Riviera on Vaal HotelFor sale

Asking price R65 million negotiable depending on payment terms.Contact Mac vd Merwe northden@mweb.co.za 082 882 4346

Riviera fitting into Government plansGauteng premier David Makhura's State of the Province speech 2015 and 2016 re Sedibeng district and the Vaal triangle; “Our goal is to shift the economy of this corridor away from its overreliance on the steel industry and diversify to include tourism and entertainment, agro-processing, and logistics.”

Mr Makhura in a private meeting pledged his support for the Riviera resort concept.

Riviera background 1. The Riviera on Vaal Hotel and Country Club is a well known landmark destination.

The sectional title structure ideal for unlocking value.

2. The Riviera is ideally positioned and located to be developed into a paramount inland resort. The 52 kilometres of navigable river boating together with the Riviera golf course form a base for attractive resort activities.

3. The hotel has 91 rooms with 5 conferencing rooms and extended supporting faculties.

4. The hotel is rented and managed by Bon Hotels, the rental agreement is based on a revenue share by the owners.

5. Bon is responsible for all operational expenses and maintenance, the owners are responsible for external building maintenance, municipal cost and insurance.

6. The Country Club is owned and managed independently.

7. Hotel guests have preferential benefits at the Country Club facilities; golf, Spa and other sport.

BEE opportunity1. Acquire between 51% and 100% share in the hotel property owned by Trust.

2. Guaranteed revenue share.

3. Option to acquire additional shareholding.

4. Board participation.

Investing in;

1. Well managed going concern with established client base.

2. Extended development opportunities.

3. Support from local and provincial governments.

4. The location.

5. Positive cash flow.

6. The hotel has been valued at ZAR 150 million. (substantial discount)

Business development 1. The announced Vaal City, down stream from the Riviera, is injecting new momentum

in the Vaal as a paramount destination.2. It is anticipated that BEE partners will open additional corporate business

opportunities. 3. Collaboration by shareholders with business networks.4. Developing on the roof area will add to the exclusive offerings.

Site visits and promotions by shareholders in conjunction with hotel management.

Present situation• Bon Hotels is the operating company and lease the property on a revenue share

basis.

• The golf course (CC) is separately owned and managed it is self sustained and is constantly being upgraded.

• The hotel mostly caters for corporate functions and conferencing during the week and leisure guests over weekends.

• Facilities include; two restaurants, a Spa (CC), squash courts (cc), tennis court (cc), mashey golf course (CC), 18 hole golf course (CC), golf Pro shop (CC), river sport, cruises, various conferencing rooms and 91 rooms all with river views.

Value proposition and development plan Additional development could transform the hotel into an eco-friendly tourism resort, a staggered development framework should be followed;

1. The Riviera hotel to undergo limited aesthetic upgrading focussing on client facing facilities.

2. A new hotel wing, the Riviera Towers, can be added to the present hotel this will be a 50/80 room executive wing with all rooms having prime river views, this will include supporting facilities such as a new Spa, roof pool area, executive lounge and a health club. (hotel property)

3. Fully serviced executive offices can be established, corporate tourism and conferencing demands ‘office from office’ facilities. (hotel property)

4. A number of executive apartment can be constructed on top of the hotel building to accommodate senior corporate, Government and top tier investors. Leading South African and International companies demand a premier facility bench marked to global competitor analyses.

Contact Mac vd Merwe northden@mweb.co.za