DISTINGUISHED FOR SALE BOUTIQUE HOTEL

BY MAKARANGA AUCTION LODGE, 1A IQWABABA ROAD,

WEB#: AUCT-000234 | www.in2assets.com ADDRESS: Makaranga Lodge, 1A Iqwababa Road, Kloof, Kwa-Zulu Natal AUCTION VENUE: The Country Club, Isaiah Ntshangase Road, Durban AUCTION DATE & TIME: 23 August 2016 | 11h00 VIEWING: By Appointment CONTACT: Carl Kleinhans| 082 467 5664 | 031 574 7600 | [email protected] REGISTRATION FEE: R 50 000-00 (Refundable Bank Guaranteed Cheque) AUCTIONEER: Andrew Miller

The Rules of Auction can be viewed at www.In2assets.com or at Unit 504, 5th Floor, Strauss Daly Place, 41 Richefond Circle, Ridgeside Office Park, Umhlanga Ridge. Bidders must register to bid and provide original proof of identity and residence on registration. The Rules of Auction contain the registration requirements if you intend to bid on behalf of another person or an entity. The above property is subject to a reserve price and the sale by auction is subject to a right to bid by or on behalf of the owner or auctioneer.

CONTENTS MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318 Old North Coast Road, Avoca

CPA LETTER 2

PROPERTY DESCRIPTION 3

PROPERTY LOCATION 6

PROPERTY LAYOUT 7

PICTURE GALLERY 8

MUNICIPAL INFORMATION 27

ADDITIONAL GALLERY 28

SITE LAYOUT DIAGRAMS 30

TERMS AND CONDITIONS 32

DISCLAIMER: Whilst all reasonable care has been taken to provide accurate information, neither In2assets Properties (Pty) Ltd nor the Seller/s guarantee the correctness of the information, provided herein and neither will be held liable for any direct or indirect damages or loss, of whatsoever nature, suffered by any person as a result of errors or omissions in the information provided, whether due to the negligence or otherwise of In2assets Properties (Pty) Ltd or the Sellers or any other person. The Consumer Protection Regulations as well as the Rules of Auction can be viewed at www.In2assets.com or at Unit 504, 5th Floor, Strauss Daly Place, 41 Richefond Circle, Ridgeside Office Park, Umhlanga Ridge. Bidders must register to bid and provide original proof of identity and residence on registration.

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CPA LETTER MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318 Old North Coast Road, Avoca

In light of the Consumer Protection Act which came into effect on 1 April 2011, In2Assets would like to offer you, our valued client, the opportunity to pre-register as a bidder prior to the auction day.

South African consumers are now amongst the best protected consumers in the world and the purpose of the Act is to promote fair business practices and to protect consumers against deceptive, misleading, unfair or fraudulent conduct.

It is compulsory that all Bidders are required to present the following documentation in order to register at our auctions (without which registration cannot take place):

1. SA Identity Document;

2. Utility bill addressed to your physical address (not older than 3 months);

3. In the event of you bidding on behalf of a company, trust or close corporation in your capacity as director, trustee or member respectively, you are required to submit a letter on the Entity’s official letterhead authorizing you to bid, sign all necessary documents and effect transfer on behalf of the Entity which must be accompanied by a certified copy of the resolution by the directors, trustees or members of the entity authorizing you to do so.

4. A special Power of Attorney is required should you be bidding on behalf of another person which must expressly authorize you to bid on behalf of that person and must include a certified copy of that person’s SA Identity Document and proof of that person’s residential address not being older than 3 months.

5. Copy of Entity’s FICA Documents

6. Vat Registration Certificate

7. Income Tax Reference Number and proof of marital status

We would like to offer you an opportunity to register prior to the auction in order to avoid the time-consuming registration process as we endeavor to make this process as hassle free and efficient as possible.

Should you require any further assistance or have any questions or queries, please do not hesitate to contact us.

