Investment Opportunity, in the heart of the world’s ... · Investment Opportunity, in the heart of the ... Fractional ownership in Nambwa Lodge, ... Africa. It is 520 000 km2 (similar

Statement of Confidentiality

This proposal and supporting materials contain confidential and proprietary business information of African Monarch Lodges. These materials may be printed or photocopied for use in evaluating the proposed project, but are not to be shared with other parties.

Valid to: 01. 09. 2014

Issued:01. 03. 2014

Dusty RodgersAfrican Monarch Lodges64 Nelson Mandela Avenue, Klein Windhoek, Namibia

Telephone: 264 811244249

[email protected]

www.africanmonarchlodges.com

Nambwa Lodge Development

Investment Opportunity, in the heart of the world’s largest conservation area

2 © African Monarch Lodges | Nambwa Lodge - A piece of Africa

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Invest in the largest conservation area in the world.

The Offer

In December, 2013, veteran communal lodge developer, Dusty Rodgers, was awarded the development and concession rights to build a tourism lodge and campsite on the banks of the Kwando River, in Bwabwata National Park. The concession encompasses an existing site that has never been developed beyond a campsite.

Dusty is one of the forerunners in developing nature establishments in Namibia that protect wildlife and give back to the local communities. His work has contributed extensively to the formalization of the local conservancies network in Namibia. These conservancies marry local communities with

Limited shareholdings are being offered in Nambwa Lodge, situated on the banks of the Kwando River, within Bwabwata National Park, an area that protects some of Africa’s most precious species.

tourism development. They ensure agreements are made with traditional authorities and conservation groups to respect the cultural and traditional lifestyles of the local people, to develop human resources, and to empower communities through wildlife management and employment.

This buy-in opportunity not only gives a good return on investment, but you can spend time in the midst of African nature. You will become a caretaker of nature and culture, in the heart of the largest conservation area in the world.

Fractional ownership in Nambwa Lodge, Namibia

3© African Monarch Lodges | Nambwa Lodge - A piece of Africa

Mobile: 264 811244249

Protected by the Peace ParkThe Peace Park is also known as the Kavango Zambezi Transfrontier Conservation Area (KAZA). It encompasses wilderness and communities where countries are collaborating to turn the tide on the disappearing species of sub-Saharan Africa. It is 520 000 km2 (similar in size to France).

It includes 36 national parks, game reserves, community conservancies and game management areas, including Bwabwata National Park. This area has the largest contiguous population of African elephants in the world (approximately 250,000). Breaking down the borders and allowing wildlife in the area to follow their natural migration routes (in the face of ever increasing water scarcity), means the difference between life and death for many of the region’s endangered species.

Nambwa Lodge is located in the heart of KAZA. Its surrounding area is rich with the migration of elephants and their predators, as well as hippos, repitiles, birds, and many species of antelope.

Commited to the ProcessThe development of Nambwa Lodge is in full respect of the values of principles of the KAZA agreement and Peace Park organization. African Monarch Lodges shares these same values. Your investment will also be contributing to developing human resources within the local communities, thereby supporting sustainable economic development, the conservation of biodiversity, and regional peace and stability. The shareholders in this development project include the local Mashi Traditional Authority and the Mayuni Conservancy.

In the Heart of a Wildlife Corridor

Zambia, Angola, Namibia, Botswana and Zimbabwe have committed to break down old borders and fences to allow the remaining wildlife to follow their natural migration routes.


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10 room nights (20 bednights) annually. Based on double occupancy. Single occupancy counts as 2 bednights.

Valued at N$55,000 per annum.

Option 1 - €17,170; USD $23,900; Option 2 - €34,400; USD $47,700. Exchange rate on April 11, 2014.

Shareblock Option 1 - Nambwa Lodge Pty Ltd

Shareblock Option 2 - Nambwa Lodge Pty Ltd

No annual levies.

Maximum 50% of shares available for purchase in equal parts.

Shareholding is issued as security for the investment and is fully transferable. Can be traded, transferred, inherited...

The investment funds will be used as a non-interest bearing loan until the lodge is opened in September 2014. You may recall your loan at this time, or have it converted to a shareholding.

African Monarch Lodges (AML) will guarantee a buy back of your shares after 5 years, at even money. There is no obligation for you to sell.

