february 2017 newsletter - elements golf reserve · boy-boy lebelo has resigned in december and we...
TRANSCRIPT
Chairman Report It is great to have an opportunity of communicating with all the Owners again particularly when we have a lot of
good news and progress to share.
Firstly I would like to welcome our new General Manager on board. Ian Leach is a recognized Club Management force
in the Golfing industry and has a list of accomplishments as long as my arm behind his name. We received a number
of CV’s for this position but when we couldn’t find exactly what we were looking for we approached Ian who had
been watching our progress at Elements and when we updated him he shared our optimism for EPGR and accepted
our offer which contained performance incentives for the Club and the development.
He in turn has brought on a highly regarded Pro Shop Manager and a Maintenance Manager.
Clubhouse Key Handover Ceremony
Beatrice Grobler, representing Legacy handing over the clubhouse keys.
February 2017 Newsletter
For those of you who were not at the Owners feedback session we held at Bryanston Country Club on the 16th Feb
you will no doubt have heard that we have signed agreements and made payments to Legacy which now gives us full
ownership of the Clubhouse, golf cart parking, Hotel Stand and all of Legacy’s commercial Rights. Furthermore; Legacy
has agreed to transfer the 20 stands we need to have access to the Waterberg water. In other words the Body
Corporate now owns all the Assets and has achieved the water access we agreed and voted on the Acquisition Levy at
the AGM.
We collected R3M shy of the R9,5M we needed to conclude this transaction in its entirety but have been able to
convince Legacy to accept a “Loan Buyout” structure for the R3M which we have to repay by the end of April 2017 so
that we could show those Owners that are “late adopters” that this deal was going to happen and has happened. I
enclose a photograph above of our new GM at a key handover ceremony in the Elements Clubhouse and I know he is
hard at work busy getting it back to full operational standards.
That is the good news. The challenging news is that we have to collect the R3M before the end of April to make sure
that the Owners that have paid the levy stand a good chance of recovering their payment by selling the 84 stands that
Bushill currently own. Make no mistake we are pursuing those owners who are still holding back on their contribution
because everyone is now benefitting from the clubhouse and water we so desperately needed to make our golf course
great again but the issue is one of cash flow timing. We might only chase down the reticent payers in a few months’
time which will be too late and so we have devised a very attractive “Rights Issue” which is only open to those Owners
who have paid (or made arrangements to pay) their Acquisition levy by the end of March 2017. The Rights Issue is
intended to raise the final R3M.
In a nutshell instead of receiving 1 share in Newco (the stand holding company) for every R100 you paid into the
Acquisition Levy, you now have the opportunity of receiving 2 shares for every R100 additional payment you make
into this Rights Issue. Further this additional payment will be the first to be repaid from collections we make from the
reticent owners as well as contributions from any stands sold. As noted at the feedback session this is a very generous
offer but we want to be sure it is attractive enough to raise the short term finance we need for this deal to be as
beneficial as we planned. Our calculations show that this investment will offer a 48 times return if the stands are sold
at their minimal value and a 143 times return at the high road value both of which would make any investor drool. If
the stands are sold over an extended period of 10 years this will still provide an IRR of 19.6%
We will be issuing the rights issue information immediately following this newsletter with these calculations so please
take advantage of it and don’t rely on your neighbor to do so because everyone counts in this deal. . If we are
unsuccessful in raising the additional funds, then Bush Hill and the 84 stands will remain with Magic Breakaways
(part of the Legacy Group) and we will forgo the opportunity to recover part or all our Acquisition Levy.
Klaprops and the Cliffords Settlement and Water
Access
We have been in negotiations with the Cliffords and have the following on the table.
Klaprops will hand back all of its asset in EPGR which includes 5 Corporate stands (divisible into 6 lodge stands each), 12
quality private stands, the pumphouse and gate stands as well as their 50% share in the golf cart parking building and
their Commercial rights. They want to hold onto 1 corporate stand and 2 private stands.
They will also give us access to pumping 100,000l of water a day from their property from their existing boreholes as
long as we put in the pipeline which we estimate will cost us about R50K.
