38 ha farm in Villiersdorp

R 9 450 000

Josephine During

Josephine During Real Estate

38 ha farm in Villiersdorp

R 9 450 000

farm name
Can I afford this?
Land Area 38 ha
Rates R 300

FARM FOR SALE Theewaterskloof


The improved farms (38 Ha in total) are located in the general vicinity of Villiersdorp town, in the Theewaterskloof area of the Western Cape, on the gravel road leading off the R45 and about 17 km from Villiersdorp and 99 km from Central Cape Town City. The surrounding area is beautiful and would probably remind one of parts of home, if you came from Scotland.

Farms in the area are mostly commercial, with fruit orchards and viticulture the main agri-industries.

The farms (two title deeds) fall under the Local Authority of Caledon DC. The R45 and surrounding areas are developing into an interesting route, close to the Appletiser Valley Region and it is already very popular with travel enthusiasts who take the gravel road from Bot River to Franschhoek. As the Theewaterskloof area becomes more of a destination location, tourism traffic along this route is set to increase, opening up opportunities for an entrepreneur.


The farm comprises of two title deeds and is divided into various camps for farming activities. The farm has been developed over time into a viable farming enterprise.


Partially inclined portions of land, with inclines of between 2% to 20% along the hill sides. It has magnificent views from the higher lying areas, with great potential for a future farm house.


This is a Mediterranean climate, with milder, moderate temperatures and winter rainfall (+/- 685 800mm p.a. on a long term average). Although hail is not known to occur, there is frost and snow on the surrounding mountains during winter. This is ideal climate for fruit and flowers.


The land is mostly developed with small areas of indigenous growth.


Mixed natural grass and some fynbos, not utilised by livestock, with 5 camps.


The current use as a commercial fruit / flower farm is considered to be the property's highest and best use, taking cognisance of the local authority rights, restrictions and regulations where applicable as well as the available resources.

The bulk of the farm is dedicated to Plums with about 13 Ha. There are 3 Ha of pomegranates, 2.5Ha of Proteas, 3 Ha of Olives and Ha of peaches.

During the 2016 year an additional 4 400 Plum trees have been planted. Total orchards are now about 23.5 Ha.

The surrounding farms are vineyards, orchards, dry land cropping, extensive livestock ranching, with smallholdings and lifestyle estates.

Distribution of fruit produce is done via the Franschhoek Packing House. A share in this is available.


Information gathered indicates that the farm water is supplied through a share in the Houtveld Dam (+/- 100 000m3 per annum delivered via the Houtveld Irrigation Scheme gravity pipeline, as well as 2 catchment / holding dams (+/- 16 000 m3 p.a.) and a river (+/- 4 500 m3 /annum. This water is used for the crops via the farm irrigation network system. Many of the lands are irrigate via gravity feed with only the higher lying areas being pumped. A spring provides for domestic water.


There is Eskom 3-phase connected to the farm. All fixed improvements are connected to the electricity grid. 2 Points are available, currently only one is used.


The farm is partially fenced with 2,1m fencing along the one dam and stock proof fencing on boundaries and camps.


The main dwelling is a prefabricated and stone wall home, with tiled floors, rhino-board ceilings, double pitch IBR roof. There are three bedrooms, 2 bathrooms, kitchen with pantry all of average finishing quality. Condition is above average.

There is also a foremans dwelling of plastered brick walls, wooden and tiled floors, rhino-board ceilings, double pitched metal roof. There are 2 bedrooms, 1 bathroom, kitchen, loft and living room all with average finishes. Condition is fair but needs to be renovated.


The outbuildings comprise of stores, labour housing and staff ablution facilities.

There is a flat roof shed utilised as an implement store area and as cover for the permanent cold storage room.

An open sided shed with flat galvanised roof and gravel floor is used as implement storage.

A block brick walled structure with metal roof and concrete floor and electricity is used for vermiculture.

The cold storage unit is used for the storage of proteas before shipment to distribution centres.

The above sheds are all of average to above average condition.

The LABOUR housing comprises of 2 plastered block wall structures with concrete flooring and double pitched metal roofing. Above average condition.

The staff ablution unit comprises of a plastered block with concrete floor under a single pitch galvanised roof.


It is our opinion that at the asking price of R 9 450 000-00 (+/- R247 000/Ha) the farm is well priced. (No moveable assets nor livestock were included in the valuation). The farms are now being sold as a unit and as a going concern. The valuation on the moveable assets are in the order of R200 000-00

When using different methodologies (Income Capitalisation / Comparable Sales / Depreciated replacement) one arrives at similar asking values for the property.

Having taken cognisance of land sales in the Caledon Regional District, and in spite of the economic climate, it has been found that factors such as offshore earnings through export activities, statutory compliance and land utilisation all play an important part in valuing farming enterprises.

For the Caledon area, the average improved rate of +/- R6 500 per Ha for mountainous low use areas up to +/- R 390 000 / Ha for Orchards / Lifestyle farms, is applicable. Using data from the subject farm area indicates that values of R180 000 to R350 000 / Ha are more in line with what is on offer. Taking all this into account (Land, orchards, buildings, water supply, etc) on a comparative basis, we arrive at a marketing value of +/- R 250 000 / Ha.

FINANCING A FARM (Absa guidelines)

Please note that the information given below is only given to provide a guideline and will address most of the questions regarding the financing of farms one would need to approach a bank or such institution for further details.

BUYING COMMERCIAL FARMS On average commercial banks will give loans of between 50 - 70% on their valuation of primarily the land, but also taking into consideration some improvements.

The banks will look at certain factors before granting a loan on farms. The bank will take in account the affordability of re-payment (income of farm), financial statements and assets (security).

MOVEABLES: This refer to items such as livestock, implements etc.- all items that can be included in buying a farm as a going concern. These items are usually financed by banks on short term financing. Again the bank will consider affordability of re-payment, financial statements and assets(security).

COUNTRY LIVING - GETAWAYS - SMALLHOLDINGS: Banks will vary in ha size, looking at a serviced small holding with a homestead as a normal home loan. On average loans of 80-90% of applied amounts are granted. The same financial requirements as mentioned above will be applicable. If you are considering buying undeveloped land such as a piece of mountainous veld, it will not qualify as an economic unit to the banks. - YOU WILL BASICALLY HAVE TO BE A CASH BUYER.

LAND BANK FINANCING: The Land bank will consider the production value of the farm taking including factors such as the market value before granting a loan to you as client.

* Views Yes

* Garden Yes

* Irrigation System Yes

* Borehole/Well point Natural spring and dams

* Farm implements etc Price available on request

* Erf / Property area 38 Ha

* Rates (+/-) R 300 p.m.

* Water from Dam R 450/Ha - for 15.8Ha

* Viewing to be arranged through Josephine

* All information given in good faith and subject to change.

Rates :R300

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Laas & Scholtz Inc

38 ha farm in Villiersdorp

R 9 450 000

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