SALES PROPOSAL BLUE MOON NELSPRUIT - www.blue-moon.co.za
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SALES PROPOSAL
BLUE MOON NELSPRUIT
www.blue-moon.co.za
Blue Moon Nelspruit
Concert Venue
@nelsbluemoon July 2014
INDEX
Page
BUSINESS PROFILE . . . . . . . . . . . . . . . . 3
BUSINESS RESUME
History . . . . . . . . . . . . . . . . . . . . 3
Infrastructure
Venue Components . . . . . . . . . . . . . . . 4
Sound & Stage Lighting Equipment . . . . . . . . . . 4
Kitchen Equipment . . . . . . . . . . . . . . . 4
Bar Equipment . . . . . . . . . . . . . . . . 4
Power and Venue Lighting Equipment . . . . . . . . . 4
Water and Reticulation . . . . . . . . . . . . . . 4
Furniture and Fittings . . . . . . . . . . . . . . 5
Art and Décor . . . . . . . . . . . . . . . . . 5
The Dam . . . . . . . . . . . . . . . . . . 5
Buildings . . . . . . . . . . . . . . . . . . 5
The nature of the business . . . . . . . . . . . . . 5
Reasons for selling the business . . . . . . . . . . . . 5
Costing . . . . . . . . . . . . . . . . . . . . 6
Purchase price . . . . . . . . . . . . . . . . . 6
Proposed nature of sale . . . . . . . . . . . . . . 6
Future business potential for Blue Moon . . . . . . . . . 6
Financials . . . . . . . . . . . . . . . . . . . 7
IN SUMMARY . . . . . . . . . . . . . . . . . . 7Pg 3
BUSINESS PROFILE
Name of Business: ONCE IN A BLUE MOON PROMOTIONS CC
T/A BLUE MOON
Contact Details: PO Box 16599, Nelspruit 1200, Mpumalanga, South Africa
+27 84 505 4891
Nature of Business: Music r e l a t e d events, private f u n c t i o n s , v e n u e h i r e , c h a l e t a n d
c a m p i n g accommodation
Location: 10km South of Nelspruit, Mpumalanga, South Africa. Portion 24, Farm Claremont
GPS Coordinates: 25° 34' 48.27" South
31° 03' 17.91" East
Size: 24 hectares
Zoning Status: Zoned as “An Event, Functions and Conference Facility and Accommodation to
serve the Facility” as directed by the Development Facilitation Act of 1995
Liquor License: Special License Other (permitted times of operation 10h00 to 02h00 on any day)
Years in Business: 14 years
BUSINESS RESUME
HISTORY
Blue Moon was bought in December 1999 as a 24 hectare farm with two dwellings zoned for agriculture.
Two financial partners (married), namely Anthony Bumstead and Renate Scholle, purchased the farm in the
name of a close corporation (CC) with one member, namely Renate Scholle. A second CC, Once In a Blue
Moon Promotions CC, also with only one shareholder, namely Anthony Bumstead, is the operational entity
and runs the events. The team has a third non-financial partner, namely Pete van Halderen.
The venue was built in one year starting in December 1999. Over the years various improvements and
additions have been made (see Infrastructure below). Blue Moon hosted its first function in December 2000
and has been run throughout by the three team members mentioned above.
Known to the music industry countrywide as the best venue of its kind in South Africa, Blue Moon is a totally
unique indoor/outdoor venue and the only venue of its type in the country. This had been said by so many
musicians and influential people from various platforms, that however far-fetched it seems, it is
substantially true. The high level of versatility the venue offers makes it suitable for hosting music concerts
and provides a unique setting for closed functions. Blue Moon has been meticulously maintained
throughout the years and is thus in top condition with no signs of neglect.
Please refer to Blue Moon's website www.blue-moon.co.za for a general overview of the venue and its
potential, or visit our facebook page at www.facebook.com/bluemoonnelspruit.Pg 4
INFRASTRUCTURE
Venue Components: The Venue itself includes:
Kitchen
Bar
Backstage
Backstage Deck
Stage with Drum Raiser and detachable Railing
General Store-room below Stage
Indoor Ablution Facilities
Liquor Strong-room
Cold-room
Outdoor covered Bar
Outdoor Deck
Landscaped Amphitheatre
Second covered outdoor Stage
Fireplaces
Permanent Tables and Benches
Additional outdoor Ablution Facilities
Parking Facilities
Camping Area
Ablution facility in Camping Area
Equipment
Sound and Stage Lighting Equipment:
Blue Moon has a permanently installed fully operational Italian Montarbo sound system. Detailed
Sound and Stage Lighting Specs are available on request.
Kitchen Equipment:
The kitchen is equipped with gas burners, deep freeze, fridge, pots, catering utensils, chip fryers,
commercial griller, spits, urn and various other catering utensils.
Bar Equipment:
The bars are equipped with all the normal bar paraphernalia, being deep freezers, cold room and general bar
merchandize.
Power and Venue Lighting Equipment:
Blue Moon is powered by an independent power cable running directly from the transformer. It has 32 and
64 amp three-phase plug points. All the lights in the venue are on dimming switches to create different
ambiences. The outdoor and parking lighting is peripheral and does not interfere with visual access to the
stage. In the eventuality of a power failure, Blue Moon has a 7kW stand-by generator able to effectively run
the stage and emergency lighting connected to a manual turn-over switch.
