I get encouraged when an entity goes out of its way to cater for the small investor. So I sat up when I saw that Oceans Umhlanga, which aims to develop an upmarket hotel in Umhlanga, is allowing small investors to participate by offering a minimum participation hurdle of 50 shares (worth R1,000/investor). In the marketing material, gaming and leisure kingpin Vivian Reddy (a key Oceans shareholder) proclaims: "It will give me the greatest joy to see even an average earner point to this iconic, internationally renowned Radisson Blu Hotel and proudly state — ‘I am one of the owners.’" I do, however, have misgivings about small shareholders participating in what is essentially an unlisted single-asset investment. Yes, there is a certain thrill to being an owner of an upmarket hotel property, but it may be some years before cash flows translate into dividends. The prospectus — which targets a capital raising of up to R616m — pencils in revenue of R149m for the year ending December 2019 a...
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