Real Estate Opportunity in Franschhoek
According to Hein Koegelenberg, chairman of Franschhoek Tourism and CEO of La Motte and Leopard’s Leap wine estates, there is an enormous pride by the residents of Franschhoek in the heritage of their village. Tourism plays an important role in creating opportunities for the local community.
Currently, there is a heighten focus on the real estate values with the investments British billionaire, Sir Richard Branson and Indian tycoon, Analjit Singh, who are transforming Franschhoek into a playground for entrepreneurs.
Branson, the founder of Virgin Group, which comprises of over 400 companies, now, has his sights set on Franschhoek, mainly due to the suburbs winemaking prowess.
Located in the Western Cape, it is one of the oldest towns in South Africa and now it will witness a significant rejuvenation which will create an increase in property values.
Branson’s entrepreneurial spirit led him to establish ventures such as, a student magazine, a record label, an airline and an international gym franchise. The British billionaire has now uncovered the potential in the Franschhoek, where he will further diversify his business acumen in winemaking.
He has purchased the Mont Rochelle Hotel and Mountain Vineyards wine farm, with plans in place to revamp the multi-million rand hotel as well as, invest in the winery and vineyard whilst working with an internationally recognised winemaker.
Singh, founder and chairman of Max India Limited, has also invested in the lucrative winelands of Franschhoek and has bought three farms to the value of an estimated R80m. These include Dieu Donne, Van Ortloff and Klien Dassenberg, with a significant stake in Mullineux Family Wines.
Both Branson and Singh have uncovered the phenomenal potential in the and have invested tens of millions in real estate and farmland. This is no coincidence as the property market in the Western Cape has shown remarkable growth and higher return on investments when compared to other metros in South Africa.
For example, Cape Town’s CBD has experienced this growth in property values over the last 10 years, with both local and international investors zoning in on the area. This is according to the State of Cape Town Central City Report released in April 2016.
The report indicates that the value of property, rose from R6bn in 2005 to more that R24bn a decade later, with more than R8bn of new investment expected in the next five years.
In total, Cape Town generates more than 70% of the Western Cape’s economic activity and has been the catalyst in the province for economic growth and rejuvenation, this culture has spilled over into other suburbs including, Franschhoek.
It is this trend that has led Branson and Singh into the area. Branson being noted for his luxury retreats, will implement the “multimillion rand renovation programme” to the 32.5 hectare Franschhoek property and the 26-room Mont Rochelle Hotel. The farm cultivates its own grapes and wines are made on the estate.
The change of ownership comes amid an exciting time as the South African wine industry is going through a phase in which wine quality has increased greatly over the last five years and an array of new producers are cropping up, producing a variety of styles and varieties. This makes the acquiring of wineland in South Africa richly lucrative, in a way never witnessed before.
The hospitality industry in Franschhoek has witnessed a definite upswing in interest among investors like Branson and Singh. The sale of top-end lifestyle properties has placed the area firmly in the spotlight and has led to further sales of smallholdings reaching significant amounts between 27-36 million.
This rejuvenated interest in the area has undoubtedly increased property demand, resulting in growth in property values making it the ideal time to invest Franschhoek.
However, underpinning all of this is the Heritage of Franschhoek, evident in the oak lined streets, thatched cottages and gabled homesteads. The streets all bear French names, a reminder of the area’s origins. Its set itself up as the gourmet capital with award winning wineries and a culture centre. Besides the food and wine events that run throughout the year, it has been positioned as an intellectual hub due to the successful Literary Festival launched in 2006.
The magnificent mountains and the wonderful clean air and outdoor opportunities in Franschhoek and surrounds have added to the value and exclusivity that makes this a sought after area, whether to invest in the hospitality industry, tourism or other business or to plan a special getaway or make it homes, the charm of Franschhoek is multifaceted.
Author: Quoin Online