Email: info@malagashotel.co.za | Tel: 028 542 1049

FRACTIONAL VACATION OWNERSHIP

Malagas Hotel is proud to announce the release of our exiting new vacation ownership product

  • Fantastic usage flexibility
  • Fixed term ownership (15 years)
  • Finance available
  • First class accommodation
  • Free of conventional holiday ownership drawbacks
  • Freedom to exchange to Local and International resort destinations
  • Firm legal ownership structure

 

iExchange logo

PRODUCT OVERVIEW

1. Introduction

Malagas Hotel Fractional Vacation Ownership is an enhanced holiday ownership concept with the objective being to offer a super flexible holiday ownership experience encompassing the following features:

  • Fantastic usage flexibility
  • Fixed term ownership (15 years)
  • Financially affordable
  • First class accommodation
  • Free of conventional holiday ownership drawbacks
  • Firm legal ownership structure
  • Family friendly

 

The Malagas Hotel is a country hotel situated on the banks of the Breede River, near Swellendam in the province of the Western Cape, South Africa.

2. The Developer 

The developer is the owner of the hotel and is registered in the name of Malagas Guest House CC. The hotel was developed and built by the owner in 1996.

3. The Development

Currently development comprises the following elements and facilities:

  • 45 hotel rooms (comprising 33 sections 2-16, 19-36)
  • The operational unit (section 1) comprising the hotel restaurant, bar, reception, conference venue, fuel station, storage facilities, staff accommodation and workshop.
  • The common property including swimming pool, children’s play areas, water purification plant, vehicle parking and storage dams.
  • Jetties
  • 4 Leisure Liner house boats
  • Motor boats and canoes

Optional future phases include the following:

  • 10 additional hotel units (5 sections) replacing part of the existing conference venue.
  • Lapa facility next to the existing swimming pool.

4. Development programme and timing

The Malagas hotel was built in 1996 and the Sectional title plan was registered in January 2013. Refurbishment of the hotel rooms commenced early 2014 and the first 10 hotel rooms were completed in August 2014. Rollout of the refurbishment of the balance of the hotel rooms will continue in phases as required. Upgrading of the operational unit and general exterior refurbishment and maintenance is ongoing. Construction of a new driveway entrance commenced in May 2014 and has been completed.

5. Control and ownership structures

The local authority is the Swellendam Municipality, which falls under the Administrative district of Swellendam, Western Cape, South Africa.  Malagas hotel comprises of the property, Rem of Erf 153 Malgas, measuring a total of 1,5526 hectares. The Sectional Title scheme is known as Malagas Hotel.

6. Sectional Title

Sectional Title means the registration of a Section (unit/hotel room) with its undivided share in the common property, apportioned in accordance with the participation quota on the Sectional Plan – inclusive of Exclusive Use Areas (i.e. patios, verandas) and moveable’s when applicable. All Sections together with the common property comprise the Sectional Title scheme.

The share block company, River Breede Hotel Share Block Company (Pty) Ltd acquires Sections for the Malagas Hotel Fractional Vacation Ownership scheme from the developer, Malagas Guest House CC. Malagas Guest House CC retains ownership of all the other Sections in the scheme not pertaining to Malagas Hotel Fractional Vacation Ownership i.e. the operational unit and all the remaining hotel rooms not yet acquired by the share block company.

Malagas Guest House CC retains ownership of the moveables in all the sections.

7. Ownership structure

Owners purchase shares in River Breede Hotel Share Block (Pty) Ltd, linked to the accommodation in Malagas Hotel via the sections acquired by the share block company and to which shares, a fixed number of points are allocated each year for a use period of 15 years from date of purchase of the shares.

8. Use options

Internal Exchange Programme

The Internal Exchange Programme provides the owner access to and use of all the accommodation at Malagas Hotel including the Leisure Liner houseboats.  The points allocated to the owner determine how many night’s accommodation per annum are available to the owner – determined by the time of year, which days of the week and the type and size of accommodation the owner chooses to use, subject to the Malagas Hotel Points Usage Table and Internal Exchange Programme Rules.

External Exchange Programme

The development is affiliated to the iExchange Network (Pty) Ltd. The External Exchange Programme is linked to iExchange. The points allocated to the owner determine how many weeks/midweeks/weekends accommodation per annum are available to the owner for local and international exchange to resorts within the iExchange resort portfolio – determined by the time of year, the resort grading and the type and size of accommodation the owner chooses to use, subject to the iExchange Malagas Points Values and Exchange Rules.

9. Body Corporate

All buildings and the common property are controlled by the Management and Conduct Rules prescribed by the Sectional Title Act, for proper use and management of the development. The functions of the Body Corporate are exercised by the trustees of the Body Corporate. Trustees are elected annually by the members of the Body Corporate. To carry out its functions, the Body Corporate establishes a fund, to which owners make an annual contribution known as a levy.

10. Levy

The owners levy contribution per annum is determined by the number of shares purchased.

The levy fund is used to maintain the exterior of all sections and the common property as well as payment of rates and taxes, water and electricity, salaries and wages, management, accounting and audit fees, dstv etc. The levy includes a service and maintenance fee payable to Malagas Guest House CC for maintenance and upkeep of the inside of the section, upkeep and refurbishment of the moveables, daily servicing and the provision of consumables (i.e. teas, coffee, soaps shampoo etc.)

11. Purchase procedure

A Sale Agreement and Use Agreement are entered into between the seller and the purchaser to record the purchase of the shares which is secured by way of a 50% deposit.

The balance of the purchase price is payable prior to the transfer of the shares. Alternatively the purchaser can apply to the developer for finance of the balance of the purchase price with interest payable over a period up to 24 months.

11. Purchase procedure

A Sale Agreement and Use Agreement are entered into between the seller and the purchaser to record the purchase of the shares which is secured by way of a 50% deposit.

The balance of the purchase price is payable prior to the transfer of the shares. Alternatively the purchaser can apply to the developer for finance of the balance of the purchase price with interest payable over a period up to 24 months.

        

Disclaimer: This document is intended as an informative brochure for information and marketing purpose only, is subject to change and does not constitute a legal document. Information herein is set out and further explained in the relevant legal documentation: FRACTIONAL OWNERSHIP: SHARE SUBSCRIPTION AND LOAN CLAIMS SALE AGREEMENT AND ANNEXURES,  USE AGREEMENT, MOI, MANAGEMENT AND CONDUCT RULES, SECTION DRAWINGS