After 5 years, AML will have 1st option to purchase any shares for sale. If AML does not purchase your shares, you can offer to sell them to all shareholders, or trade them on the open market.

21 room nights (42 bednights) annually. Based on double occupancy. Single occupancy counts as 2 people.

Valued at N$115,550 per annum.

Shareholder benefits and details

26% Annual Return on Investment

26% Annual Return on Investment

Share Cost and Return

N$250,000

N$500,000


Mobile: 264 811244249

Enjoy full service when you use your days at the lodge. Host your friends.

Your Bednights per annum are in perpetuity as long as you renew your shareholding. You can use your bednights for many years if you do not want a buy out after five years.

When you use your Bednights, they are “FOC”, free of charge. They include 3 meals and 2 activities per day, in line with our “Fully Inclusive” guests. Activities at the lodge include boat cruises, bush walks, star gazing, bush breakfasts and sundowners, fishing, and cultural activities.

Park fees, Namibian Tourism Board (NTB) levies, drinks, airport transfers, lodge shop supplies (curios, clothing, etc.) and any other extras will be charged back to you or your guests.

You can use your bednights any time you want. There is no restriction on season. Between June and November we will restrict shareholder usage to 50% of the total lodge occupancy to ensure we have full paying clients. This is the peak season for Europeans and the bulk of our market.

You can let your friends, colleagues, and clients use your bednights. They only need to adhere to the same terms and conditions as noted above.

If you want to purchase extra nights, over and above your allocation, you can do so at a discount of 25% off the prevailing Rack Rate.

Bednights cannot be banked. You must use them during the current year.

Shareholder benefits and details, continued

There is the option to purchase more than one share block. Maximum shareholding is 10%.


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Why We’re a Good InvestmentAfrican Monarch Group is the umbrella company that oversees three branches of tourism services that work together to create the best possible experience for visitors to Namibia.

Namibian Collection of Conservation Businesses

Mr. Dusty Rodgers is known to us since he opened the lodges Impalila, Susuwe and Lianshulu in

the Zambezi area. He is a very reliable and competent lodge operator with a profound and solid

understanding of eco- and community based tourism.

As a collective, African Monarch Group generates awareness of nature conservation in Namibia. We work closely with rural communities and conservancies, to ensure visitor experiences are well-managed to give back to the people and wildlife affected most by the land uses. Essentially, our focus is on promoting responsible tourism.

African Monarch Group

Ulf Gruttemeyer, Transgeo Tours Namibia

The primary shareholder is Dusty Rodgers, a passionate conservationist who’s set up six very successful Namibian joint-venture lodges before founding African Monarch Lodges.

He and his partners are known tourism industry professionals, both internationally and within Namibia.


Mobile: 264 811244249

African Monarch Lodges (Pty) Ltd. is a Limited Liability Company registered in Windhoek, Namibia. It was created to develop and operate joint venture tourism lodges within Namibian National Parks and Communal Conservancies. African Monarch Lodges has management and maintenance agreements for Nambwa Lodge.

Projects AML is undertaking to date include:

Nambwa Lodge Development and Usage Plan – a shareholding opportunity being built in a concession in the Bwabwata National Park. Nambwa Lodge Pty holds the lodge lease agreements with the Conservancy.

The training academy was established to educate field guiding personnel in Namibia by developing curricula and attaining recognition from key national and South African training institutes. The goal is to build a Namibian workforce of qualified field guides. The academy is also readying guides to meet the future regulatory compliance requirements of the Namibian government.

The Academy delivers training both on Matota Island, and at various lodges throughout Namibia who are interested in having their existing guides obtain accreditation.

African Monarch Training Academy

Mashi Cultural Group Traditional Village – a destination set up in Mayuni Conservancy

Matota Island – a camp to facilitate the training of Field Guides. It is situated on the southern boundary of the Mudumu National Park on the banks of the Kwando River in the Eastern Zambezi (formally known as the Caprivi) in the far north eastern part of Namibia. It is a Joint Venture partnership with the Balyerwa Conservancy, and is committed to employing local residents where possible; skills development of local residents; and shares revenues generated through guide training and visitor stays with the Conservancy and its members.