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PROPERTY MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318DESCRIPTION Old North Coast Road, Avoca

General

Property Address: Makaranga Lodge, 1A Iqwababa Road Township & Province: Kloof, KwaZulu Natal

Title deed information – Property 1

Title Deed Number: T779/2002 Registered Owner: Makaranga Charitable Trust Title Deed Description: Erf 1467 Kloof Extent: 6 682 m²

Title deed information – Property 2

Title Deed Number: T779/2002 Registered Owner: Makaranga Charitable Trust Title Deed Description: Portion 2 of Erf 1478 Kloof Extent: 4 439 m²

Title deed information – Property 3

Title Deed Number: T779/2002 Registered Owner: Makaranga Charitable Trust Title Deed Description: Portion 3 of Erf 1478 Kloof Extent: 1 800 m²

Title deed information – Property 4

Title Deed Number: T779/2002 Registered Owner: Makaranga Charitable Trust Title Deed Description: The Remainder of Erf 1828 Kloof Extent: 1 801 m²

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PROPERTY MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318DESCRIPTION Old North Coast Road, Avoca NATAL (continued)

Title deed information – Property 5

Title Deed Number: T779/2002 Registered Owner: Makaranga Charitable Trust Title Deed Description: The Remainder of Erf 1970 Kloof Extent: 3 897 m²

Title deed information – Property 6

Title Deed Number: T779/2002 Registered Owner: Makaranga Charitable Trust Title Deed Description: Erf 2151 Kloof Extent: 5, 1882 Hectares

Title deed information – Property 7

Title Deed Number: T779/2002 Registered Owner: Makaranga Charitable Trust Title Deed Description: Erf 2705 Kloof Extent: 6 139 m²

Title deed information – Property 8

Title Deed Number: T779/2002 Registered Owner: Makaranga Charitable Trust Title Deed Description: The Remainder of Erf 3018 Kloof Extent: 1, 2890 Hectares

Title deed information – Property 9

Title Deed Number: T779/2002 Registered Owner: Makaranga Charitable Trust Title Deed Description: Erf 3288 Kloof Extent: 3, 0396 Hectares

Total Extent: 11, 9926 Hectares (29. 6343 Acres)

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PROPERTY MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318DESCRIPTION Old North Coast Road, Avoca NATAL (continued)

Title deed information – Property 10

Title Deed Number: T35358/2003 Registered Owner: Terry Flack Title Deed Description: Portion 3 of Erf 1479 Kloof Extent: 3 488 m²

Total Extent of all 10 Properties: 12, 3414 Hectares (30.4962 Acres)

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PROPERTY MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318LOCATION Old North Coast Road, Avoca

Makaranga is a privately owned garden located within the suburb of Kloof. It is positioned north and adjacent to the King Cetshwayo Highway (). Kloof forms part of the Outer West region and is set approximately 25 kilometres north-west of Durban Central. This node is positioned at the top of Fields Hill.

The subject property forms part of an upmarket node along Iqwababa Road. Iqwababa Road runs adjacent and parallel to the M13, offering excellent exposure to passing traffic and easy access. A unique location surrounded by well-established residential suburbs. The property is bound by various residential roads namely Wuhutu Crescent, Itendele Road, Uplands Road and Iqwababa Road.

The location provides a tranquil environment and enjoys easy access to major arterial routes. The main vehicular access to the property is from Iqwababa Road which is accessed from the M13 via Everton Road. The Kloof Country Club is within a short distance as well as various shopping centres including the Kloof Village Mall. There are many excellent schooling facilities in the area which includes Thomas More College, St. Mary’s Diocesan and .

SUBJECT PROPERTY: Makaranga Lodge, 1A Iqwababa Road, Kloof, KwaZulu Natal

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PROPERTY MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318LAYOUT Old North Coast Road, Avoca

The below layout map is numbered in accordance to details and pictures from page 8 to page 15 and page 19.

PICTURE

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca

1. Pedestrian Entrance / Footpath to Reception This lodge is one of a few national hospitality establishments with Universal Accessibility grading (AU). Rocky, impassible mini waterfalls with spectacular greenery surround pathways that eventually surrounded by koi ponds with brightly coloured varieties. There is a covered drop off zone outside the main reception area. Beautiful stoned sculptures lead the way from the car park to the reception area.

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

2. Main Lodge - Reception, Lounges, Restaurants and Kitchens The large welcoming reception area leads to a relaxing lounge and an open patio for dining. The indoor Nonna restaurant with its exotic atmosphere is perfect for any occasion. A wine cellar with an adult lounge bar is positioned viewing the kitchen. A Deli and the kids play area are also positioned nearby.

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

3. Main Lodge – East Wing This single storey block comprises 11 spacious bedrooms and ensuites that consists of superior fixtures and fittings. All bedrooms open out to balconies enjoy the views of the gardens. Four of the 11 bedrooms can be utilized as family rooms as they have inter-leading doors. Administration offices are also positioned along the passage.

