Web Ref No RNC410

Ownership:
The property, is owned by Bellaqua (Pty) Ltd, a registered legal entity. Bellaqua is a VAT-registered company with two shareholders holding 70% and 30% shares respectively. The farm is bond-free, and the sale of shares in Bellaqua includes the transfer of loans to the new owner. Bellaqua is the registered owner of three portions of land, namely Portion 10, Portion 9, and Portion 8, as confirmed by the attached Windeed search.

Revenue Streams:

1. Rental Income from Lodge: The property includes the Itaga Luxury Private Game Lodge, which generates rental income for Bellaqua. The lodge operator/tenant pays Bellaqua a rental equal to 10% of their total monthly revenue, with a minimum amount. The lodge currently consists of eight rooms, but Bellaqua has the right to increase the lodge's capacity to 20 rooms. The tenant is willing to sign a new lease or renew the current lease with a condition allowing the tenant to continue renting the lodge if the farm is sold to a new owner.

2. Rental Income from Airbnb: In addition to the lodge, there are two Airbnb properties on the farm: The Sanctuary (the main shareholder's house) and the Farmhouse (the manager's revamped house). The income from these properties is received personally by the shareholders and is not reflected in Bellaqua's financial records.

3. Traversing Income: Bellaqua grants traversing rights to members of Zebula, Boschpoort, Mabalingwe Game Reserve, and individual homeowners in the Mabalingwe Nature Reserve. These individuals can traverse the entire Bellaqua property for game viewing and game management purposes. Traversing fees and conditions are determined by Bellaqua, and all invoicing is handled through the Mabalingwe Common Property Association.

4. Income from Grazing Fees: Bellaqua receives annual grazing fees from Ludum Game Consortium, which owns all game in the Greater Mabalingwe Nature Area. In exchange for grazing rights, Ludum pays a predetermined rate per hectare to Mabalingwe Landowners, including Bellaqua. Bellaqua is responsible for maintaining their portion of the fence.

5. Cell Phone Tower Agreement: Bellaqua does not receive income from the cell phone tower located on the property. Instead, both shareholders' dwellings receive monthly free Wi-Fi as part of the agreement.

Operating Costs:
The farm's operating costs consist of various expenses, including farm overheads (assessment rates, employee costs, animal-related expenses, insurance, motor vehicle expenses, repairs & maintenance, and utilities) and administrative expenses (accounting & audit fees, manager fee, bank charges, and IT expenses). Average monthly operating costs details are available on file.

Current Year Management Accounts:
Management accounts for the year ended February 28, 2023, are available on file and will be shared with qualified buyers. The income generated from the various revenue streams has been sufficient to cover the farm's annual running costs in the past two financial years.

Workshop Inventory (Moveable Assets and Maintenance Consumables):
A detailed workshop inventory list is available, including tools, equipment, home maintenance consumables, garden tools, farm vehicles, and large equipment. Personal assets of the shareholders are not included in the sale of shares.

Development Rights:
Bellaqua has development rights for the existing lodge with eight chalets and was granted additional rights to erect 12 more chalets. Site development plans and designs must be submitted for approval by the Municipality before construction can commence. An environmental authorization may also be required.

Right of Way Servitudes:
The property has a registered negative servitude that prohibits development on the land portion between Bellaqua and the main tar road without Bellaqua's consent. Copies of the right of way servitude in favour of Bellaqua are also available on file.

Zoning:
Bellaqua is zoned as agricultural, allowing for additional uses such as a lodge with a maximum of 20 chalets and ancillary uses.

Water Reticulation:
Bellaqua's water reticulation layout plan is available, providing details of the water distribution system on the property.

Internal Road Infrastructure:
A layout plan of Bellaqua's internal road infrastructure is available, illustrating the road network within the property.

Assessed Loss:
Bellaqua has an assessed loss as confirmed by the 2021 IT 34, indicating potential tax benefits. A copy of the assessment is available on file.

Webcam Photos:
Webcam photos captured at various drinking holes on Itaga Game Farm showcase the abundant wildlife present on the property, including leopard, elephant, rhino, hyenas, honey badger, kudu, gemsbok, and more. Additional photos are available on file, highlighting the diverse wildlife population.