PROPERTY REPORT

WATERBERRY HILL Ptn 22 Farm 6 ABEK

Perrys Farm, Kiepersol Road Near Hazyview

This valuation is based on information given to us

by the owners of the property and various other sources.

We cannot therefore be held responsible for errors,

omissions or assumptions made in good faith.

TITLE DEED DETAILS DESCRIPTION OF PROPERTY : Ptn 22 Farm 6 ABEK Reg Div: JU MPUMALANGA SIZE : 27.6743 ha REGISTERED OWNER : WATERBERRY HILL SHARE BLOCK LTD 89/04099/06 COORDINATES (Lat/Long) : -25.0494, 31.0860 TOWN PLANNING ERF NO : 6 PORTION : 22 FARM : ABEK PROVINCE : MPUMALANGA TITLE DEED NO : T61087/1989 MUNCIPALITY : MBOMBELA ZONING : BUSINESS (As per rates account)

LOCALITY The Property is situate on the Kiepersol Road, 6 km from Hazyview and 30 km from White River. Hazyview is a small farming town in Mpumalanga, renowned for its banana industry. Most of the private game reserves in the province, are found just east of the town. There are three golf courses within a 5 km radius from the town centre. The subject property provides for a luxurious getaway, surrounded by indigenous bush and breathtaking views of the rolling hills beyond. It is also in close proximity to most popular attractions, viz, Kruger National Park, Gods Window, Bourkes Luck Potholes and the Blyde River Canyon.

AMENITIES Amenity Type Distance (km) Total FillingStation 4.26 km Shell FillingStation 4.30 km Engen FillingStation 4.38 km Police SAPS - Hazyview PoliceStation 4.31 km Summer Hill Pre Primary School 1.49 km Laerskool Burgershalt PrimarySchool 2.70 km Hazyview Primary School 4.08 km Dunkana Shopping Centre 4.14 km Perry's Bridge Centre ShoppingCentre 4.17 km Hazyview ShoppingCentre 4.24 km Cacol Private College TertiaryInstitution 4.10 km

IMPROVEMENTS The facility is currently run as a Gold Crown RCI resort and enjoys a number of luxurious improvements, offering 48 self-catering colonial-style chalets, comprising of 24 x (A) type units, 24 x (B) type units, managers house, reception, putt-putt, tennis, sparkling pool, private pool enjoyed by Units 12 (A&B), spa facility, kids play area and boma with ablutions, overlooking 180 degrees of never ending views. The improvements are surrounded with manicured gardens, established trees and indigenous bush, providing a peaceful and serene setting. All situated on 27.6743 hectares. All improvements are, constructed of plastered brick and mortar with IBR roofing, steel widow frames and tiled floors. The Erf is rectangular in shape and has a fair gradient, with the chalets evenly dispersed over the land. The site is well located on the edge of a steep drop off, offering fantastic panoramic views. The perimeter of the facility is secured with electric fencing giving that peace of mind, while enjoying the facilities, away from the unit.

ACCOMMODATION

Two Bed Chalet (A) Type +-166 m2, constructed of brick, mortar, plaster, tiled floor with steel window frames and IBR roofing. Translucent roof sheeting, over the open-plan dinning and lounge area, providing a soft natural light. The facility has an welcoming atmosphere with high end finishes, tastefully furnished, comprising of 2 bedrooms, 2 bathrooms, main en-suite with shower and spa bath, open-plan lounge, dining and kitchen with granite tops. The unit also offers a covered patio with built in braai and a secluded outside Jacuzzi and shower, accessible directly from the unit. Shade net provides ample parking for two vehicles. All units have an inter-leading door to the next unit, should one require a four-bedroom chalet.

