Big 5 Game Reserve Prospectus PRINTED FINAL

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FOREWORD


This document serves to illustrate an investment opportunity that will be
instrumental in helping kick-start one of the most significant and inspirational
community conservation initiatives ever undertaken in recent South African
history.

Benchmark comments of its cultural, historical and wildlife implications have
repeatedly been aired by government officials, planners, private business,
ecologists and conservationists around the emerging dynamics of this ‘Umfolozi Big

5 Game Reserve’ (‘Big 5’) development in KwaZulu-Natal, South Africa.

The ‘Big 5’ centres on the collective decision of five Zulu
Three investor imperat ives Chiefs to apportion large swathes of their traditional
of the ‘Big 5 ’ landholdings for conservation purposes and incorporate
this land into Africa’s oldest game reserve, the
 Security of tenure
Hluhluwe-iMfolozi Park (HiP).
 Public private partnerships (PPP)
 An unprecedented expansion of a The historical, cultural and wildlife implications are
conservation and cultural dynamic unprecedented. It offers an enlarged wildlife footprint,
within the oldest and most historic critical for both the migration and breeding dynamics of
game reserve in Africa. all wildlife, but most especially the endangered Black and
Southern White Rhino species.


Crucially, the developer (Inprodev) has structured this investment opportunity

around three investor imperatives:

 Security of tenure
 Public private partnerships (PPP) and
 An unprecedented expansion of a conservation and cultural dynamic within
the oldest and most historic game reserve in Africa.



‘SENSE OF PLACE’

This ‘Sense of Place’ – the overall location of the ‘Big 5’- represents a critical
ingredient in the overall investment package.

As stated, HiP and its larger surroundings encapsulate the
oldest Zulu hunting grounds and the heart of the Zulu nation.

It is Africa’s oldest game reserve established in 1895; the site
of the location of the first ever Wilderness area established
……….. investors will in Africa in 1958 and home to the internationally renowned
effectively become Wilderness Leadership School and its global wilderness trails.

part of the birth place HiP holds one of the largest concentrations of White and
Black Rhino, Elephant and Lion in South Africa.
of the Southern

White Rhino. It was here that the world renowned ‘Operation Rhino’
project of the early 1960’s was carried out where the
Southern White Rhino was saved from extinction in the early
1960’s, by amongst others, the internationally renowned
conservationist, the late Dr Ian Player.

This extraordinary feat saw the first rhino anaesthetisation and capturing
techniques perfected and later the translocation of these iconic beasts
throughout Africa, the UK and the USA.

(It’s moving to think that every Southern White Rhino in the world
today originates from this land in and around HiP; the land of the
emerging ‘Big 5’)

HiP’s conservation status holds inestimable global conservation and bio-diversity
value. The greater territorial expansion offered by the ‘Big 5’ project is being
heralded in all quarters as the crucible around which HiP will become one of the
great wildlife destinations of Africa and second to the Kruger National Park in
overall extent.

To further add spice to the overall location of this ‘Big 5’ territory, the land will
ultimately encapsulate the oldest Zulu hunting grounds dating back to the late
18thC, in effect a place revered for its wildlife and, as such, conserved as a
sanctuary by Zulu Royalty.

The region offers the most profound insight and experience
into Zulu culture.

…an electrifying
shift has taken
place in
traditional
thinking.























CHANGE OF HEART

Over the past five years an electrifying shift has taken place in traditional
thinking.

In essence, these Zulu Chiefs (AmaKhosi) tied into the ‘Big 5’ development, have openly stated
that traditional land-use patterns have undermined their natural environment.

Subsistence agriculture has proven mainly unproductive and erosive, quick-fix schemes such as
mining have often devastated the fabric of their communities and both poisoned and depleted
their natural resources.

Poaching and unsustainable wildlife off-take has wrecked the land’s biodiversity.

This progressive change of mind-set goes to the heart of the motivation for the ‘Big 5’; that
eco-tourism and conservation will become the economic drivers for the upliftment of rural
people.

It’s instructive that the South African government has heralded the ‘Big 5’ roll-out as
representing a future template for communities living adjacent to protected areas throughout
the country.

IN A NUTSHELL

The first stages of the ‘Big 5’ project have started with the signed
endorsement of three Zulu Chiefs (iNkosi BS Mthembu; iNkosi PC
Biyela and iNkosi EB Zulu), while two others will follow suite in
earmarking their own land for inclusion into the ‘Big 5’.



As a starting point, their

collective allocations of

land will amount to an

additional 15 300ha



This land will be fused with - and thereby substantially enlarge - the
conservation footprint of Hluhluwe-iMfolozi Park (HiP), which at
present amounts to 96 000ha.