African Monarch LodgesWe are committed to developing lodges that protect the wildlife; respect the environment; and that give back to the communities in sustainable ways.

We are accomplished tourism professionals

African Monarch Recruitment

African Monarch Recruitment & Training ensures there are trained Field Guides in Namibia and finds placements for these graduates. They also help tourism facilities find highly qualified persons to fill a wide range of vacancies. Their list of clients includes some of Namibia’s most prestigious lodges and large corporations.


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Position: Managing Director, Development, Lodge Management, Conservancy and Traditional Authority and MET Liaison, International and Regional Marketing, Reservations Experience in Lodge Developments, Operations, and Marketing: 25 years

Dusty Rodgers is a seasoned entrepreneur whose passion is conservation. He grew up in various countries throughout Africa, and

made his home in Namibia more than 20 years ago. Dusty has always spent time in the bush and rural areas, getting to know the

communities where he ventures and invests. In fact, his approach to generating benefits for local communities and respecting their

values and expectations, has helped to shape Namibia’s foundation for its network of nature conservancies. Dusty works hand in hand

with the World Wildlife Fund to develop Conservancies. He is well-known and well-respected internationally. His ability to develop

and manage lodges in the most remote areas with little or no infrastructure is not only impressive but has a widely felt social impact,

employing and training local communities to initially build and ultimately work in the lodges.

Dusty was the founding member of both Islands in Africa and more recently the Caprivi Collection of lodges. These include:

X 1993 - Kalizo Lodge - upper Zambezi X 1994 - Impalila Island Lodge - Impalila Conservancy

X 1998 - Kubunyana Campsite - Mayuni Conservancy X 2000 - Susuwe Island Lodge - Mayuni Conservancy

X 2005 - Ntwala Island Lodge - Impalila Conservancy X 2011 - Lianshulu Lodges - Mudumu National Park

X 2012 - Mashi Cultural Group Traditional Village - Mayuni X 2013 - African Monarch Training Academy - Balyerwa

Dusty also owns Fresh ‘n Wild Restaurants, Windhoek, and The Village Courtyard Suites, Windhoek (Boutique Hotel).

Dusty (Deri) Rodgers

Founding Shareholder


Mobile: 264 811244249

Directors

Position: Director, Training, Recruitment Experience: 6 years

Danica Smith is the founder and

developer of the field guide training

programs in Namibia. These programs

are delivered through her company,

African Monarch Recruitment & Training.

They deliver both onsite at lodges and at

the Academy on Matota. Danica worked

with the Namibian Academy for Tourism

and Hospitality and The Nature College,

to get her training programs off the

ground. She has successfully partnered

with the British High Commission to

train trainers, and Danica continues to

expand the training offerings. Guides

for this Nambwa Lodge development

project will also be trained and sourced

through Danica’s programs. Danica

is Vice Chairperson of the Tourist

Guides Association of Namibia, and the

Namibian Academy for Tourism and

Hospitality.

Position: Director , Marketing, Sales, Financial Director Experience: 14 years

Ian Smith is an investor in the Nambwa

Lodge development. He brings an

impressive background in business

development and sales to the table,

having successfully operated his own

pharmaceutical distributorship in

Namibia for more than 13 years. Ian

has proven himself by positioning his

company as one of the leading firms in

the country. Ian is a shareholder in all

of the African Monarch businesses, and

will be actively involved in the strategic

planning and financial management

of the lodge development. His degree

is in Marketing and Sales, and prior

to setting up his own distributorship

in Namibia, Ian worked for numerous

pharmaceutical companies to hone his

skills.

Danica Smith Ian SmithEdgar Naude

Position: Training Director, Assists with Lodge Management Experience: 15 years

Edgar is the expert in the field and

runs a tight ship when it comes to

lodge management and training. He

has an extensive list of guide and

tourism training programs under his

belt which, when coupled with his years

of service in the field, makes him an

outstanding partner in this project. He’s

practical, no-nonsense, and respectful

of everyone he works with. Edgar is

our lead trainer and knows guides

throughout Namibia as well as the

youth in the local communities. His past

management position with Susuwe

Island and Lianshulu Lodges gives him

the in-depth knowledge to assist Dusty

as required. He also has worked closely

with the Mayuni Conservancy and Mashi

Traditional Authority and will continue to

do so with this project.


