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Gary Player’s R50m farm is a test for trophy properties

Dec 14 2016 07:10
Colin McClelland, Bloomberg News

Johannesburg - Golfing legend Gary Player is testing South Africa’s prime property market by selling the farm where he spent more than half his life nurturing his other passion of breeding racehorses.

The 81-year-old is asking R50m for the 1 431-hectare ranch in the Karoo, a semi-desert landscape almost midway between Johannesburg and Cape Town. Player plans to wind down after a career spanning five decades, 165 tournament victories, including nine Major Championships, and the registered trademark as the world’s most travelled athlete.

“We’d like to downsize because this is quite a big farm,” Player said by phone. “I don’t think I’ll retire until I’m 90 at least. But we’ve started to prepare.”

Player’s property is coming to market as top-end house prices in South Africa buck a slump, helped by a weak rand that has spurred demand from overseas buyers. For the rest, home values are shrinking, hurt by an economy expanding at the slowest pace since the 2009 recession, rising unemployment and turmoil on the political front, in which President Jacob Zuma is fighting to retain power after being implicated in a series of scandals.

“Wealthy people from countries such as Angola, Ghana and Nigeria are increasingly buying homes in South Africa,” said Andrew Amoils, head of research at New World Wealth, a consultancy based in Johannesburg. “Even the local number of high-net worth individuals increased 5% this year,” he said, referring to people who have more than $1m in liquid financial assets.

Gary Player's R50m stud farm. (Photo: supplied)

Property headwinds

Prices for real estate going for more than R20m rose 4% in the first nine months after being adjusted for inflation, he said. The consumer price index averaged 6.2% through September.

Existing homes sold for between R4.4m and R16.3m fell by 1% in value after inflation this year, according to data compiled by Barclays Africa. The price of a so-called affordable home of less than R600 000 dropped 2.1%, while the middle-segment declined 1.2%, said Jacques du Toit, a real estate analyst at Barclays Africa in Johannesburg.

“South Africa’s high-end property market continues to sell properties at a good pace and is largely unaffected by political and economic headwinds,” he said. Overall house prices are set to fall 1.6% this year, the first contraction since 2012, and another 1.7% in 2017, he said.

The farm has attracted a “huge response” from foreigners and locals since going to market in mid-November, said Rory O’Hagan, the chief executive officer of Chas Everitt International Property Group’s luxury-portfolio division.

Bang for buck

“Property in South Africa is offering excellent value,” he said. “You get incredible bang for your buck.”

Player’s ranch is among several luxury properties on offer from the Johannesburg-based realtor. A 243-hectare family owned farm in Stellenbosch, which makes wine and offers views of Cape Town’s Table Mountain, is listed for R115m. A home inside an equestrian estate between Johannesburg and Pretoria with a Japanese teppanyaki bar and alfresco amphitheatre is going for R85m.

Britain’s exit from the European Union, the election of Donald Trump as US president, recessions in Russia and Brazil and political unrest in Turkey mean that investing in a trophy property in South Africa doesn’t “sound that bad” to potential investors, O’Hagan said. And while the rand has gained 14% against the dollar in 2016, the currency has weakened each of the previous five years, losing 57% of its value.

gary player

Great views at Gary Player's farm. (Photo: supplied)

Broadway Flyer

There is a shortage of stock at the top-end of South Africa’s real estate market and homes priced at between R18m and R35m, said Denise Dogon, the owner of Dogon Group Properties Group, which is also marketing Player’s farm. Her company, which has sold properties to African heads of state, this year got a record R290m for a house in Cape Town.

For Player, moving to Plettenberg Bay on the southern coast will be a big change from the farm in Colesberg he bought in 1974. Known as Rietfontein, the ranch has produced more than 2 000 winners. It’s most notable result was Broadway Flyer, which in 1994 finished second in the St Leger Stakes, the oldest and longest of Britain’s classic races.

The property includes an enclosed horse track, chapel and three-bedroom guest house.

“Other than my parents dying or some of my family members, it will be the saddest moment in my life to sell this farm,” Player said. “It’s a paradise.”

Player has been interested in horses since childhood. He would ride on a friend’s farm on weekends while his father worked in a gold mine, his brother fought overseas in World War II and his sister attended boarding school.

“We’d come back and wash them down and wipe the sweat off and remember the old saying, ‘the outside of a horse is good for the inside of a man,’” he said. “I don’t know what is more exciting, the golf or the breeding of horses.”

More photos from Gary Player's farm:

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gary player
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