They will also allow us to register a servitude over all the water on their farm except for 30,000l a day they need for
personal use and we estimate that we should be able to abstract upwards of 750,000l a day which will give us more than
enough water for our golf course and additional houses. They want us to pay them R100K a month for this servitude
starting the payment in 2,5 years time of R5K and increasing every 2nd month by R5k. This strange payment regime was
calculated on the basis that we should have sold at least 20 of the stands that they hand back in 2,5 years time and the
levies will then cover this cost for the water which we get access to immediately.
This proposed settlement and access to water received positive feedback at our meeting on the 16th Feb and if you
have any suggestions please feel free to drop me a note.
High speed Internet and Telephone access
The suppliers of the clubhouse Internet and telephone connections (Screamer Telecoms) have offered to install the
equipment necessary to supply the Estate Owners with high speed internet and telephone access as well provided that
there are sufficient Owners interested in taking up a connection.
They have offered an introductory launch package of:-
4mgb Unlimited download speed
R1000 Installation fee
R600 per/month
Telephone supplied
No Contract
If you would like to register some interest in this offer please contact Marilu Gomes on 072 896 3455
From the General Manager I was appointed to the position of General Manager effective 1st February. My previous experience in golf has been
managing Royal Johannesburg and Kensington Golf Club for the first five years after the merger, consulting to golf clubs
and new estates for a few years, managing the Euphoria Golf Estate, and managing golf at Zebula for the past five years.
I am familiar with conditions in Limpopo and particularly with the golf estates. The new structure at Elements offers
considerable opportunity for growth and I look forward to being part of this.
The responsibility we all have to make Elements not only succeed but flourish is huge. I am confident that with support
and help from the staff, Trustees and individual home owners we will succeed. We have limited numbers but highly
competent staff who are all motivated and willing to assist where ever they can. Please feel free to contact us at any
time to assist.
Our “to do” list is endless and we are working simultaneously on priorities but also emergencies. On this list are items
such as:
• taking over management from the Trustees and First Resorts
• taking ownership of the building and opening all the facilities
• preparing the 2017/18 business plan
• getting the golf course into better condition
• getting the estate maintenance up to date
• managing the game
• building golf and conferencing packages
• putting a marketing plan in place
• sorting out the membership data base
• establishing a competitive pricing structure
• putting proper policies and procedures in place
• employing more staff as the business volumes dictate
• running day to day operations
I look forward to meeting as many owners and members as possible over the coming months.
Human Rights Day:
Tuesday 21st
March is Human Rights Day. We are normally closed for business on Tuesdays but we will be open for
business on this day to welcome all golfers and guests who are here for the long weekend.
New number for the
clubhouse: 010 591 2951
Staff Appointments
Narien Botha: Administrator/Pro Shop Assistant
Cellphone: 076 546 6390 E-Mail: [email protected]
Juandre Marais: Operations/Maintenance Manager
Cellphone: 079 580 7742 E-Mail: [email protected]
Ian Leach: General Manager
Cellphone: 082 892 8693 E-Mail: [email protected]
Water Report
Our IWULA application has been submitted to the Department
of Water Affairs. We had 640mm rain from beginning of
November 2016 to date and our golf course has recovered
fantastically. We must keep on saving water because we all know water is a scarce commodity in this area.
Golf Operations Report
The pro-shop is running very well. Boy-Boy Lebelo has resigned in December and we now have Tshepiso Mabena and
Narien Botha helping with golf bookings and any other golf enquiries.
Golf Course Report
The golf course has made a miraculous recovery since December
and if you have not seen it yet you are in for a pleasant surprise.
The tee box and green complexes are near perfect and certainly as good as they have ever been. The fairways are
something like 90% plus recovered. The course contractor has applied excessive wetting agents to allow the water to
penetrate down to the roots and this is what has made the recovery possible. There are still some small bare patches
and some fairways have literally thousands of weeds in-between the kikuyu grass. These weeds are been treated and
we expect them to dye back as the kikuyu strengthens through the rest of the summer months. All the black jack weeds
along the edges of the fairways have been successfully sprayed with weed killer to prevent the plants from going into
seed.
More attention has been paid to finer detail on the course and the results are already evident. For example pitch marks
on the greens are being repaired more frequently, hazard stakes have been repositioned, tee box and fairway edging is
being improved and the jaggered bunker edges are been rounded off properly. This process will continue until the
course is in the very best condition possible given the limited water resources we have available.
