WITH the spectre of the Saldanha Steel closure hanging darkly over the West Coast economy, the Club Mykonos Langebaan (CML) leisure property development is showing encouraging signs of vibrancy and, more importantly, additional investment.
Trematon Capital Investments – the owner of CML – indicated in its latest annual report that the intrinsic value of the development increased slightly due to increases in property values as a result of continued rental income growth in both the boatyard and marina as well as new commercial tenants.
Trematon CEO Arnold Shapiro said the Club Mykonos resort had been incrementally improved over the past eight years with the most recent improvement being the main public areas on the waterfront. “These needed a facelift to bring it up to standard with the rest of the property.”
Shapiro said a strategic decision to install a major franchise on the waterfront led to engagement with various national franchises. “We are pleased to announce that the Cape Town Fish Market at Club Mykonos is now operational along with a newer franchise called Kapstadt Brauhaus.” He said these new leases required significant capital expenditure. But he believed the results appeared to be “very pleasing” with early indications that the Club Mykonos Waterfront will become a major leisure attraction in the area.
Shapiro disclosed initial trading at the new franchises had been positive. “We are confident that this will bring new clients to the resort and improve the overall guest experience.”
He also reckoned the new franchises would help CML entice more group and conferencing business to the resort to increase mid-week occupancies.
CML’s contribution to Trematon’s profit grew by a sprightly 22.4% to R13.1 million – underlining the success of the newer investments.
Shaprio noted that the Club Mykonos Marina and Boatyard continued to show strong growth even in the current difficult economic conditions. “They are both integral parts of the Club Mykonos resort and remain fully let with a substantial waiting list.”
He said a major refurbishment of the marina terrace restaurants was also completed at the end of September after CML secured a long-term lease agreement with the Cape Town Fish Market and Kapstadt Brauhaus.
The Club Mykonos Boatyard, which comprises 257 lock-up storage units in various sizes as well as safe outdoor storage – has started installing a powerful 726 kW solar plant. Shapiro explained that this would see CML being less reliant on availability of power from Eskom, and also mitigate any supply constraints from the beleaguered power utility for any future developments.
Shapiro confirmed that CML continued to explore potential development of the remaining zoned land. “This will unlock further value and add to the already positive annuity income contribution that CML provides Trematon.”
