South Africa - Hole in The Wall

The project seeks funding to develop accommodation and conference facility, which includes: Hole in the Wall Hotel/Resort overlooking the Hole in the Wall arch which is an iconic natural attraction near Coffee Bay with a huge detached cliff that has a giant opening carved through its centre by the waves. The development will include the following:

• A 5-star hotel accommodating 44 guests
• Self Catering accommodation consisting of 30 x 2 bedroom units and 30 x 1 bedroom units as well as staff accommodation
• Day visitor’s facilities which include indoor dining facilities, bar area, boma and pool
• A 500 seater conference facility
• Other facilities- restaurant, lounge, health spa and fitness centre

Type of Partnerships:

• Lease agreement between the Department of Rural Development and Land Reform, Mthonjana Community Development Trust and Incopho Coastal Development (Pty) Ltd.
• The targeted debt to equity structure is 55% (debt): 45% (equity), this will ensure adequate return on investment to all stakeholders. The project is targeting a return on equity of 13%. Leverage funding of (debt) 55% of the capital cost is to be financed via the IDC / local financial services company on commercial terms. Currently the entrepreneurs have committed approximately R2.5 million the poroject establishment phase.