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UNIQUE INVESTMENT OPPORTUNITY IN PROTEA HOTEL FRANSCHHOEK OFFERS USAGE YIELD

With its cosmopolitan yet tranquil ambience, impressive array of world class wine estates and restaurants and breathtaking scenery, Franschhoek in the Cape Winelands is arguably one of world’s most popular destinations, and is also sought after among home buyers wishing to enjoy this highly desirable lifestyle.

Now a unique investment opportunity – within a prime located hospitality establishment - has arisen for those wishing to spend leisure time in this sought after Boland location while enjoying the benefits of an income generating asset.

Marketed by Pam Golding Properties, this is the only opportunity to purchase a fully furnished hotel room in an established hotel in Franschhoek – the 4-Star Protea Hotel Franschhoek, which is managed by the respected Protea Hospitality Group.

Comments Dr Andrew Golding, CE of the Pam Golding Property group: “Essentially this is an income generating asset offering attractive returns. Purchasers will obtain title on a sectional title basis – known as tenements – with these rooms forming part of a rental pool. In addition to the income yield, purchasers will be entitled to use a room in the hotel for 21 nights per annum. While in residence, owners will also have right of use of the common property and facilities of the hotel.”

Currently with 28 rooms, 45 new rooms are to be added to the Protea Hotel Franschhoek which is situated in Huguenot Street. Purchasers will have the choice of any of the 73 rooms, however, a limited number of 15 rooms are being offered to the market at present. In addition to the new rooms, the existing public areas and hotel rooms are to be upgraded. All the rooms are air conditioned and the hotel includes a bar, restaurant and swimming pool. The purchase price of each room or tenement is R1.225 million and no transfer duty or VAT is applicable.

Says Dr Golding: “This option has high appeal for leisure users with an investment focus. The destination is prime and conveniently located only an hour from Cape Town and half an hour from Cape Town International Airport and the whale watching capital of Hermanus. Of equal importance is the fact that the Protea Hotel Franschhoek is ideally placed to capture a good share of the tourism market, being a quality, value-for-money 4-Star hotel in a sought after location catered for primarily by more expensive 5-Star establishments.”

For a period of 36 months from the date of transfer each owner will be guaranteed a net rental yield of six percent per annum on the purchase price, calculated from date of registration of transfer. From month 37 onwards, the rental guarantee will fall away and the owner will thereafter receive 24 percent of gross accommodation turnover, calculated in terms of the rental pool agreement.

Issued by Gaye de Villiers


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