Dale Capital's chairman says group is committed to further expansion at Shelley Point - and in Mauritius

Recent media reports that some R83 billion is likely to be invested in the Western Cape’s West Coast over the next decade have confirmed Dale Capital’s faith in the future of this region, says Norman Noland, Executive Chairman of the Dale Capital Group. His group, he added, will be confidently going forward with its expansion plans in the area.

In September last year Dale acquired the new Shelley Point Hotel (recently graded four stars), Spa and Country Club. These have an estimated value of between R175 and R200 million, says Noland. The hospitality facilities are sited on the 90ha Shelley Point residential security estate which lies 60km (by road) north-west of Saldanha Bay and is sited on its own peninsula.

The hotel’s spa is said to be one of three best in the Western Cape and is linked to an upmarket gymnasium, available to all residents and visitors. The country club facilities include a nine hole golf course (currently in excellent condition), tennis courts and a bowling green.

The hotel, said Noland, has recently gained international recognition as a result of exposure given over the World Cup period through the Budweiser reality show. Team members of this show, who nicknamed the hotel “Bud House, the house of Bud United”, occupied all the suites during the World Cup period.

“This YouTube based reality show (http://www.youtube.com/user/BudUnited) had in excess of four million views during this period, the highest number in its history,” said Noland. “It projected Shelley Point onto the world arena as never before and we are already benefitting from this.”

Dale’s ambitious expansion plans for Shelley Point include enlarging and upgrading the conference and events facilities to make them capable of taking up to 300 guests. The plans here, said Noland, will be finalised by the end of August and construction work is expected to start in the last quarter of this year and to be completed before April 2011.

“The changes,” said Vanessa Northing, Dale’s Marketing Director, “will create a conference facility that is noticeably superior to, and different from, the majority on offer to corporate clients. It will be very definitely of world class standard and, being only 90 minutes from Cape Town but in a completely rural cut-off setting, is ideally positioned to suit both the long and short term conference and events clients.”

Shelley Point will also be offering a luxury bus service, which, said Northing, will reduce the cost of travelling to Shelley Point and make the journey there an enjoyable and relaxing experience.

Construction work on the conference centre, she added, will not impact in any way on the guests staying in the hotel.

Dale Capital, Noland revealed, will also be investing R24 million in six luxury freestanding villas to be built in the estate’s Sunset Ridge sector, adjacent to the hotel and with spectacular “sunset views”. These will be fully serviced by the hotel and are expected to be available for fractional ownership / renting by December 2010. Further announcements on this expansion will be released shortly.

Dale Capital, explained Noland, is a private equity investment holding company listed on the Mauritian Stock Exchange. In October this year it will celebrate its tenth anniversary. It has from the start, he said, targeted the SADC region for its investments and has been investing in South Africa for just on ten years.

The group now has assets of approximately R300 million and invests in five sectors. Its current expansion plans for the next 12 to 18 months will cost in the region of R150 million.

The five sectors favoured by Dale Capital are:

  • Financial services (the group has a 7,5% stake in the Mauritian based AfrAsia Bank and, with current negotiations, will increase this to 20%);
  • Fish and fine foods (Dale Capital has recently completed a US $5 million Bella Amiga fish processing factory, designed to comply with European standards, in Mauritius);
  • Information technology (with investments in business intelligence, credit card processing and mobile phone airtime);
  • The hotel and leisure sector (involving investments in South Africa and Mauritius); and
  • Energy (The group will launch its investment in this sector over the next six months).

“It is gratifying to be able to report that our hotel and leisure sector has, over the last two years proved to be the best performing of our asset classes,” said Noland, “and this is the one in which we are now expanding the fastest with a new R100m boutique hotel in Mauritius on which work will begin in the last quarter of 2010.

Prospects for the group’s leisure properties, said Noland, look “reasonably good” despite the global financial crisis and the impact it has undoubtedly had on the hospitality and tourism sector worldwide. At Shelley Point they have been achieving occupancies of over 55% and have bucked the downward trend in this sector.

“We are now working hard to complete certain projects ahead of the summer season. Hotel management is all about ‘getting bums into beds’ and with the help of our excellent management company, the Three Cities Group, and our highly experienced general manager, Des O’Connor, we have the right people in place to give customers what they expect from a unique hospitality venue of this kind.”

Noland revealed, too, that the long-awaited sectional title register in the new accommodation blocks at Shelley Point will soon become a reality but, he said, at this stage Shelley Point will be offering for sale only a maximum of 20 units of the 88 units .

“Our plan here is to offer something more than just a “boring” sectional title purchase,” he said. “We want to offer a solid investment with an initially guaranteed return and to link this with the country club golf membership and our new Mauritian hotel. This means that those who buy into Shelley Point will be able to swap their weeks for time in the Mauritian hotel in much the same way as an RCI client is able to do.”

For further information contact Vanessa Northing on 083 280 3418.

Article from: www.dale-capital.com