Wesley Cowan
Galetti Auction
General Manager
South Africa’s lesser-known coastal towns have quickly become preferred holiday destinations within easy reach of major cities.
Offering excellent value, unspoiled scenery, ample outdoor activities, and a quieter – more intimate – holiday experience, remote towns like Coffee Bay, Cintsa Beach, Nature’s Valley, Storm’s River, Struisbaai and Kosi Bay deliver an unmatched holiday experience.
“Off-the-beaten-path destinations like Coffee Bay are gaining traction for those looking to escape crowded holiday destinations like Cape Town, Umhlanga, Knysna, Plettenberg Bay and the Cape Winelands. This trend mirrors the global shift toward sustainable tourism and authentic local experiences,” says Wesley Cowan, Managing Director of Galetti Auction.
Why Coffee Bay?
Located on the Wild Coast of the Eastern Cape and just 250 kilometres outside of Durban, Coffee Bay is home to fewer than 300 locals.
Speaking to its unique allure, Cowan adds that Coffee Bay is anything but commercial, providing a holiday experience that’s hard to match. “This small coastal town attracts backpackers and adventurers drawn to its natural beauty, including the iconic Hole in the Wall rock formation. Activities such as surfing, hiking and cultural tours also make it a unique spot.”
“The locals have worked hard to preserve the heritage of this remote town, and as a result, you will hardly find any shops in the area other than a small spaza shop,” he adds.
Coffee Bay’s renowned Hole in the Wall Retreat comes to market
However, visitors are hard-pressed to find accommodation when it comes time to frequent the town. “With the town being largely underdeveloped, visitors are left with very few accommodation options,” says Cowan, pointing to around seven accommodation hotspots within a 7km radius.
“It’s also vitally important that these properties are maintained as the locals rely heavily on income generated from tourism.”
A rare investment opportunity has come to market with the auction of the iconic Hole in the Wall Retreat, perched at the water’s edge. “This is one of the largest resorts in Coffee Bay, and it’s currently fully operational, with both new and repeat visitors on its books. The properties are also fully staffed, with the owners focused on preserving the livelihoods of their loyal employees.”
Owned by First Group and spanning a total ERF size of 13,062m² and a GLA of 3,196m², this property presents three exciting investment opportunities. “Bidders will have the opportunity to bid on the entire property (1), the hotel, backpackers and vacant land (2) and/or the chalets and houses (3).”
Spanning 1,397m2, the hotel comprises 11 self-catering hotel suites on the water’s edge while the backpackers, spanning 536m2, features 11 rooms; there is also 8,355m2 of additional development land up for sale and 10 chalets/houses available for purchase. “The hotel has a bar, shop, restaurant, swimming pool, a kid’s playground area, spa, reception and staff accommodation,” comments Cowan.
“Each thatched chalet offers one to four private bedrooms, spacious living rooms, and kitchenettes. The backpackers sleep between three and five per room and are popular for a quick stopover.”
Cowan says about the development opportunity: “Developers may choose to go one of several routes here. They may use it for agricultural purposes, expand the property for hospitality, or create a new mixed-use development.”
With three opportunities on offer, Cowan believes this property may also present an opportunity for collaboration. “Whether there are one, two or three final bidders at auction, the property leaves plenty of room for collaboration among keen developers and investors and has huge potential,” he adds.
Furthermore, Cowan advises that the sale involves the transfer of shares in a shareblock, granting a right of use over the connected property through a lease valid until 2084. “The business operations (hotel & backpackers) are included in the sale, and the lease will transfer to the shareblock upon full payment at property transfer.”
He concludes: “We anticipate high demand on auction day based on the property’s location, its untapped potential, a steady stream of visitors, and the unique proposition that the area presents.”
The auction takes place at 12 pm on 04 February 2025 at the King David Mowbray Golf Club in Cape Town.
