Abstract:

Opportunities for generating income and extending the wildlife estate

Michael Eustace

1) Selling private non-commercial leases on the parks estate to generate income. Private buyers would pay, say, R3 million to secure an half hectare site on which to build a lodge which they could use for 25 years.  The investors would finance the cost of the building and services in addition to their lease costs.  The lodge design would need to comply with certain standards.  The investors would have traversing rights.  At the end of 25 years the lodge would become the property of the park.  There would be several of these lodges in a “village”.  If the parks estate were to accommodate 100 of these leases, and the capital was placed into an endowment fund to earn 10% p.a., there would be income of R30 million p.a. ad infinitum.
2) Buying options on buffer zone land and then on-selling those options to purchase, at a profit, to investors. If land is incorporated under some contractual arrangement into a park it can double the value over a period of time.  If Ezemvelo were to obtain options over 100,000 hectares of land surrounding their parks which had a value of R5,000 per hectare prior to incorporation, the value add would be a further R5,000 if it were fenced into the park.  In theory, Ezemvelo could generate profits of R500 million on this transaction.  Investors may need to have traversing rights.
3) Forming a National Trust funded by philanthropists, as happens in the UK. The purpose of this Trust is to invest in and manage conservation hotspots.  The current trend is away from leaving children large amounts of money and philanthropists are looking for long term tangible investments that help the environment and make the world a better place.

Presentation Topic

Opportunities for generating income and extending the wildlife estate

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