This month, we spoke to Tom Clode and Tony Neves about Franschhoek’s newest Real Estate company, Fine and Country, and asked them what was different about their offering compared to the others?
Tom Clode: Well first up, we’re approaching this very differently. The market is generally divided into two sectors: there’s the sales side who dabble in holiday and long-term lets and there’s the letting agents that don’t to do sales. We’re combining the two into a one-stop property shop in the way that none of the other agents are. With 7 full-time staff we have the infrastructure to do all of the above. It’s unique.
The Month: And is the approach working?
TC: Yes. We have over 20 holiday homes in the 4 and 5 star-equivalent bracket, 25 long-term lets and a sales mandate book of almost 20 properties and growing. We made our first sale this week of a holiday home owned by an overseas couple to local buyers. Also, the other key difference is we don’t operate on an agent commission basis. There are four agents who are equal partners; Tony, Dale, Heidi and myself, so you don’t get internal differences within the office in relation to commission – a system that usually means you compete with your colleagues. Our ‘common objective’ approach gives the client a better service.
TM: So how did it come about?
TC: It is basically a merger between the two companies Franschhoek Cottages and Franschhoek Rentals. Cottages was set up by Heidi and myself about two years ago where we managed about 15 holiday homes and Rentals was affiliated to Seeff and was bought by Tony and Dale in December. We bought the Fine and Country licence in December and merged the companies. Adding the Fine and Country brand gave us the ‘property supermarket’ package.
TM: So it’s a licence to operate, not a franchise?
TC: Ja, there’s no royalty fee on sales just a licence fee. A franchise comes with a big fat rule book which tells you how to operate what you can and can’t do whereas the Fine and Country licence is aimed at independent operators who want to align themselves to an upmarket brand. We chose them because they are an upmarket brand and we perceive the Franschhoek Valley as an upmarket area. Fine and Country are international with 200 offices in the UK and others in Dubai, Mauritius and Thailand, yet South Africa is its second biggest market with over 50 offices. There’s a particularly strong UK/SA connection and exposure to the national footprint and we have already seen a lot of referrals from Gauteng consistent with semi-gration to the Western Cape.
TM: So what is your objective?
TC: To become a significant player in Franschhoek. We're already seeing that our business plan works with short-stay guests wanting to become owners and owners of guest cottages wanting to sell through us. There is a continuing trend in foreigners coming to visit who fall in love with Franschhoek and want to purchase a home. So when we look at the buyer profile here we think we have a network that will produce a significant market share.
TM: And does your licence territory extend right through the valley?
TC: Basically to Val de Vie (so it includes Pearl Valley) to Boschendal and over the Franschhoek Pass to Threewaterskloof. These ‘Lifestyle Estates’ suit our Franschhoek buyer profile. We manage a number of properties there also for owners who want piece of mind on returning to their properties or when sending family or friends so we’re seeing plenty of synergy there too.
TM: And lastly Tony, the World Cup?
Tony Neves: Well the big story about the World Cup is that it’s not going to be as big a story as we thought! Primarily, I think, with games in Cape Town in the off-season, a lot of the Guest Houses and Hotels are running fairly low occupancies. So much of the slack will be taken up there leaving us largely unaffected. Also, with Franschhoek being quite a way from where the games are played it’s unlikely people will stay here rather than Cape Town unless there’s the spill-over, of course.
TM: So the benefit to the valley is likely to follow after the World Cup not at it.
TN: We believe so. The exposure we’ll get at the tournament will benefit Franschhoek over the next three years. People will come back when they see how much there is on offer here which suits our approach since we’re here for the long term – we’re running a marathon not a sprint. We’ll have a High street presence within the next couple of months and are already using the branded vehicles. Certainly buying sentiment has changed for the better in the last few months and we’re well positioned for the future.