October 2023 Newsletter
On Saturday, 14 October 2023, Al Mabroor Agri held its Annual General Meeting at the Beefcor Feedlot outside Bronkhorstspruit, Gauteng. Thanks to the joint efforts of the Al Mabroor and Beefcor teams, the event was presented in an entertaining and insightful manner for the attending investors.
The attendees were able to view various assets owned by Al Mabroor Agri. This included pens of cattle of various ages and sizes, sheep and Wagyu. Fuel transport trucks of SX Fuels, agricultural equipment manufactured by Agristaal, a combine harvester in use for maize harvesting, cattle transport trucks, macadamias produced by Khuvuka Farming and raw maize produced on farms owned by Al Mabroor Agri, all forming part of the assets of Al Mabroor Agri and owned by investors, were on display. Additionally, a live sheep shearing demonstration was performed so that the attendees could experience it firsthand.
Al Mabroor Select also had a stand at the event, displaying its high-end and quality products available to investors and the public, and provided the opportunity for attendees to place Qurbani orders for next year at this year's prices.
As many investors attended with their families, various children's activities were arranged, including pony rides, a dedicated play area and a jumping castle.
The day included a range of speakers covering various relevant topics, such as agricultural economist Gerhard van den Burgh speaking about current market conditions in the broader agricultural sector. Konsortium Merino founder Gawie van Heerden, talked about the opportunities in sheep farming in South Africa. The current Shariah Consultancy Committee of Al Mabroor Agri and the full Board of Directors of Al Mabroor Agri were also in attendance.
During the event, Mufti Shafique Jakhura, spoke about the measures that was put in place by the Shariah Consultancy Committee to ensure that the Al Mabroor Agri Fund is totally Shariah Compliant. The Shariah Consultancy Committee consists of Mufti Shafique Jakhura, Sheikh Mohammed Carr and Mufti Bilal Jakhura.
Non-Executive Director Yaseen Badat spoke about the expansion of the Board with new members representing the investor community, whose skills and experience have supported the Board in governance and in protecting investor interests.
Van der Byl Roux, Head of Compliance at Al Mabroor, spoke about all the measures that has been put into place by the Al Mabroor Agri Board regarding fund governance and financial structure to comply with all the FSCA regulations.
Wiaan Smit, CEO of Al Mabroor, gave an annual review of agricultural operations, emerging export opportunities, headwinds and challenges, responded to frequently asked questions received from investors and new investment opportunities in the pipeline. The main message that was presented was one of vast investment opportunities in the agricultural sector. He informed investors that Al Mabroor established a very solid foundation over the past 5 years and that they would like to build on this in years to come. The acquisition of the Beefcor feedlot forms an extremely valuable asset in the Al Mabroor Agri Fund and Beefcor has great potential to provide investors with very strong and stable returns in years to come.
Jaco Odendaal, the Crowe Partner responsible for Al Mabroor Agri audits, presented the financial overview, the annual financial statements and significant matters considered during the annual audit, with copies of the full financial statements made available for inspection by attendees.
A spit braai lunch of lamb and Wagyu was provided, with investors also offered the opportunity for a tour of the Beefcor feedlot and farm during the lunch break.
The event was concluded by Mufti Bilal Jakhura, ending another successful Annual General Meeting and Investor Day of Al Mabroor Agri.
The full AGM presentation and audio will be available on the Al Mabroor website by Thursday 26th of October.
Al Mabroor Agri acquired Beefcor towards the end of 2022. Al Mabroor Agri did a capital raise at the time to acquire the farm, the feedlot and the 11 000 animals in the feedlot.
After repaying investors that came in for the 6-month option of providing capital to secure the transaction, a net amount of R 125 million remained in Al Mabroor Agri and was utilized towards purchasing Beefcor. Al Mabroor Agri provided the balance of the purchase amount from their own cashflow and cash reserves.
We would once again like to thank our investor community for the confidence that was shown in Al Mabroor during our Beefcor raise late last year. Although there seems to be a little bit of misunderstanding regarding the transaction from investors, the reality is that the Agri Fund now boasts a strategic asset with a fair market value in excess of R500 million. Beefcor is a fantastic asset in the Al Mabroor Agri Fund.
Beefcor is a cattle feedlot with the capacity to keep 45 000 animals. At full capacity, the Beefcor feedlot has the potential to provide Al Mabroor Agri with very strong and stable returns. Currently there are around 20 000 animals in the feedlot and as a result the true potential of Beefcor is not being realized. To become one of the market leaders in the beef production sector, we need to fill up the feedlot and the sooner we do this the better for all investors.
This will undoubtedly benefit every investor in the Al Mabroor Agri Fund over the short to medium term.
Al Mabroor Agri would like to acquire a further 10 000 animals over the next 2 months and would like to provide investors with a separate opportunity to do so. A total of R 120 million is needed to acquire and feed the 10 000 animals until they are ready to be sold.
The repayment terms on the R 120 million investment will be as follows:
R 5 million per month starting at the end of month 7 for a period of 6 months.
R 10 million per month starting at the end of month 13 for a period of 12 months.
Total repayment of R 150 million and a Return on Investment of 17,36% per annum.
For full detail of any new opportunities, kindly contact your financial advisor or send an email to email@example.com.
Al Mabroor acquired a struggling Hospicare around 3 years ago and build the business to become a very profitable and significant player in the medical space.
Hospicare offers daycare, short term, overnight and long-term permanent residence in either full frail care facilities or assisted living environments.
Hospicare's vision is to become the ultimate service provider when it comes to assisted living, frail care, post and sub-acute care, rehabilitation, dialysis and home care. They aim to provide a comprehensive approach to patient-centered care and support services that will allow the frail population to be cared for in a safe in-patient or home-based environment. They currently runs 205 beds from 5 facilities in Stellenbosch, Houghton, Heidelberg and two in Roodepoort.
Hospicare has the opportunity to acquire and operate a further 200 beds in a facility in Pretoria and will need a further R 20 million working capital. The company will be able to pay returns of 12% per annum, with an additional annual profit share distribution estimated at between 5% and 8% per annum.
For full details please visit the Hospicare website at www.hospicare.co.za
Al Mabroor is offering a new investment opportunity to investors looking to invest directly in the alternate energy sector. The Fund will consist of 2 business units, namely a generator leasing business and a solar power equipment distribution business. The investment will be affected in accordance with a separate En Commandite Partnership Agreement relevant to the specific trancsaction.
Loadshedding combined with ageing electricity infrastructure has had a profound effect on the lives of all South Africans. According to a recent article which appeared on businesstech.co.za the intensity of blackouts in the country grew by 27.7% between 2022 and 2023, escalating from an average stage of 3.11 in 2022 to 3.98 currently.
Reliable back up power has become a necessity for South African homes and businesses.
Generator Leasing Business
Large scale industrial businesses, mines and events venues can no longer operate without a backup generator. Our model is to serve these businesses by leasing generators to these businesses on either a long term or daily lease. Having already secured long term leases for 500kva and 700kva generators we are in a position to start earning income from the onset.
Solar Equipment Distribution Business
We have secured an exclusive distribution agreement with Sunpal, an internationally recognized high-tech company specializing in R&D, production and sales of solar energy-related products such as solar panels, solar cells, solar air conditioners, solar water pumps and inverters. For further information on Sunpal please visit www.sunpal-solar.com. There are further agreements in place with electrical wholesalers and installers. Equipment will only be imported once a firm order has been received.
Thank you once again for your continued support. We look forward to bringing you more compelling content in the future.
Secure your investment, the Shariah Compliant Way.
Al Mabroor Team