOPMENT
                 Kruger
               Mpumalanga
               International
                 Airport  Leopard Creek Golf
                     Club                     0      20    40                     100km
                                EUROPE / ASIA  LEGEND        3 globally recognised hotel brands
                                          Karingani Game Reserve (KGR)                             Revenue creation
                                                             Hospitality levy contributions
                                          Existing National Park                              Infrastructure development
                                                             Mozambique tourism and regional
                                          Existing Game Reserve / Conservation Area
                                                             promotion                           Turn-key construction
                                          Greater Limpopo Transfrontier Conservation
                                          Area               Employment and value chain opportunities  Home owner levy contributions
                                         Greater Limpopo Transfrontier Conservation Area
                                                       Node A Development        VALUE ADD – SCARCITY
                                                                                 •  Unique, exclusive product rather than commodity product
                                                                                 •  Pristine land with property rights is a rare commodity and
                                                       During this reporting period,   coming under increasing pressure
                                                       ongoing  discussions  with   •  Prime and unique resort and home developments are more
                                                       Aman and  investors  Impact   recession proof due to exclusivity
                                                       Preservation Partners to   •  70% of the top small hotels in the world are located in exotic
                                                       develop Node A with 30    or pristine natural settings
                                                       keys  and  15  residences  is   •  ERA Research has shown that large-scale special environments
                                                                                 can generate > 30% uplift in value
                                                       being considered as the
                                                       development footprint.
                                                       The program would be
              Vamizi Island, Quirimbas Archipelago, Mozambique
              (& Beyond)                               developed in alignment with   SCARCITY  +  EXCLUSIVITY  =  VALUE
              Site value:  $1 M (1 Ha)                 the Karingani Development
              5 bed prime:   $4 M                      and Sustainability Guidelines.
              Per Sq M:  $8,000 Sq M                   Investor diligence is set to
                                                       conclude in June 2021.
                                                                                 VALUE ADD – BRAND
                                                                                 •  Brand is key to the attractiveness, margin and success of a
                                                                                 residential resort programme
                                                                                 •  Research by Knight Frank has shown Brand can add > 25% in
                                                                                 value to a residence on a prime resort
                                                                                 •  Buyers care about hospitality, standards of service and quality
                                                                                 of design and materials
                                                                 Government      •  Brand uplift is achieved through:
                                                                  support
                                                                                     − Attracting a recognised best in class hotel partner for
                                                                                   service delivery and revenue earning
                                                                                     − Delivery by a first world professional developer with
                                                            Sales &                experience of remote development
                                                           Marketing
                                                                                     − Letters of interest have been secured by the following
                                                                                   operators:
                                                                    Investors
              Machangulo, Machangulo Reserve, Mozambique
              Site value:  $500,000 (2 Ha)
              5 bed prime:  $3 M
              Per Sq M:  $6,600 Sq M



            NATURAL CAPITAL, SOCIAL IMP A CT & SUSTAINABLE DEVEL OPMENT PROGRESS REPORT 2020         C3   |   156
   154   155   156   157   158   159   160   161   162   163   164