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The Mayuni Community Trust has 15% shares in the Nambwa Lodge development project.

Mayuni Community Trust The Mayuni Conservancy, the Mashi Traditional Authority, and Dusty Rodgers have been partners on a number of successful projects. Some of the projects they have collaborated on include:

Kubunyana Campsite

In 1998, Dusty Rodgers built the first campsite in the area and donated it to the Mayuni Conservancy. The

site was set up with tents and campsites for the Conservancy at an expense of N$120,000. This was donated

to the Conservancy.

1

Susuwe Island Lodge

In 2000, Dusty Rodgers built Susuwe Island Lodge. Susuwe was the only lodge at the time that contributed to

the Conservancy through a revenue sharing agreement, despite the instability in the region and a very trying

time for tourism. Susuwe employed 24 community members and contributed in excess of N$300,000 in

revenue from the lodge. Plans are underway to renovate the lodge in the near future.

2

Mashi Cultural Group Traditional Village

In 2013, African Monarch Lodges (AML) established a Traditional Village for the sole benefit of the

Conservancy. AML continues to fund the project and will encourage guests from Nambwa Lodge to visit the

Village in order to boost revenues for the Conservancy.

3

Mashi Traditional Authority

AML provides on-going support to the Traditional Authority. Examples of materials and services we provide

include digging a bore hole for water, buying and laying water piping to their buildings, providing water

holding tanks, furnishing their community hall with chairs, funding local inaugurations, anniversaries, and

celebrations, and more.

4

Planned Development: Mokorro Safari Business

AML has committed to assist in funding the Conservancy to establish a Mokorro trails business and to

support it with our clients from our establishments.

5


Mobile: 264 811244249

Structure and Activities of the Mayuni Conservancy

Chief Joseph Mayuni

Dusty has a long-term and enduring partnership with the Mayuni Conservancy

X Two male trustees

X Management Committee of nine men and three women

X Staff of six Anti-Poaching Officers

X Manager

X Community Resource Monitor

X Joint monitoring unit with Kwandu, Sobbe and Mashi Conservancies

X Wildlife monitoring using annual count on foot and Event Book monitoring system

X Mayuni is part of the Mudumu North Complex collaborative management forum


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X There are few opportunities to build a lodge facility in the heart of the wildlife corridors. The Conservancies rarely issue concessions, and when they do, they are careful in terms of who they select. Their goal is to protect the wildlife, while at the same time generating employment for the local communities. As a result of there being so few development opportunities, there are also fewer experiences for visitors to choose from in this area. Yet the area is rich with wildlife which is still the primary motivator for visitors to Namibia. There are more than 1.2 million visitors to Namibia annually. Less than 5% visit the Zambezi area in Namibia. This is primarily because there is limited accommodation and it is a bit further afield than Etosha National Park and other popular Namibian destinations. It is specifically because there are fewer visitors to the Zambezi region that it is highly desirable. There is a considerable market for people wanting more exclusivity and privacy when exploring the natural surroundings in Africa. As well, there is a growing interest internationally in conservation efforts and protected wilderness areas prompting many travelers to make decisions based on the level of environmental and cultural respect demonstrated by the places they visit. We’ll couple our location in the heart of such conservation, with immediate and efficient service so that our guests always leave with great satisfaction.

X We know through our work with inbound tour operators, there is demand for well-run, quality experiences in the Zambezi area. As mentioned above, currently, there are not enough bednights in the area. For this reason, but also because we are known for the quality service we provide plus the high-end experiences, we’ve been guaranteed business from companies we’ve worked with over the years once our lodge is open. We know that we can also build far greater demand. More than 60% of visitors to Namibia are now doing their research online and booking online. While it’s been a struggle for Namibian companies to offer online payments due to our foreign currency policies, this is slowly starting to change and we’ll be setting up a website that allows visitors to book directly, and immediately. We’ll promote Nambwa Lodge via all of the relevant social networks, and will remain on the leading edge in terms of generating awareness. We intend to work with tour operators to package the area’s experiences and will generate greater awareness through our own marketing activities. Finally, we will continue to work closely with European tour operators as this is still the bulk of visitation to lodges and tent camps.

