Billionaire playground gets green light
Despite the national sentiment against foreign land ownership, a Russian billionaire has bought four farms and donated them to the government in exchange for a 99-year lease.
Audacious moves by the land reform ministry to accommodate the Russian billionaire Rashid Sardarov have resulted in the Russian oligarch buying four farms and donating them to the Namibian government, provided that he can lease the properties for 99 years.
The agreement, which only emerged this week, was signed 13 days before Namibia's second national land conference, which spoke out strongly against foreign ownership of land.
Sardarov paid N$2 500 per hectare for four farms totalling around N$43.5 million.
Farm Rainhoff, Kameelboom and Smaldeel, totalling 11 402 hectares, were sold as a unit for N$28.5 million while Farm Wolfsgrund was sold for N$14.9 million and is 5 989 hectares in size.
Under the lease agreement Saradov pays N$160 168 in rent for the first quarter of each year in 2018/19 and thereafter the land tax paid by owners of commercial farms must be paid. Sardarov now has in his control slightly more than 45 000 hectares of land in Namibia.
He already owns a 28 000-hectare Dordabis property on which the state-of-the-art game ranch known as Marula Game Lodge is built and he previously made his intentions clear to acquire a further 18 000 hectares of neighbouring farms.
He intended to donate N$24 million to the government if he was able to obtain the required waiver certificates from the land owners and ministerial consent to buy the land.
However, land reform minister Utoni Nujoma rejected his application to buy and own four farms, which total just over 17 000 hectares.
“The lessee initially proposed certain donations to the government provided that [he] is given consent to acquire and own the farms on freehold basis. The land reform minister has rejected the lessee's application as a foreign national to acquire and own the four farms,” according the title deed. Utoni proposed that, in view of the development and economic benefit that would arise from investments to be made by Sardarov, the four farms should rather be acquired by the government at full cost. This included the purchase price and compensation demanded by the farm owners.
Consent was then given for Sardarov to lease and occupy the properties for 99 years.
The four farms are all registered to Rhino Farming and belong to Claus and Kurt Dühvel. According to the title deed documents, at the end of the lease period the government will become the owner of the four farms and also the improvements (worth millions of Namibian dollars) made on the farms.
In addition to the purchase price Sardarov must compensate the owners of the four farms for the loss of their existing business, on condition that these properties are leased for 99 years, the document states. This price is not specified.
It says that Sardarov may use the properties for his business of choice, including private game farming, game hunting, hospitality, tannery business, hotels, sport facilities, performance art facilities, and development of infrastructure such as roads, fences, houses, parking areas, landing strips and similar facilities.
The treasury, in accordance with the State Finance Act, approved that the lands ministry may accept the donation from Sardarov.
Namibian Sun previously reported that Sardarov had constructed infrastructure totalling close to N$1 billion, including houses for his employees, dams, waterholes, roads and fences, at Marula Game Ranch.
Marula Game Ranch, located about 70km from Windhoek, boasts with the Marula Lodge, Marula Farm House and Otjimukona Lodge.
There are also a clinic and a shop. A total of 500km of gravel roads have been built on the land.
During a visit to the game ranch last year, general manager Johan Kotze told Namibian Sun that the five-star Marula Lodge mostly served as a residence for Sardarov, his family and friends.
Hunters paid US$3 000 per night to stay at Marula Lodge. At the other two lodges it costs US$450 per night.
Kotze said the ranch boasted with 7 500 species including antelope, giraffe, zebra, crocodiles, hippos, cheetah and other protected species. Elephants were also bought and in the future they want to include lions and buffalo.
Sardarov is the chairman and founder of Comsar Energy Group and South-Ural Industrial Company (SUIC), both of which are large private companies in Russia, with a presence in several countries in Eastern Europe. The assets of the companies amount to US$2.2 billion, according to the SUIC website.
He is described as a flamboyant Russian oligarch with an interest in energy businesses, property, aviation, hospitality and hunting wildlife for fun.
