Our Portfolio

The result of LIH’s investment philosophy is the establishment, so far, of nine parallel investment pillars within the overall portfolio, which comprise a total of 43 existing ventures, some of which are illustrated below:

Restaurants & Fast-Food Brands

The future motto for this sector is one of management-by-information and to give a rapid yet considered response as the new market shapes and settles (both locally and globally).

This sector represents less than 20% of the investment portfolio. It is a sector that was severely impacted by the adverse trading conditions brought about by the COVID-19 global pandemic in 2020/2021.

This has necessitated a deliberate and assertive review of the operating strategy to account for the changes in consumer behaviour within a post-COVID world.

 

Immediate successes include the establishment of the NYAMALICIOUS sub-brand and mobile-shop deployment during the fourth quarter of 2021. The effect has been positive immediately, allowing for maximum flexibility insofar the selection of core-aspects sites, rapid-relocation, and spontaneous pop-up promotions; as well as the sale/appointment of several new and exciting franchisees to the QSR-group. We remain acutely aware of the ongoing consumer shift from sit-down dining to home-based meals and continue to actively pursue this market.

 

A material investment has been made to a mobile-first management systems (i.e., bespoke in-house application) which places performance dashboards in the hands of our management team and allows rapid-response to the ever-present shifts in the marketplace.

The first expansion is the acquisition of the majority (51%) equity stake in Sausage Saloon (Pty) Ltd. This is the single largest hot-dog franchise in South Africa, and includes a clear growth-plan for expansion into the previously unserved but emerging-market through a combination of mobile-trailers and pop-up stores.

  • The national footprint of Sausage Saloon (Pty) Ltd. currently comprises more than 100 franchised operations.
  • An additional 50 is scheduled to be opened for the remainder of 2022,
  • with identified and accessible growth opportunities for further expansion of up to 600-sites over the next 2 to 3 years.

 

Plans have immediately been agreed to internationalise the brand, with a fully funded 20 store proof-of-concept approved for Dubai during 2023/2024. Further medium-term expansion territories include Oman, Singapore, Mauritius, Australia & New Zealand.

National Fast-Food Hot-Dog Franchise Brand

The national footprint of Sausage Saloon (Pty) Ltd. currently comprises more than 100 franchised operations.

Hospitality: Sleepover – International

The appeal of the brand/business-model is evidenced (amongst other) in SleepOver’s recent attraction of a new CEO from Nike SA.

The post-pandemic environment has positively boosted the hospitality sector in South Africa and even the broader Africa. Following the successful venture capital investment (i.e., incubation) of the rapid-deployment (pop-up) motel concept, SleepOver, in South Africa, the company has recently expanded to Mauritius from where it will be operated as an international base of operations across the African continent and abroad.

SleepOver is a low-cost accommodation business focusing on comfortable, secure, affordable accommodation to travellers. Franchises are being established adjacent to en-route filling stations, at the entrances to secondary towns, at tourism destinations and in suburban hubs. The principle of the motel is to offer affordable and accessible accommodation to a larger portion of the population – especially budget travellers. This makes the business ideal for expansion into other countries as the idea is also unexplored in these terrains.

 

Employing the vast franchising (i.e., licensing) expertise of the group, the next phase of growth will include the establishment and sale of multiple international master-territories as well as the appointment of in-country partners to manage such expansion.

 

  • The growth of the market potential in South Africa is estimated to include more than 75 motels.
  • In the larger Africa it is estimated to be between 200 and 400 motels.

 

Enquiries are presently being fielded from Australia and the United States, which market potential is yet to be assessed, but could easily overshadow the South African and African potential and justify the ‘unicorn’ label applied to the (initial) investment.

The property sector has shown growth in the post-pandemic environment. Property is a successful tool for investment and shopping malls with strong anchor tenants prove to attract consumers. In Montana in Pretoria, a local strip-mall shopping centre, Wingtip Crossing, has been acquired. The centre has attracted Woolworths as a new anchor-tenant and the centre will undergo substantial upgrades.

Opportunity has accordingly presented to partner with a longstanding and reputable developer as majority shareholder and development financier alongside Investec as existing bankers. This is defined as phase-1 development only, phase-2 will present various complementary development and commercial opportunities and in respect whereof, a first option of refusal has simultaneously been secured.

Property: Wingtip Crossing – Montana

There are discussions to align the various food-franchising brands of the LIH group with the plans of the developer and hereby secure prime-sites for mutual-benefit expansion.

An investment in knowledge pays the best interest.

Benjamin Franklin

South Africa has a dynamic healthcare, and by extension medical, sector. Private healthcare remains the most lucrative sector within healthcare. The Medical Franchise Company was initially established as a specialist medical eco-system for the provision of medical-equipment finance, the development of a national dialysis clinic network and the (in-house) supply of medical-consumables through a franchise-type model. But during 2020/2021, the venture has also experienced severe trading pressures because of the pandemic and the attaching and unforeseen loss-of-life of many former dialysis patients.