X Our primary target markets will be Europeans, North Americans, and South Africans seeking an exclusive, high-end experience in the heart of one of the last great wildlife corridors left in the world. The age range is over 35. We are also targeting incentive travel groups, corporations, and groups looking for specialized experiences. These target groups will also be encouraged to buy shares in the business.

Market Demand


Mobile: 264 811244249

We have designed the accommodation with the view to harmonise the four star structures with the landscape and surrounding vegetation.

African Monarch Lodges relies heavily on the status and integrity of the natural ecosystem and is committed to its protection. We also believe that sustainable use of such invaluable resources plays an integral part in protecting them.

Products and Activities

Lodge Overview

X Main complex consisting of a kitchen, dining room, bar, lounge, offices, shop, etc. @244 square meters. It will include the

reception, guest toilets and a swimming pool overlooking the waterholes, backwaters of the Kwando River and floodplains.

X 8 luxury tents of approximately 110 square meters each, with en-suite bathroom and spacious private deck

X 3 guide tents @33 square meters each (2 for tour guides and 1 for lodge guides)

X 1 manager’s tent @ 50 square meters

X 1 laundry room @ 50 square meters

X 1 workshop, generator room, battery room @75 square meters

X The main material that will be used for the construction of all of the infrastructure will be canvas, wooden poles, and thatch.

Lodge Activities

X Game drives - morning, afternoon and evening (night) drives (with Ministry of Environment and Tourism (MET) permission).

Wildlife includes: Lion, leopard, elephant, buffalo, steenbok, kudu, duiker, lechwe, reedbuck, crocodile, hippo, bushbuck,

interesting bird life, tiger fish, catfish, various tilapia fish species

X Boat cruises - morning and afternoon boat cruises

X Guided walks within the park

X Star gazing -night time activities conducted at the lodge

X Outside catering - bush breakfasts and sundowners at selected spots (with MET permission)

X Fishing - limited “catch and release” fishing trips, maximum 2 guests per activity (with MET permission)

X Cultural activties on request - we will visit local traditional villages, the Tribal Authority, and conduct cultural activities such as a

mokorro trip in the back waters


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Project TimelineScheduled Lodge Opening - September, 2014

Environmental Management Plan

X An Environmental Management Plan (EMP) will commence during the month of March. This

includes an Environmental Impact Assessment (EIA). This must be completed to obtain approval to

proceed with contruction on the Nambwa Lodge project. It ensures all environmental safeguards

are carried out correctly; that we meet the requirements of all relevant legislation; minimize adverse

impact on the environment; conserve the biodiversity of the site; minimize disruption to existing

management activities within the Park; and enhance the benefits to the local communities.

Anticipated Completion:

April 2014

Site Preparation

X Builder’s site setup, recruitment of building staff from Conservancy April 2014

Architectural Plans

X Architectual renderings for the site are underway. Once the EMP is completed, the Architects will

incorporate any recommendations that are different from the original plans. Final architectural

design, ordering of initial materials (poles, thatch and septic tanks and water piping)

April 2014

Construction

X Clearing of sites for structures, clearing new roads and walkways, installation of sewage and water

reticulation, pole structures for tents and main complex

May 2014

Campsites and Decking

X Decking and roofing poles and structures, finish campsites June 2014

Start Tents, Electrical, Plumbing

X Thatching, decking, construction of canvas walls, commence plumbing and electrical reticulation July 2014

Construction Almost Complete

X Complete decking, installation of sanitary ware, complete plumbing August 2014

Building Completion

X Arrival of all plant, equipment and vehicles, furniture, etc. Finish building. September 2014


Mobile: 264 811244249


[email protected]

5 successful wilderness lodges

We Have Built Many Successes

99

99A recruitment and training service for the hospitality industry

2 ecological campsites and 1 Traditional Village99

1 boutique hotel and 3 popular restaurants99

Recognized Field Guide training programs99


Mobile: 264 811244249

For a detailed Investment overview, including our business plan, capital expenditure budget, and shareholder agreements, please contact Dusty at:

Cell phone: 264 811244249;Email: [email protected]

Visit our website:www.africanmonarchlodges.com


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Documents

Investment Opportunity, in the heart of the world’s ... · Investment Opportunity, in the heart of the ... Fractional ownership in Nambwa Lodge, ... Africa. It is 520 000 km2 (similar