Water remains critical to the success of Elements and clearly we do not have enough availability to irrigate as much as
the course ideally requires. Irrigation is carefully controlled and monitored on a daily basis to ensure that literally no
water is wasted. Most, if not all water leaks on the entire estate have been identified and repaired.
Security Report
We did not have any incidents this month; the guards are alert at all times. Occupied houses are the main focus areas,
as has been fruitful thus far. We ask that if owners do send someone to their house, to please inform Elements of this,
in order to be prepared for an arrival, as we want to tighten up on strict access control. We laminated and have put up
rules of conduct into all rental houses, the idea is we hope that these renting visitors will obey these rules, or else will
be dealt with accordingly.
Operations Report
Maintenance has been taken over by Elements with 3 maintenance staff; systems have been implemented and have
already shown results, water leaks found at #204 #297 and close to the reservoir, all leaks have been repaired. Water
readings are done every morning. Clubhouse electrical faults were repaired. We purchased new mowers and will now
be more productive having the correct equipment. Action commitment logs are in place, it is prioritized and all items
will be dealt with as soon as possible. Refuse is now maintenance’s responsibility and will be done every Monday &
Friday morning between 08H00 & 12H00.
Finance Report
You would have noticed a new item being billed to sectional title owner invoices for the compulsory Community
Services Ombudsman Services (CSOS) levy. This amount of R40 will from now on be levied and paid to the CSOS as per
regulations. The new act also requires onerous reserves to be held and budgeted for sectional title schemes.
The transition of managing the Eskom accounts progressed without much difficulty, and EMRI will transfer deposits
held for those with electricity connections to EPGR where it will be kept in a separate account. Please note that all
connected entities would require a deposit paid into the EPGR account to ensure future electricity supply. The trustees
have agreed on a deposit of R6000 for new connections or where a new deposit is required.
We will be working on the new budget for 2017/8 for completion by end February 2017 and approval by the trustees.
This will include provisions for working capital requirements to sustain a new fit for purpose structure to ensure a fully
functional clubhouse and estate maintenance. A separate line item will be levied to sustain the new proposed budget
until it is finally approved at the next AGM which we hope will take place in June 2017. An appropriate increase is
unavoidable until we start selling our stands and get some more contributors on board.
Fr
Marketing Initiatives
Word of mouth is without any doubt our best marketing tool we have. We intend to offer a great golf experience to all
owners, members and guests who then will hopefully spread the good word and encourage others to come visit.
We are making contact with golf event organizers, golf organizations, golf officials, individual golf clubs and individual
golfers to invite them on site inspection visits to get a taste of the “Elements Experience” and to encourage them to
make use of the facilities.
We have begun working with specific individuals and organizations to create golf events unique to Elements. For
example the Limpopo Ladies Golf Union to host an amateur tournament here and with two lady members to host a 36
hole Ladies Classic here.
We are planning an Open Day golf event to host the “who’s who” in golf.
We are also focusing on the local and regional golfers to let them know that Elements is indeed open because there is
a perception that we are closed.
We will soon implement a new golf pricing structure which will be more market related but yet remain competitive.
We have drawn up a Standard Tour Operator contract document which will be entered into with recognised STO’s
encouraging them to bring local and international golf tours to Elements.
Most importantly of all is to open communications with owners and members to keep you informed of what is
happening and to encourage all to visit more often and to play more golf.
Liberty Waterberg Challenge:
We have been offered the opportunity to host the annual Liberty Waterberg Cycle Encounter from the 9th to the 11th
June this year. This is a high profile off road race and the organizers expect up to 250 entries. The majority of riders
will stay overnight for two nights in private homes and in a luxury tented village which will be erected on the driving
range. We have to provide three meals a day for two days for up to 350 people. Breakfast and lunch will be served in
the Clubhouse while the dinners will be outdoor braai’s on the range. A 20km track will be designed by professional
cyclists and will be cut through the property by the organizers. The Proshop and course will be open for golfers
throughout the weekend and a temporary half way station will be set up on the course. Parking will be provided for all
golfers to the left of the driving range. The event will be televised on Super sport and will give huge exposure to
Elements.