Projectprop, which owns Leloko Lifestyle and Eco Estate in Hartbeespoort, is seeking a solid new buyer, or buyers, for this idyllic estate following a resolution by the shareholders to disinvest in the company through the sale of all of their shares.
Leloko is a mixed-use development comprising residential, commercial, retail and educational facilities on 481 hectares, and is worth about R300 million, according to a recent independent valuation.
‘The business model of the company has been to sell individual stands to people who aspire to build their homes in Leloko as we as to the developers who wish to build sectional title units,’ says Mmule Lebeloane, director of Projectprop. Also, the current business model does not unlock all the potential value that the asset offers. Expanding the business model through the selling of business packages will release the latent value, says Lebeloane
‘We are seeking a buyer or buyers – developers or investors – with the capital to invest in this outstanding development, and who can adopt a more robust building package model similar to competing estates in the area,’ she says.
The residential component of Leloko Estate is fully developed, with all the requisite water, electricity and road infrastructure in place. There are nearly 200 homes built, and about 400 stands to be sold, some as large as 1,200 square metres. We have seen buyers who want even bigger stands, buying adjoining stands and consolidating them into one.
Homes vary from two-bedroom sectional title apartments to full title homes. ‘The plan was to get to 350 homes built – the recommended minimum for a clubhouse – and eventually have 700 homes on Leloko,’ says Lebeloane.
The school development project is well advanced. ‘Two years were spent conceptualising the school development, which was renowned education consultants and a recognized engineering company. The project is at a capital raising stage,’ says Lebeloane.
The retail and commercial block stands are also available for sale and have been zoned accordingly.
Location is one of the strongest selling points of Leloko, as it is ideally situated on the slopes of the Magaliesberg mountains, and the banks of the Hartbeespoort Dam, but within easy access of the N4 Platinum highway to Rustenburg, Pretoria and Johannesburg.
‘Also, Hartbeespoort has been steadily shifting its profile over the last few years from mainly a holiday/weekend destination to a primary residence village in the countryside, as it is only a 40-minute drive from Johannesburg and Pretoria, and only 30 minutes from Lanseria airport. Thus many of the higher-priced houses in estates like Pecanwood Golf Estate, Westlake Estate and Caribbean Beach Club Estate now serve as primary residences for their owners,’ says Lebeloane.
‘Our market is mostly from Pretoria and Johannesburg, and many are seeking to make this their primary residence, commuting from work in town but still enjoying the country lifestyle that Leloko offers. At this stage we have a good mix of primary residence buyers and investors,’ says Lebeloane.
The new R512 road, which connects the west of Hartbeespoort Dam to the N4 to Rustenburg in order to divert long-distance travellers from local traffic, runs through Leloko Estate, so a lodge or hotel would be ideal, and might also be a consideration for a new owner, says Lebeloane. ‘We were also looking at having a fuel station built, so we started prospecting the idea with one of the energy companies,’ she says.
Facilities at Leloko Estate currently include an Olympic-sized swimming pool overlooking the dam, braai areas, children’s play areas and fishing spots. There are also jetties and boat-launching facilities.
A third of the estate is reserved as greenbelt, which supports abundant game and birdlife. ‘Nature lovers have a lot to do here. There are plenty of water activities on the dam, and sunset cruises are offered by many of the resorts. So it’s a holiday-style lifestyle, yet close enough to the cities to commute to work,’ says Lebeloane.
Hartbeespoort is home to some good schools, including Pecanwood College (which offers schooling from preprimary to Grade 12, plus boarding) and Mountain Cambridge School, as well as upmarket shopping malls and medical centres.
Shopping malls in Hartbeespoort include Harties Mall, Village Mall, Chameleon Village and The Mountain Lake Centre. The Magaliesberg area is also ideal for dining out at the many local restaurants and pubs, including two at the top of the longest mono-cable in Africa – a fabulous cable car ride that offers spectacular views from the top as far as Pretoria, Rustenburg and Randburg.
The Magaliesberg mountains, which are the oldest in the country and one of the oldest ranges in the world, enjoy global acknowledgement by UNESCO as a Biosphere Reserve.
The disinvestment or sale of the equity, or sale of Projectprop, is to be concluded on or before 31 January 2020.