This offers an unprecedented These Chiefs have
opportunity to further stock
‘HiP’ with additional game expressly rejected
(including animals belonging to numerous ‘quick-fix’
the ‘big five’) and most
significantly, offer a larger commercial and
territory suitable for the employment promises
breeding and roaming of both
offered by industrial
the White and Black rhino
species. ventures, as

(This latter opportunity cannot “destructive of our
be overstated considering the
land’s ecology and
ongoing poaching threat and
the diminution of private water, threatening our
ownership of rhinos).
communities social and
Significantly, the land
cultural integrity as well
belonging to the ‘Big 5’ has
been secured by the as the wildlife that our
Ingonyama Trust, the land best supports ”.
corporate body established in
law and registered owner of
various pieces of land belonging historically to the Zulu Kingdom
(dating back to various Zulu kings).

The Ingonyama Trust has signed a 40-year lease agreement with
the developer with a view to extending this to 99 years.

SIGNED AND SEALED

Following its early demarcation, perhaps the most
salient feature of the ‘Big 5’ project for investors is
that it offers security of tenure.

The development has been supported by signed agreements
amongst all relevant role players that have cemented and
endorsed the establishment and vision of the development.

Most notable of these include:
























Two private operators have already signed their
respective agreements to rent and operate the two
lodges. These are 1.The Mantis Collection (who originally
started Shamwari Game Reserve in the Eastern Cape)
and 2.Nottens (who are situated in Sabi Sands that
adjoins the Kruger National Park). Both operations have
been in the hospitality and eco-tourism industry for more
than 30 years.

The Ingonyama Trust, the corporate body established in
law and registered owner of various pieces of land
belonging historically to the Zulu Kingdom (dating back to
various Zulu kings), has endorsed the ‘Big 5’ project and
signed a 40-year lease agreement with a view to
extending this to 99 years.

The ‘Big 5’ development company
(Inprodev) has established a Community
Conservation Trust (Umfolozi Big 5 Trust)
to maximise the eco-tourism potential and
Perhaps the most salient
thereby assist in creating employment for
the local communities. The Trust has been feature of the ‘Big 5’
structured to accommodate the inclusion project for investors is
of additional land where the tribal
authorities hold 80% of the shareholding. that it offers security of
Inprodev holds the business sub-leases tenure
where the Umfolozi Big 5 Trust receives a
community levy, which is distributed back
to the community.

The provincial KwaZulu-Natal, Department of Economic
Development, Tourism and Environmental Affairs has
granted its Environmental Authorisation for the project,
thereby approving the necessary Environmental Impact
Assessment and Environmental Management Plan for the
‘Big 5’.
































An agreement has been signed and ratified by Inprodev,
the Umfolozi Big 5 Trust, the Ingonyama Trust and the
regional conservation organisation Ezemvelo KZN Wildlife
to fuse and thereby incorporate this land into HiP

Ezemvelo KZN Wildlife has wholly endorsed the project
and signed a Memorandum of Approval (MOA) that will
ensure their management of the enlarged
Hluhluwe-iMfolozi Park ( HiP)

All plans for the proposed infrastructural needs of the
project have been approved and signed off by the
relevant KwaZulu-Natal local municipalities

All commercial zoning, engineering, geotechnical,
environmental and architectural considerations have
been concluded and ratified

Two of the largest and most influential conservation
NGO’s in South Africa - Worldwide Fund for Nature
(WWF) and the Wilderness Foundation - have heralded
the ‘Big 5’ project as “one of the most fundamentally
progressive developments in the global quest to ensure
environmental protection through engaging community
participation and support”.

INVESTORS BENEFITS PLUS



A t this preliminary stage, the ‘Big 5’ will incorporate a total of
roughly 15 000ha of land, which includes 17kms of river frontage
and a 37km boundary with the Wilderness area of ‘HiP’.

The Mthembu Lodge (Nottans) and Biyela Lodge (Mantis
Collection) development comprises 3,800ha, held under lease,
whilst there is an additional 2,180ha of exclusive traversing
rights along the Wilderness road.

Occupants of both will have walking access to the 30,000ha
wilderness area as well as traversing rights to the entire
96,000ha ‘HiP’ Game Reserve.

Investors will have the right to occupy the lodges for a specified
number of days per annum. The operators Mantis Collection and
Nottens will use the two, two-bedroom self catering units as an
overflow. These units will be linked to the two main lodges that
are now under construction.


Investors are encouraged to participate with the local
communities and familiarise themselves with the workings of
tribal systems. In saying this, the ‘Big 5’ project offers both an
unprecedented insight into the history of the Zulu Kingdom as
well as the critical need for community upliftment.