He is among the high-profile business people who were exposed in the so-called Panama Papers leak, which revealed how the rich create offshore shell companies in tax havens to avoid paying taxes, conceal their riches and even engage in crimes such as money laundering.
ELLANIE SMIT
The agreement, which only emerged this week, was signed 13 days before Namibia's second national land conference, which spoke out strongly against foreign ownership of land.
Sardarov paid N$2 500 per hectare for four farms totalling around N$43.5 million.
Farm Rainhoff, Kameelboom and Smaldeel, totalling 11 402 hectares, were sold as a unit for N$28.5 million while Farm Wolfsgrund was sold for N$14.9 million and is 5 989 hectares in size.
Under the lease agreement Saradov pays N$160 168 in rent for the first quarter of each year in 2018/19 and thereafter the land tax paid by owners of commercial farms must be paid. Sardarov now has in his control slightly more than 45 000 hectares of land in Namibia.
He already owns a 28 000-hectare Dordabis property on which the state-of-the-art game ranch known as Marula Game Lodge is built and he previously made his intentions clear to acquire a further 18 000 hectares of neighbouring farms.
He intended to donate N$24 million to the government if he was able to obtain the required waiver certificates from the land owners and ministerial consent to buy the land.
However, land reform minister Utoni Nujoma rejected his application to buy and own four farms, which total just over 17 000 hectares.
“The lessee initially proposed certain donations to the government provided that [he] is given consent to acquire and own the farms on freehold basis. The land reform minister has rejected the lessee's application as a foreign national to acquire and own the four farms,” according the title deed. Utoni proposed that, in view of the development and economic benefit that would arise from investments to be made by Sardarov, the four farms should rather be acquired by the government at full cost. This included the purchase price and compensation demanded by the farm owners.
Consent was then given for Sardarov to lease and occupy the properties for 99 years.
The four farms are all registered to Rhino Farming and belong to Claus and Kurt Dühvel. According to the title deed documents, at the end of the lease period the government will become the owner of the four farms and also the improvements (worth millions of Namibian dollars) made on the farms.
In addition to the purchase price Sardarov must compensate the owners of the four farms for the loss of their existing business, on condition that these properties are leased for 99 years, the document states. This price is not specified.
It says that Sardarov may use the properties for his business of choice, including private game farming, game hunting, hospitality, tannery business, hotels, sport facilities, performance art facilities, and development of infrastructure such as roads, fences, houses, parking areas, landing strips and similar facilities.
The treasury, in accordance with the State Finance Act, approved that the lands ministry may accept the donation from Sardarov.
Namibian Sun previously reported that Sardarov had constructed infrastructure totalling close to N$1 billion, including houses for his employees, dams, waterholes, roads and fences, at Marula Game Ranch.
Marula Game Ranch, located about 70km from Windhoek, boasts with the Marula Lodge, Marula Farm House and Otjimukona Lodge.
There are also a clinic and a shop. A total of 500km of gravel roads have been built on the land.
During a visit to the game ranch last year, general manager Johan Kotze told Namibian Sun that the five-star Marula Lodge mostly served as a residence for Sardarov, his family and friends.
Hunters paid US$3 000 per night to stay at Marula Lodge. At the other two lodges it costs US$450 per night.
Kotze said the ranch boasted with 7 500 species including antelope, giraffe, zebra, crocodiles, hippos, cheetah and other protected species. Elephants were also bought and in the future they want to include lions and buffalo.
Sardarov is the chairman and founder of Comsar Energy Group and South-Ural Industrial Company (SUIC), both of which are large private companies in Russia, with a presence in several countries in Eastern Europe. The assets of the companies amount to US$2.2 billion, according to the SUIC website.
He is described as a flamboyant Russian oligarch with an interest in energy businesses, property, aviation, hospitality and hunting wildlife for fun.
He is among the high-profile business people who were exposed in the so-called Panama Papers leak, which revealed how the rich create offshore shell companies in tax havens to avoid paying taxes, conceal their riches and even engage in crimes such as money laundering.
ELLANIE SMIT
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