TREMATON CAPITAL

Trematon has quietly been building up an interesting portfolio of investments largely in the property and leisure sectors in the Western Cape. Its aim is to produce an internal rate of return of over 20% by buying undervalued assets and either squeezing an income out of them or flogging them later. While this may provide a lumpy earnings stream rather than the steady upward path beloved of fund managers, if it manages to hit the numbers over time then nobody’s going to be too concerned. Trematon’s biggest investment is in Langebaan’s finest Greek-themed holiday resort, Club Mykonos. Fortunately the Greek theme doesn’t go as far as national bankruptcy and fascists in the street, but it does mean that holiday-makers can smash a few plates and dance to Zorba without the expense of a long flight. Occupancies and repeat visitor numbers are high, and Trematon makes its money largely from its share in the casino, ancillary products such as the marina and boatyard, and renting out commercial properties such as restaurants and conference facilities. The launch of the Saldanha Bay industrial development zone could give the area as a whole a boost, and the company has undeveloped areas that could add another 500 residential units to the 362 already built. Trematon has a string of other investments in commercial, industrial and buyto-let residential property that are all performing well, and the company looks set to build on its recent history of solid results and grow into an operation of scale. Vital numbers on November 25 2013

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