The first expansion phase is projected to establish 284 jobs for
the construction component whilst a further 173 more
permanent jobs will result.

In order to consolidate and realise this project,
various matters are currently being addressed, Investors will also have sole
such as erecting 48kms of fencing (all fencing has use of two, two-bedroom
been acquired and to date 20km has been erected), self catering units that will
the improvement and provision of various roads be linked to the two main
and the building of ranger camps. Once fencing is lodge that are now under
complete, the fencing on HiP will be dropped and construction.
thereby fused with the ‘Big 5’ tribal land.

Further critical considerations include the training of local
labour to be employed in various capacities for the two
proposed lodges and the establishment of local community
projects such as providing market gardens to supply the ‘Big 5’
operation as well as other eco-tourism and business outlets.



PHASE 1: INVESTMENT DETAILS

INVESTMENT PROPOSAL

The developers (Inprodev) are seeking two separate investments of $3 175 000.00
(Mthembu Lodge) and $5 200 000.00 (Biyela Lodge) for a 50% stake in either, or both
of, the two luxury 5-Star lodges to be built.
Inprodev holds the sub-leases for these lodge developments from Ezemvelo KZN
Wildlife, the Umfolozi Big Five Trust and the Ingonyama Trust for traversing rights.

These lodges are:

1. Mthembu Lodge

This is a 22-bed, 5-Star lodge on the banks of the White Umfolozi River. The lodge is
situated adjacent to the 30 000ha Wilderness section that forms part of HiP’s overall
96 000ha territory.

(Established by the late, famous Dr Ian Player, this was the first Wilderness area to be
proclaimed on the continent of Africa).

This lodge comprises:
1. The main lodge facility with pool.
2. Seven individual 2-sleeper villas.
3. Two double room / 4-sleeper villas.
4. Living quarters for management and staff.
5. Garaging and administration.
6. A SPA

This lodge will be powered by solar, gas and generator. It will be supplied
with borehole water.

2. Biyela Lodge

This lodge comprises 32 beds (of a potential 48-bed development) on the banks of
the White Umfolozi River overlooking a flood plain.

This lodge comprises:
1. Main Lodge facilities with pool.
2. 12 individual 2-sleeper villas with a pool.
3. Two double 2-sleeper villas with a pool.
4. Living quarters for management and staff.
5. Garages & administration.

This lodge will be powered by solar, gas and generator. It will be supplied
with borehole water.

RETURN ON INVESTMENT

Return on investment is dependent on lodge occupation and also dependent
on the rates charged by the operators.

The rental is calculated as a percentage of turnover and escalated over a
3-year period to a maximum of 25% of turnover.

Occupancy has been estimated at 40% in year 1 to 60% occupancy in year 5.

(It should be noted that a 3-star lodge, Rhino Ridge, in the northern part of
‘HiP’ has more than doubled their rates over an 18-month period whilst
commanding 80% occupancy).

Based on conservative estimates, return on investment is expected to vary
from 2.5% in year 1 to 11.28% in year 5.

AFRICA

















South Africa





















EXPANSION OF ‘BIG 5’

In the short term, ‘HiP’ will effectively have its land mass expanded by a further 15 000 hectares.

As the ‘Big 5’ project advances, ‘HiP’ will stretch as far as the existing Opathe Game Reserve
outside the town of Ulundi.

Ultimately, then, the development will link HiP to Opathe Game Reserve and Thula Thula
Game Reserve creating a biosphere of approximately 60,000 hectares.

Its momentum is already being supported by the ongoing amalgamation of other wildlife land in
its immediate vicinity.

Both the Thula Thula and Royal Zulu game reserves
are in the process of consolidating a number of Eventually, the
existing government farms. consolidation of this

land will witness HiP
Within this greater Royal Zulu Game Reserve, the
‘Big 5’ envisions the further incorporation of this expand its footprint
8 000ha. from its present

Eventually, the consolidation of this land will witness 9 6 000ha to 155 000ha.
HiP expand its footprint from its present 96 000ha to
155 000ha.

CURRENT

PROJECT

Ext 2
Hluhluwe-iMfolozi Park
Hluhluwe-iMfolozi Park
Black Umfolozi river

Wilderness Area

EXPANSION
Ext 2
PROGRAMME
White Umfolozi river
Ext 2
Ext 2
Entrance Ext 2
Ext 1

Traversing Rights Black Umfolozi river

Hluhluwe-iMfolozi Park

Ext 2
BIYELA LODGE
White Umfolozi river
Wilderness Area
Ext 2 MTHEMBU LODGE
Opathe Game Entrance Ext 2
Reserve Ext 1
Extension 3
Ext 3

Royal Zulu
Thula Thula

LODGE SITE






INKOSI MTHEMBU

INKOSI BIYELA

LODGE SITE

BIYELA

LODGE

LODGE







MTHEMBU



IN CLOSING


One of the fundamental considerations for the investor in
helping realize the success of the Umfolozi Big 5 Game Reserve
project is to grasp the myriad dynamic spin-offs that will accrue
from their investment into this authentically scarce yet
profoundly rich historical context.

