Erindi price shoots to N$2.2 billion
The government and the owners of Erindi Private Game Reserve are still at loggerheads with regards to the value of the more than 70 000-hectare farm.
If the comments of the two role players - government and Gert Joubert - are anything to go by, talks scheduled for later this month will be deadlocked. In an interview with Namibian Sun Rudolf !Nanuseb, valuer-general at the land reform ministry said that it will not be issuing a waiver and that government is offering N$265 million in total for Erindi.
However, the owners of Erindi are asking a massive N$2.2 billion, which government is not willing to pay at this time. According to !Nanuseb, the ministry have prepared their valuation reports and provided these to the owners of Erindi.
He said that since the owners have appointed their own valuation team from South Africa to do a full valuation they should provide the market evidence why Erindi is worth more.
!Nanuseb said that the owners of Erindi want roughly N$26 000 per hectare just for the land, that is not even considering the game and the other infrastructure that is on the reserve. He went on to explain that farmland in the area of Erindi is worth about N$2 600 per hectare. !Nanuseb said that irrigation land can, however, sell for much more. But Erindi has challenges with water and that is why conventional farming such as livestock farming does not take place there and it was turned into a game farm, he explained. Agricultural experts and economists in this field also agree that farmland in the area can go for a price of about N$2 600 per hectare, but because Erindi is not fenced it can be somewhat less.
Experts also point out that the price that government is willing to pay for a game farm the size of Erindi is more than fair as it amounts to roughly N$3 700 per hectare.
“We have not started with negotiations, we are only engaging at this point because we are awaiting their report on the valuation,” !Nanuseb said. He added that a meeting is scheduled for 22 February between the ministry and the owners for consultation.
However, the valuation report from the owners has to be with the ministry two weeks before the time for them to study.
“At this point in time we have not received anything.”
Asked whether government will consider offering a higher price for Erindi, !Nanuseb said that it all depends on the report provided by the owners of Erindi and what their valuation determines.
“We have not seen the facts and the evidence they say they have and therefore they must convince government for a higher price.”
He further pointed out that a waiver on Erindi will not be issued because government has expressed interest to buy the game farm. He said that if the two parties cannot agree on a price it will be referred to the Land Tribunal, which will determine a price.
The Land Tribunal can call in additional valuation experts to determine this.
No benchmark
Meanwhile co-owner of Erindi, Gert Joubert yesterday told Namibian Sun that they and government are very far from each other when it comes to the price of Erindi.
He said that there are various ways to determine values, but the major problem with Erindi is that “there is nothing to compare it with in Africa”.
“How do you determine its value?” He said that his valuation team has not completed their report on Erindi because they are also having difficulty to determine the value. “The only person that really knows the value of Erindi is myself, because I built it from the ground up.”
Joubert added that the only way he can think of determining its value is by taking into account what it will cost to put something like Erindi together today.
“Will you be happy to expect a quarter of the worth for your house?” Joubert wanted to know about the low price government is offering.
Furthermore Joubert said with regards to the waiver that the minister can at any time decide to issue a waiver at his own discretion. Joubert added that he does not know if the meeting later this month will go ahead and that it is up to his lawyers.
“Maybe the valuation report will be done by that time.”
ELLANIE SMIT
If the comments of the two role players - government and Gert Joubert - are anything to go by, talks scheduled for later this month will be deadlocked. In an interview with Namibian Sun Rudolf !Nanuseb, valuer-general at the land reform ministry said that it will not be issuing a waiver and that government is offering N$265 million in total for Erindi.
However, the owners of Erindi are asking a massive N$2.2 billion, which government is not willing to pay at this time. According to !Nanuseb, the ministry have prepared their valuation reports and provided these to the owners of Erindi.
He said that since the owners have appointed their own valuation team from South Africa to do a full valuation they should provide the market evidence why Erindi is worth more.
!Nanuseb said that the owners of Erindi want roughly N$26 000 per hectare just for the land, that is not even considering the game and the other infrastructure that is on the reserve. He went on to explain that farmland in the area of Erindi is worth about N$2 600 per hectare. !Nanuseb said that irrigation land can, however, sell for much more. But Erindi has challenges with water and that is why conventional farming such as livestock farming does not take place there and it was turned into a game farm, he explained. Agricultural experts and economists in this field also agree that farmland in the area can go for a price of about N$2 600 per hectare, but because Erindi is not fenced it can be somewhat less.
Experts also point out that the price that government is willing to pay for a game farm the size of Erindi is more than fair as it amounts to roughly N$3 700 per hectare.
“We have not started with negotiations, we are only engaging at this point because we are awaiting their report on the valuation,” !Nanuseb said. He added that a meeting is scheduled for 22 February between the ministry and the owners for consultation.
However, the valuation report from the owners has to be with the ministry two weeks before the time for them to study.
“At this point in time we have not received anything.”
Asked whether government will consider offering a higher price for Erindi, !Nanuseb said that it all depends on the report provided by the owners of Erindi and what their valuation determines.
“We have not seen the facts and the evidence they say they have and therefore they must convince government for a higher price.”
He further pointed out that a waiver on Erindi will not be issued because government has expressed interest to buy the game farm. He said that if the two parties cannot agree on a price it will be referred to the Land Tribunal, which will determine a price.
The Land Tribunal can call in additional valuation experts to determine this.
No benchmark
Meanwhile co-owner of Erindi, Gert Joubert yesterday told Namibian Sun that they and government are very far from each other when it comes to the price of Erindi.
He said that there are various ways to determine values, but the major problem with Erindi is that “there is nothing to compare it with in Africa”.
“How do you determine its value?” He said that his valuation team has not completed their report on Erindi because they are also having difficulty to determine the value. “The only person that really knows the value of Erindi is myself, because I built it from the ground up.”
Joubert added that the only way he can think of determining its value is by taking into account what it will cost to put something like Erindi together today.
“Will you be happy to expect a quarter of the worth for your house?” Joubert wanted to know about the low price government is offering.
Furthermore Joubert said with regards to the waiver that the minister can at any time decide to issue a waiver at his own discretion. Joubert added that he does not know if the meeting later this month will go ahead and that it is up to his lawyers.
“Maybe the valuation report will be done by that time.”
ELLANIE SMIT
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