Two Bed Chalet (B) Type +-89 m2, constructed of brick, mortar, plaster, tiled floor with steel window frames and IBR roofing. The facility has an inviting atmosphere with high end finishes, tastefully furnished, comprising of 2 bedroom, 2 bathrooms, main en-suite, open-plan lounge, dining and kitchen with granite tops. The unit also offers a covered patio and braai area, accessed through the lounge. Shade net provides parking for two vehicles close to the unit. All units have an inter-leading door to the next unit, should one require a four-bedroom chalet. Managers House +-160 m2, constructed of brick, mortar, plaster, tiled floor with steel window frames and IBR roofing. The facility is located in front of the reception area, comprising of 3 bedrooms, 1 bathroom, open-plan lounge, dining and kitchen. The House enjoys its own private garden. Reception Constructed from brick, mortar, plaster and steel window frames with IBR roof. The facility consists of a reception desk, a small kiosk providing the basic essentials and a manager’s office on the side of the facility. Spa Facility The spa facility comprises of a wooden cabin approximately 112 m2, located in the gardens under the trees. Staff Quarters +- 25 m2 constructed from brick, mortar, plaster and steel window frames with IBR roof. Consisting of 2 beds, 1 bathroom. Best Use The properties location and luxurious improvements, lends itself to a couple of ‘Best uses’. While the current use proves to be successful, the facility would also suit permanent residents, with the introduction of a levy to cover common property expenses, rates and security. A retirement village, if one had to convert the reception and managers house into a frail care.

MARKET VALUE INVESTMENT VALUE Market Value is the amount that a willing legally capable Purchaser is prepared to pay to a willing legally capable Seller for the subject property at a fixed date. To determine the value we have utilized various sources including the Surveyor General Office, Deeds Office and local estate agents (recent rentals achieved in the area). Appreciating that the subject property is functional as timeshare resort. It is however ideally suited to utilize the entire facility as a permanent residence. It is therefore my opinion that because the property is income producing, the best method of valuation is the “income” or “return” method, based on the comparable area rentals. Viz: ESTIMATED MONTHLY INCOME 1) 24 x 2 Bed Units (Type A) Furnished @ R 8000.00 = R 192 000.00 2) 24 x 2 Bed Units (Type B) Furnished @ R 6800.00 = R 163 200.00 3) Managers House @ R 7 500.00 = R 7 500.00 4) Levy R6 / m2 @ 6280 m2 = R 37 680.00 TOTAL R 400 380.00 Annual gross income R 4 804 560.00

LESS EXPENSES Assessment Rates @ R 49 470.00 x 12 = R 593 640.00 Insurance @ R 5 149.69 x 12 = R 61 796.28 Maintenance (Nominal) = R 200 000.00 Security (Nominal) = R 400 000.00 Total = R 1 255 436.28 Nett annual income R 3 549 123.72 The Market Value is the present value of future income streams at an acceptable rate of return. As Hazyview and surrounds is regarded as a fair investment risk, an expected return would be about 11%. Present value of net income in perpetuity at 11% = R 3 549 123.72 0.11 = R 32 264 761.09

SAY R 32 000 000.00 (THIRTY TWO MILLION RANDS)

INTRINSIC VALUE

Say R 52 000 000.00 (FIFTY TWO MILLION RANDS)

Item Area (m2) Rate (per

m2) Cost

Land 276 000 R 16 R 4 416 000.00

Unit (Type A) 166 m2 x 24 3984 R 5 500 R 21 912 000.00

Unit (Type B) 89 m2 x 24 3126 R 5 500 R 17 193 000.00

Managers House 160 R 5 500 R 880 000.00

Reception/ Spa/ Staff ± 187m R 3000 R 561 000.00

Furniture (All furniture) Nominal R 4 500 000.00

Perimeter electric fence ± 2150 m R 380 R/M R 171 040.00

Paving / pools / improvements Nominal R 2 500 000.00

Total R 52 133 040.00

PHOTO GALLERY Reception

Managers House

Self catering units (A) Type

Self catering unit (A) Type cont.

Self catering unit (B) Type

Common Areas