Anglo American Farms (Amfarms), a wholly owned subsidiary of Anglo South Africa Capital and part of the global Anglo American Corporation, said on Thursday it has sold the Boschendal wine farm, located outside Franschhoek in South Africa’s winelands, to a consortium of investors with a 30% empowerment stake, with effect from October 31 2003 for a total consideration of R323-million.
The consortium is made up of Citation Holdings SA, a Luxembourg-registered company, which will acquire 70% of Boschendal; and Kovacs Investments 608, a broad-based empowerment group chaired by Chris Nissen, which will acquire the remaining 30%.
Announcing the sale, Amfarms said the consortium, headed by Clive Venning, has bought the assets of the estate and will take over all existing employees. In the first phase of the sale, the consortium will acquire 915ha, which includes various historic homesteads, the vineyards and winery.
In the second phase, the consortium will, within a 24- to 36-month time frame and subject to planning approval, take ownership of related farms adjacent to Boschendal. These prime properties covered approximately 1 327ha.
During the first phase, new Boschendal CEO Venning said the tourist businesses, existing wine production and distribution will be optimised and streamlined.
“Boschendal” as a wine brand will be elevated through the release of premium label wines, a focused export drive and improved distribution. Other plans include gradually increasing the percentage of red-wine sales and growing local sales volumes.
In the second phase, Boschendal will be developed into a luxury residential estate consisting of a limited number of gentlemen’s estates; a low-impact, eco-friendly, high-value residential estate; a retirement village; and a boutique hotel.
Michael Spicer, chairperson of Amfarms, said: “We are delighted after a rigorous two-year process to have concluded the sale of Boschendal in such a satisfactory manner. The consortium meets our criteria and we believe they are well-positioned to retain the cultural and agricultural integrity of the estate.”
Anglo American has been looking to rationalise its non-core operations over the past few years and it was in this context that the decision was made to sell Boschendal. However, the group said, it was paramount to conduct the sale process in such a way as to safeguard the heritage of Boschendal and promote the sustainability of the estate in its setting in the Dwars River valley.
Anglo American has also entered into a cooperation agreement with the consortium on shared services for a period of a year in the interests of a smooth transition. Notwithstanding the sale of Boschendal, Anglo American will be retaining its other wine estate, Vergelegen.
Boschendal is one of the oldest wine producers in the New World with a French viticultural heritage dating back to 1685 when the farm Bossendal was granted to French émigré Jean de Long by the governor of the Cape, Simon van der Stel.
Clive Venning, the new CEO of Boschendal, said: “It is an honour to take over the custodianship of one of South Africa’s oldest and most-loved wine estates. In the tradition of the visionaries who have been part of Boschendal’s heritage we intend to entrench its historic position and maximise its brand. We intend to place the historic Boschendal manor house and werf in trust, thereby ensuring its preservation for future generations.”
Chris Nissen, chairperson of Kovacs Investments, said: “We see our involvement in this transaction as a significant milestone in the empowerment of the wine industry and key to the upliftment of the community of the Dwars River valley.”
Venning added: “The plan for the development of Boschendal, which is supported by Anglo American, is not aggressive and is based on an ‘as is’ philosophy. What will make the estate attractive to investors is the fact that we intend to retain not only the footprint, but also the historical and agricultural integrity of the estate.
“Buying into Boschendal will be buying a slice of history and as such we would like South African investors to be the primary participants.”
Venning’s previous developments include Pezula Private Estate, Sparrebosch golf course and hotel in Knysna and the Sun River/Borrowdale Brooke Country Club in Zimbabwe. — I-Net Bridge