The Eastern Cape region continues to experience a high demand for farms — particularly game farms — reports Gregg Rippon, specialist farm agent for Pam Golding Properties in the region.

No land claims and malaria free

"With its malaria-free status and lack of land claims, there's a huge demand for farms in this region," comments Rippon, who is based in Grahamstown. "We do find, however, that the main interest is from those in the game industry as well as from stock farmers being displaced by land claims and buyers moving down to be near Grahamstown — attracted by its outstanding education facilities.

"The Eastern Cape has appealed to the game industry ever since Adrian Gardiner took the initiative and established Shamwari. This trend gathered impetus with the Big Five industry taking off and we saw the likes of Kwandwe, Pumba, Kwantu and Lailbela launched. However, Big Five reserves such as these require large tracts of land so they tend to be few and far between and the current actual price of ground makes it almost impossible to start one of these ventures now.

"Having said that, we are currently marketing a 5165 hectare Big Five reserve which includes three established lodges with 52 beds (44 adults) and a state of the art conference centre with seating for 110. Well situated just 25 minutes from Grahamstown on the Port Elizabeth road, this operation is ideally suited as a game viewing / breeding operation and is priced at R150-million. It is offered as a going concern with assets to be sold comprising 4539 hectares of owned land, the lodges and supporting assets, conference centre as well as the conservancy rights on an area of 627 hectares stocked with free-roaming game at Big Five level," says Rippon.

Last year Rippon was involved in a transaction which saw some 25 000 hectares purchased by an American from some 15 owners — for conversion to an exceptional hunting farm which has been extremely successful. The total value of the deal was approximately R160-million of which Rippon was responsible for R60-million, the balance being a private transaction.

Sought after small, private game farms

"Generally, however, most of the overseas investors are looking for small, private game farms for hunting purposes as these are priced in the R10-million mark," says Rippon. "Any investor looking to invest considerably in excess of this tends to understandably seek some sort of return on investment and the majority form a partnership with a professional hunter who then manages the farm."

He says farms in the Grahamstown area are usually from 100 to 2000 hectares in size with stock farms mainly priced between R3000 and R8000 per hectare, while game farms are priced from R5000 to R40 000 per hectare. There are larger farms in the region of 4000 to 5000 hectares, but these are hard to come by.

The main type of farming in this area is cattle followed by game or a combination of the two. Grahamstown continues to enjoy an influx of families relocating here to take advantage of the good schools. Some are investing in the town, but the farmers amongst them however always seem to want to own a piece of land and as a result farms in the area are being snapped up. Even smaller portions of land are favoured as those tend to be close to town and small enough never to be sub-divided in compliance with agricultural standards that require an economical unit. This type of ground is priced from R10 000 to R20 000 per hectare.

Farmers from KZN looking for farms in the E Cape mainly as a result of land claims

"Currently there seems to be a contingent of stock farmers from KwaZulu-Natal looking for farms in the Eastern Cape mainly as a result of land claims. However, it's not that easy to buy in as prices here range from R4000 to R10 000 per hectare (land price only) for cattle farms. At present we are marketing an 800 hectare beef farm situated on the Kariega River, priced at R8.5-million with dry and irrigated pastures to carry 200 breeding cows and 500 dorper ewes. There are also a few farms around the R3000 per hectare mark, but these tend to be really small stock farms that are over-grazed and have water supply issues," says Rippon.

He adds that just 90 kilometres from Grahamstown the small and appealing town of Bedford offers excellent summer grazing land that is the envy of most farmers who live elsewhere. Land here is available from about R8000 per hectare. "This is a secure area with a highly desirable lifestyle. Currently on offer in Bedford is a magnificent 750m² five-bedroom, three-bathroom homestead set on a 2143 hectare farm with four good boreholes providing more than sufficient water for stock and 36 hectares of irrigation. Buildings include a manager's house and 10 staff houses plus a 450m² dairy. Game includes impala, white blesbuck, fallow deer, springbuck and kudu. The price is R20-million.