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

4. Main Lodge – West Wing The West Wing Block has its own access from the main driveway with under cover parking available. This double storey block comprises 11 spacious bedrooms, ensuites which consists of superior fixtures and fittings. All bedrooms open out to balconies and enjoy the views of the gardens. This block further comprises of administration offices, board rooms, and conference facilities. Most of upper floor is serviced by spacious lounge areas.

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

5. Storage Facilities / Workshops; Laundry; Ladies Staff Accommodation & Banqueting Kitchen

6. Staff Quarters with Nursery

7. Access Gate Entrance from Wuhutu Crescent, Kloof

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MAKARANGA LODGE, PICTURE 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

8. 4 x Residential Dwellings

The below pictures are residential dwellings which are occupied by senior management.

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (Continued)

9. Waterfall, Crab Pond, Blue Pond and Stone Cottages

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

Double Storey Residential Dwelling with Double Garage

Pool Area and Kids Play Areas

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

Gardens, Streams and Ponds

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

10. Main Gate Entrance Access is obtained off Iqwababa Road via manned security and electric boom gates onto tarred car park areas with ample parking and alternate over flow parking area. Some under cover parking bays are available. Various stone sculptures and greenery surround the car park areas. A mobile network tower is positioned adjacent to the main gates.

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

Makaranga Lodge Gardens has ’s largest private collection of very valuable Zimbabwean Stone Sculptures and many unique and rare species of plants.

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (Continued)

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (continued)

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca

(continued)

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (Continued)

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PICTURE MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318GALLERY Old North Coast Road, Avoca (Continued)

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MUNICIPAL MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318INFORMATION Old North Coast Road, Avoca

Municipal information

The local authority in which the properties are situated is the eThekwini Municipality. The development of the Makaranga sites are subject to the controls created in terms of the Special Zone which applies to Makaranga. The Special Zone contains unique controls in terms of land uses, bulk controls and special conditions which were created specifically for the development of the Makaranga properties. The sellers are still to provide us with confirmation of the conditions.

The 9 the 10 sub-divisions contain restrictive conditions and, more importantly, they are notarially tied together which means that no sub-division may be sold separately from the other 8. Unless the Notarial tie is cancelled, the 9 sub-divisions have to be sold as a single package.

The restrictive title deed conditions relate to, inter alia, the use of land for residential purposes only, the creation of conservation zones and various servitudes in favour of neighbouring properties and other sub-divisions comprising Makaranga.

The Makaranga sub-divisions are subject to a Special Zone, Special Zone 11 (Makaranga). In terms of free entry land uses, the following are permitted: Restaurant and tea garden; dwelling house restricted to staff accommodation; place of public assembly restricted to conference centre, associated facilities and therapy centre; residential building restricted to (sic)hotel and associated staff accommodation.

Density Controls - FAR: 0.05; Coverage: 5%; Height: 2 Storeys

The zoning of the Makaranga sub-divisions does not contemplate any further form of development other than that which currently exists.

The Makaranga properties viewed as a whole are subject to environmental restrictions. Title deeds have restrictions, example the use of Erf 3288 Kloof is for the Gardens only.

Any additional development or different form of development from that shown in accordance with Plan No. 0442/001 will require municipality approvals, motivated submissions to accompany a PDA (Planning and Development Application) application, extensive environmental assessments and approvals, municipalities DMOSS provisions and cancellation of Notarial tie (for sub-divisions), all of which is a public participation process.

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ADDITIONAL MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318INFORMATION Old North Coast Road, Avoca

Makaranga Lodge

In 1976 Leslie Riggall, 'Plantsman' extraordinaire, bought a 20 acre property in Kloof, which over 25 years he expanded to its present size of 30 acres. The Garden specializes in camellias, rhododendrons, azaleas, magnolias, orchids and bromeliads. Some of the afore-mentioned were imported from Japan, China, France and the US. A large number of Orchids are grown on trees and logs with many in the ground. The garden comprises exotic & indigenous flora. The latter come into their own in the winter months with many different types of Aloe & numerous succulents serving to attract beautiful sun birds. Erythrina trees with their red flowers also bloom when the weather cools. In summer large beds of sky blue agapanthus & hydrangeas are a delight as are the many coloured day lilies. Hundreds of clivia miniata light up the forest areas in spring ranging in colour from deep orange to pale cream.

A series of ponds flow in the natural meandering stream some of which form the focus of the authentic Japanese Garden, which delights visitors with its original stone bridges, statues and lanterns imported from Japan.