Water and Reticulation:
Blue Moon is self-sufficient through the provision of water from the on-site dam. Pumped water is gravity-
fed to the houses by a system which is user friendly and easy to manage.Pg 5
Furniture and Fittings:
Blue Moon has a large amount of tables, chairs, mushroom heaters, a lectern, braziers and much more in
order to set up a variety of concerts and functions. We visualize all of these to be part of the sale and will as
such draft a comprehensive and detailed inventory to accompany the ultimate sales agreement.
Art and Décor:
The pictures in the venue are unique and original paintings commissioned specifically for the venue and
painted by the well established artist, Judy Bumstead. The rest of the décor, including instruments, pictures
and other memorabilia tells the story of Blue Moon over the years.
The Dam:
The boundary of the farm runs through the middle of the dam. The dam lends itself to swimming, fishing and
other recreational uses.
Buildings:
2 Family homes
Labourers' quarters
Workshop / Double Garage
Second Strong-room
3 Chalets (each sleeping 7)
Bunkhouse (sleeping 6) used as office
Swimming Pool
Storage Shed
THE NATURE OF THE BUSINESS
The current monthly operational costs of Blue Moon, including salaries, overheads, telephone and
insurance, amounts to R40 000. Income from the rental of chalets and sale of food at the venue is not
recorded through the business. A significant amount of income from the business comes from bar takings
and the sale of concert tickets at the gate, both of which are cash incomes. Artists' fees for music concerts
are negotiated with bands or their agencies to be either a fixed fee or, more often, a door-deal.
For many years, the business has enjoyed several well established sponsorships from the following sponsors
- approximate annual value:
• SA Breweries R100 000
• MK R 35 000
• Cuervo R 20 000 plus
• Klipdrift R 30 000 plus
Approximate annual Total R200 000
REASONS FOR SELLING THE BUSINESS
Having been in the music industry for 22 years and running Blue Moon for 14 years, the married partners
separated, and with the oldest partner now being 64 years of age, the team wishes to go into different
directions, with each one wanting to start a new chapter in their lives.Pg 6 COSTING The farm was bought in 1999 for R545 000. Building costs of the venue amounted to R900 000 and the project took one year to complete. During the following 10 years approximately R100 000 per annum was spent on further improvements and additions, namely renovations to the family homes, cool-rooms, chalets, strong-rooms, second bar, second stage, outdoor deck, pumps and irrigation systems, backstage deck, road building, lighting, parking areas, camping areas, additional ablution facilities, store-room, swimming pool, storage shed, landscaping and a jetty at dam. PURCHASE PRICE Farm purchase at estimated current market value R1 700 000 Venue at estimated replacement value R1 500 000 Sound and Light Systems R 250 000 Improvements at estimated replacement value R1 770 000 Zoning Rights / Liquor License R 100 000 Art and Décor R 80 000 Movable Assets as per Inventory R 100 000 PURCHASE PRICE R5 500 000 PROPOSED NATURE OF SALE The purchaser would take over the business as a going concern including fixed and movable assets without any liabilities. FUTURE BUSINESS POTENTIAL FOR BLUE MOON As we, the three partners of Blue Moon, are nearing the end of our tenure, we are not strongly focused on this aspect and thus simply present some of the obvious options, which no doubt have considerable potential to be developed. Accommodation: As Blue Moon is fully rezoned for accommodation, this aspect of the business lends itself to further development. Additional accommodation facilities around the dam would guarantee a scenic setting. Corporate Business: Blue Moon has never marketed itself as a conference, team-building or training facility, but focused on entertainment and celebratory functions, namely birthday celebrations, weddings, year-end parties etc. The property is ideally situated to develop this potential business. Festivals: Blue Moon has not developed a calendar fixture in the form of an annual festival, although all the necessary facilities do exist, thus offering further untapped potential. Government Functions: The local Government has numerous functions of all types and all year round, and although we have hosted the Legislature Opening after-party for three consecutive years with big name artists at each event, by and large Blue Moon has not marketed itself extensively to Government. Outdoor Adventure Activities: With Blue Moon providing extensive indoor facilities, accommodation, a dam, mountains and large even and grassed areas, all in a country setting, hosting outdoor adventure camps for youth and school groups could be turned into a thriving and profitable business option.
FINANCIALS
It is very difficult to present a simple set of financials due to the deliberately complex structure of the
business, being two operational CC's, the presence, for a period of time, of a third separate financial entity,
namely the bar, the frequent use of door deals, the fact that incomes from the rental of the chalets and sale
of food at the venue are not recorded and the complexity of large cash incomes.
For 2002 to 2008 Beckenstrater and Associates were our accountants with Greg Rattray of that firm
attending to our Blue Moon accounts. Since 2009 our books have been done by M P Nel Financial Services.
With current monthly overheads amounting to approximately R40 000 and an annual income of R 1 500 000
from existing income streams, it is clear that Blue Moon presents a viable business opportunity with the
added advantage of exploiting other significant revenue streams without too much effort.
[Financial Statements are available upon request and subsequent to the signing of a Confidentiality
Agreement.]
IN SUMMARY
Blue Moon presents an investor with a business opportunity which lends itself to, and certainly is ready for,
expansion and innovation. Blue Moon is an established business with an excellent reputation, extensive
development potential and in a much desired area outside a rapidly expanding city, Nelspruit. The latter is
evident by numerous up-market developments having established themselves along the Uitkyk Road during
the time since Blue Moon became operational, i.e. Shandon Estate, Cussonia and Noordsig Estates.You can also read