As mentioned, all the land being incorporated into
this ‘Big 5’ is tribal land, secured under a registered
If there was a turnkey project that lease with the Ingonyama Trust for the next 40 years.
could advance all of these This security of tenure is sheltered within the three
considerations, it would be arms of the overall investment grouping: The local
tribal authority; the Ingonyama Trust and the private
impossible to find the startling,
developer, Inprodev.
interlinking synergies that make the
It cannot be repeated enough that the expanded
‘Big 5’ the unique and gilded
wildlife territory the ‘Big 5’ project offers to
opportunity that it is. incorporate will play a pivotal role in sustaining and
growing the world’s endemic but highly threatened
Southern White Rhino species.

But perhaps there is something even more meaningful than all
of this detail. It would not be lost on anyone that a financial
investment of this nature will help fulfil the essential faith that
these Zulu chiefs have placed in private enterprise: That by
foregoing traditional land-use practices and instead bravely
giving up their land for conservation purposes, they have
sacrificed their traditional beliefs on the anvil of the market
place.

The ‘Big 5’ surely represents much more than a return on
investment, however buttressed and secure it may be in
private partnerships and law. The formula of Conservation
engaging with rural people to protect and expand wildlife
territory and support sustainable environmental foot prints is
an established global worldwide model for nurturing the
globe’s diminishing natural ecosystems.

Finally, investors will appreciate that only vast, unpopulated
community land and marginal farming areas lie in the way of
expanding the HiP footprint right the way up to and including
Opathe Game Reserve and what is termed the ‘eMakhosini:
the Valley of the Kings’ area. This region represents the birth
place of the Zulu nation, a site of extraordinary cultural
heritage. It is unsurprising that so much political and academic
opinion heralds this place as South Africa’s next World
Heritage Site.

INPRODEV PROPRIETARY LIMITED

RSA registered private Company 1994/000823/07

Managing director Barry Michael Theunissen

Shareholder BMT Trust
RSA registered Trust 1487/98
BMT Trust owns 100% of the ordinary shares in the Company and
has a loan account with the Company through which the entities
trade during the ordinary course of business

Structure of Company to accommodate third party investors into the Lodges:

Preference shares will be issued in various classes
i.e.: Class A, Class B etc.
Each class will have a preference share Trust Deed containing all of
the terms and conditions, rights and obligations relating to that
class of shares, which will surround itself with the rights of
occupation and indirect ownership to a particular Lodge, and the
building value that has been improved on that portion of the
property on which the Lodge is situated i.e. R100 M.
i.e. Mthembu Lodge will be linked to Class A preference shares .

The Trust will sell a 50% of its Class A preference shares (relating
to the rights of occupation to Mthembu Lodge) and the purchaser
will then own 50% of the Class A shares and by virtue of the
Preference Share Trust deed & occupation agreement, he will own
the right to 50% of the asset value of Mthembu Lodge and the
Mthembu Lodge trading business.

The monies of USD will be an asset of BMT Trust, which the Trust
can utilise through its ordinary loan account, to finance the
building of the next Lodge and so the circle continues.

The completed picture would depict a number of preference share
classes, each of them linked to a particular lodge and the fruits of
the lodge and the right to occupy the lodge, for a specified
number of days per annum will be the entitlement of the
purchaser through his 50% share in that Class of shares.

INPRODEV PTY (LTD)

Inprodev has developed more than 19 000 low income houses for the South African
government’s Human Settlements department.

It was also instrumental in formulating the government’s Rural Housing Policy for the
Human Settlements department.

In addition, Inprodev has developed luxury housing, rural shopping centres and flats. It
recently completed an 11-unit Eco Secure Estate (‘One Everton Rd’) in Kloof,
KwaZulu-Natal designed to operate ‘off the grid’.

iNkosi BS Mthembu iNkosi PC Biyela iNkosi EB Zulu
























CONTACT DETAILS

[email protected]
Tel: +27 31 767 4381
Cell: 082 652 4624

ADDRESS
Unit 7
Seven Acres Estate
63 Everton Road
Kloof
KwaZulu-Natal
South Africa
3610

+27 (0) 76 154 6734