Chick and Danna Flack bought the property in January 2002 and re-named it "MAKARANGA" after the tall towering Wild Poplar trees called "Macaranga Capensis" & after the Makaranga tribe from Inyanga where Danna grew up. The Flacks created a luxury Lodge in order to try and sustain the cost of the gardens. The lodge, which is wheel-chair friendly both indoors and throughout the garden is housed in a Charitable Trust, This Not-for-Gain Trust acts as custodian of the Garden for the benefit of you, the community with the shortfall funded by the Flack Family.

Visitors are encouraged to enjoy the tranquility and beauty of this unique property. Makaranga embraces the family market. A play area has been introduced & an enchanted garden nestles in the forest. There is also a labyrinth for some real soul searching. The pool is open to all.

The garden work-force required to maintain Makaranga in a pristine condition numbers approximately 23. One of the most interesting features on view is the large collection of Shona stone carvings which art form The Flacks are passionate about. There are two Cycad areas – one promoting exotic species and the other a show-case for Cycads from the African continent, There is also a formal Italian garden which displays statues from Italy including a carved 2 meter high carrara marble copy of Michelangelo's 'DAVID'. There are several other pieces from Italy on show in the gardens.

The property is strategically positioned and further development is possible. The lodge comprises 22 rooms, with 11 rooms positioned on the East Wing more for leisure clientele and 11 rooms positioned on the West Wing for the more executive clientele. There are approximately 75 permanent staff but a total of 113 staff which amount includes casual staff and garden staff. The main market attracted to Makaranga Lodge are the corporate clients during the weeks, leisure clients and weddings in the week ends and during specials and overseas clients in the summer months. The property will be sold LOCK, STOCK AND BARREL with a list of movables / inventory available below.

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ADDITIONAL MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318INFORMATION Old North Coast Road, Avoca (continued)

Accommodation Details

Please view site plans on pages 30 and 31 below prepared by Horner Associate Architects to view extents of improvements as well as the extents of the conservation areas.

Movables List / Assets Inventory

An assets inventory schedule is available which can be requested from our offices.

Lease Details

The Sellers have provided us with lease agreements for the following three Lessee’s, however the agreements provided have expired and we cannot confirm the rentals and other lease details. The Sellers are still to provide us with Addendums to the lease agreements.

Monthly Rental Annual Rental Tenant Name Premises Occupied Expiry Date (Excl Vat) (Excl Vat) Mobile Telphone Networks (Pty) Ltd Portion of Erf 2151 Kloof R 2 500.00 R 30 000.00 TBC Health, Beauty & Wellness SPA Portion of lodge and balcony R 17 500.00 R 210 000.00 TBC WC Du Plessis Residential Home at The Annex R 4 500.00 R 54 000.00 TBC Total R 24 500.00 R 294 000.00

Comments: We are still to confirm if MTN (Pty) Ltd have their own electricity meter. The Health, Beauty & Wellness SPA tenant is liable for their own electricity expenses and the Residential home at The Annex has its own prepaid electricity meter.

Expenses

Makaranga Lodge - The assessment rates for the year 2015/2016 amounts to R 285 663.96, which equates to a monthly figure of R 23 805.33.

Residence on Portion 3 of Erf 1479 Kloof - The assessment rates for the year 2015/2016 amounts to R 45 481.00, which equates to a monthly figure of R 3 790.15.

Vat Status

The Sellers are Vat registered – Zero rate option / Going concern.

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SITE LAYOUT MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318DIAGRAM Old North Coast Road, Avoca

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SITE LAYOUT MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318DIAGRAM Old North Coast Road, Avoca (continued)

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TERMS & MAKARANGA LODGE, 1A IQWABABA ROAD, KLOOF 1318CONDITIONS Old North Coast Road, Avoca

If you are the successful bidder kindly note the following:

 5% deposit payable by the Purchaser on the fall of the hammer  10% Auctioneers Commission payable by the Purchaser on the fall of the hammer  24 Hour Confirmation period – 24 August 2016 @ 17h00  45 Day Guarantee Period  Possession on Registration of Transfer  Electrical, Entomologist and Gas Certificates for the SELLERS account

Kindly note for EFT & Cheque payments, the following applies:

Cheques need to be made out to In2assets Properties (Pty) Ltd

EFT Payments, our trust account banking details are as follows:

Bank Name : Standard Bank Account Name : In2assets Properties (Pty) Ltd Account No. : 050022032 Branch Name : Kingsmead Branch code : 040026

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1318 Old North Coast Road, Avoca

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1318 Old North Coast Road, Avoca

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1318 Old North Coast Road, Avoca

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