The executives have had extensive experience in the development of hospitality real Estate, having pioneered the Sectional Title Hotel Scheme in 1994. These developments include, Kapenta Bay, Alpine Heath, Greenway Woods and Ocean View Hotel. More recently specialist lodges and hotels, including guest houses have been developed very successfully for their respective owners. Our hospitality division will focus on these opportunities in respect of hotels and focus on the sale of Guest Houses in our specialist areas only.
Development History:
KAPENTA BAY:
It took a well earned vacation at the end of 1993 for Johnny Ray to INNOVATE something truly special in South African Real Estate. It was during this time at Port Shepstone (a coastal town situated around 200km from Durban on the Kwa-Zulu South Coast) that Johnny Ray conceptualized the Sectional Title Hotel Scheme which is popular today. It was borne out of the theory that a vacation property was a good thing to have, but in essence it is not the best “asset” to have when one considered that for only 2 weeks of the year it was actually utilized and the rest of the year was a subsidy. The trick was always figure out how to make the vacation home pay for itself.
From this thought, Johnny Ray perceived that it would take something more than just being a “holiday home” to make it work and the property would have to take on a more commercial nature to make it work. If the property was part of a “hotel” environment then this could work. But the question was “what would make people come to the hotel year round?” The answer to Johnny Ray was to have a hotel with a state of the art conference facility that would be a feature of the hotel, and if the hotel was located in a location that would require overnight stays, then this would work perfectly.
This is where Port Shepstone came into play as it was far enough away from Durban to make it a good overnight venue and also close enough to other attractions, like the Wild Coast Sun (30 minute drive away) to make it viable. And thus the concept of the Sectional Title Hotel was born, and the first of its kind – as well as being the first hotel to be built in South Africa in a decade – was to be built in Port Shepstone.
Partnering with a Murray and Roberts subsidiary, Kapenta Bay was officially launched in the Property Section of the Sunday Tribune on 22nd May 1994, and comprised of a hotel with 50 suites and a state of the art Conference Centre. Each suite was made up of 3 bedrooms, 2 bathrooms, kitchen and living room and went on sale at the now bargain price of R349 000.
What also made this concept unique was the fact that each purchaser would sign a Rental Pool Agreement in addition to the Purchase and Sale Agreement. Here the purchaser would let the management company utilize the unit for purposes of placing it in the available units in the hotel for the period when the owner did not use the apartment. The nett proceeds after management and running expenses were deducted would then be distributed back to the owners, who would use this subsidy to offset their monthly bond payments.
Another innovation in this property scheme was the fact that SARS would recognize the units as being a “Commercial Rental Establishment” which, depending on the vehicle in which the asset was purchased, would allow for the VAT input claim on the full purchase price.
To close out the concept property was to tie in a good hotel operator, and this is where Johnny Ray partnered up with Three Cities to do the hotel management.
From here 2 more of the developments were done with the same partners in 1995/1996, Alpine Heath in the Northern Drakensberg, Kwa-Zulu Natal and Greenway Woods in White River, Mpumulanga.
ALPINE HEATH:
Alpine Heath was modeled on a Swiss Alpine Village where the “Business Areas” would be nestled in a Swiss Village which would include a Chapel! 50 Chalets would then be spread over the surrounding country side. The location for this resort was perfect as it almost bisected the drive from Johannesburg to Durban, making it an accessible conference and getaway venue for both customers from Johannesburg, Bloemfontein and Durban.
GREENWAY WOODS:
White River was the 3rd installment in the Trilogy which would complement the beach and mountain theme with a “game park and golf” feel. Located in White River near the Kruger National Park and near an 18 hole golf course, Greenway Woods comprised of 50 sectional title units as well.
During 1996 with these 3 developments under his belt, Johnny Ray was keeping more of a closer eye on the Tourism market in general as his shift in focus to Sectional Title Hotel developments meant that he was involved not only in Real Estate but Hospitality & Tourism as well. And in the New South Africa as was the phrase back in the 90’s, all signs were pointing to Cape Town as the place to be as far as Hospitality and Tourism were concerned.
PENINSULA BAY HOTEL:
Venturing out on his own, Johnny Ray teamed up with a local Capetonian Real Estate developer, and in the latter part of 1996 launched the Peninsula Bay Hotel in the Strand 45km outside of Cape Town. The Peninsula Bay Hotel was a marked upgrade from the previous properties which were all in the 3 – 4 star range. The Peninsula Bay Hotel was comprised of 98 suites (studios, 1 bedroom and 2 bedroom) and 2 Penthouses. The obligatory state of the art Conference Centre was a highlight of the Hotel. Completed at the end of 1997 and opening officially in 1998, the 4 star Peninsula Bay Hotel was a flagship of the Strand Beachfront, which today boasts an array of Multi Million Rand beachfront developments.
|
