A rare investment opportunity has come to market with the auction of the iconic Hole in the Wall Retreat, one of the largest resorts in Coffee Bay on the Wild Coast of the Eastern Cape.
SA’s lesser-known coastal towns, like Coffee Bay, that are within easy reach of major cities, have quickly become preferred holiday destinations, offering excellent value, unspoilt scenery, ample outdoor activities and a quieter, more intimate holiday experience.
“Coffee Bay attracts backpackers and adventurers who are drawn to its natural beauty,” says Wesley Cowan, MD of Galetti Auction. “With the area being largely underdeveloped, visitors are left with very few accommodation options. The locals have also worked hard to preserve the heritage of this remote town with hardly any shops in the area, other than a small spaza shop.”
Owned by First Group and spanning a total ERF size of 13 062m2 with a GLA of 3 196m2, the fully operational property presents three exciting investment opportunities with the option to bid on the entire property (1), the hotel, backpackers and vacant land (2) and/or the chalets and houses (3).
The hotel, spanning 1 397m2, comprises 11 self-catering hotel suites on the water’s edge while the backpackers, spanning 536m2, feature 11 rooms. There is also 8 355m2 of additional development land up for sale and 10 chalets/houses available for purchase.
“The hotel comes complete with a bar, shop, restaurant, swimming pool, a kid’s playground area, spa, reception, and staff accommodation,” says Cowan. “Each of the thatched chalets offer between one and four private bedrooms, spacious living rooms, and kitchenettes. The backpackers sleep between three and five per room which has proven to be popular for a quick stop over.”
The additional 8 355m2 of land may be used for agricultural purposes, to expand on hospitality purposes or to create a new mixed-use development.
With the three opportunities on offer, Cowan says that the property has huge potential, presenting the opportunity for collaboration between keen investors and developers. “Furthermore, the sale involves the transfer of shares in a share block, granting a right of use over the connected property through a lease valid until 2084. The business operations (the hotel and backpackers) are included in the sale and the lease will transfer to the share block upon full payment at property transfer.”
Galetti Auction anticipates high demand with the auction taking place at 12:00pm on the 4th of February 2025 at the King David Mowbray Golf Club in Cape Town.
View drone footage of the Hole in the Wall Retreat.
Contact Wesley Cowan for more information on 082 964 0158.