An aggressive review of core strategy immediately followed at the end of 2021. The company is now actively in pursuit of the dental and pathology markets, each of which have seen material upswings during and following the pandemic.

Immediate successes in the fourth quarter of 2021 include:

  • the rental and sale of multiple medical devices into Namibia and Nigeria, and
  • the establishment of a sub-service pathology laboratory locally.

 

  • Expressions of interest have been received insofar the sale/purchase of the dialysis clinics, and
  • the company has entered discussion regarding our acquisition and rapid expansion of a network of GP clinics servicing the ever-growing emerging (township) market in South Africa.

 

Whilst remaining a highly regulated, resource-intensive and competitive market, there remains opportunity for systemisation, automation, and back-end supply-chain management/ownership (i.e., application of our core franchising expertise), which holds the promise of material future returns on investment/capital.

Medical: Medical Franchise Company

Expressions of interest have been received insofar the sale/purchase of the dialysis clinics.

MedicinalCannabis Grower

The enterprise strategy includes the establishment, within the same Group (HoldCo) structure, of a state-of-the-art, 2 ton, medical-grade cannabis growing facility in South Africa (expandable immediately to 12 ton).

The second expansion is the acquisition of the material (51%) equity stake in BPure Growers (Pty) Ltd. The enterprise strategy includes the establishment, within the same Group (HoldCo) structure, of a state-of-the-art, 2 ton, medical-grade cannabis growing facility in South Africa (expandable immediately to 12 ton), as well as specialist extraction and processing facilities and a specialist retail division.

The acquisition of this company is exclusively targeted towards the premium international EU-GMP (European) market and underpinned by multiple guaranteed EURO-based international take-off agreements.

 

The company is fully licensed in accordance with South African and international standards. It is also licensed as a special joint-venture between a leading South African property developer, international certified master grower, and LIH acting as project funder.

Southern Africa consists of countries that have resource-rich land, making these countries ideal for various agricultural activities. Snail farming in particular is quite in demand as snails can be used for various functions. NAMSnails is a start-up Namibian facility employing patented European technology to be the largest producer of high-quality edible and cosmetic-grade snails on the African continent.

The company has been executed as a majority equity-stake joint venture and complemented by structured mezzanine-finance, the company is ensured to have substantial short-term ROI’s and medium-term capital-growth.

 

Ownership of the start-up facility includes the sole right for the on-continent establishment of a world-class snail-processing plant (factory), already agreed to be directed from a majority-owned HoldCo named SNAILGlobal to ensure maximisation of all local/international tax positions and back-end shared-services. This arrangement is supported by a guaranteed Euro-based take-off agreement.

Agricultural NAMSnails / SNAILAfrika

NAMSnails is a start-up Namibian facility employing patented European technology to be the largest producer of high-quality edible and cosmetic-grade snails on the African continent.

Mining: Gem of Diamonds (‘GEMD’)- Windsorton

The group’s website shows that at the end of 2021, it exceeded its targeted revenue of US$100 million.

The business of diamond mining remains extremely lucrative, despite difficulties posed by the pandemic, and is allowing for new opportunities. Kimberly is well-known for its diamond mining. One of the popular areas for diamond mining is the Windsorton area just outside of Kimberley.

The Windsorton area outside of Kimberley has always been closed off to anyone but property owners and mining-permit holders. This situation is now changing due to various proposed land-reforms in South Africa and has presented a rare 3+3-year opportunity for the (open-cast) mining of such resource-rich lands by new market entrants.

 

Executed as a majority-share joint venture investment with 3rd generation diamond prospectors, the objective is firstly a proof-of-concept (‘P.O.C’) to ensure a profitable local operation, whereafter aggressive expansion will be pursued into neighbouring countries. 

 

  • The group’s website shows that at the end of 2021, it exceeded its targeted revenue of US$100 million.
  • The programme identified 325 initiatives to create a step change in efficiency, productivity and cost management to ensure that GEMD remains a market leader.

 

Any/all international expansion will be directed from a majority-owned HoldCo named GEMGlobal to ensure maximisation of all local/international tax positions and back-end shared-services. It is fortuitous that the market price of diamonds has been positively impacted by the pandemic and that luxury brands continue to prosper, also globally.

The mining sector in Namibia continues to grow. A new venture has opened in Global Copper Smelters that encompasses a start-up 1-ton/hour copper-ore smelter. This smelter has recently been awarded the first Namibian production licence of its kind in decades for the processing of (raw) blister-copper

Initially executed as only an equipment finance transaction, the agreement has now expanded to include majority equity ownership and exclusive growth-financier status following the sale of all proof-of-concept (‘P.O.C’) production to buyers in the United Kingdom and China.

 

The price of copper has risen sharply as it is driven by demand for copper, particularly as it is the key-element of electric-car batteries used by the likes of Tesla and found in other electronic devices like mobile-phones. Copper’s price has risen from $3,000/ton to $10 000/ton in recent years, underpinning the group’s strategic expansion of the plant to (est.) 15-ton/hour.

Mining: Global Copper Smelters – Witvlei

Recently, expert geology and mining skills have been incorporated into the equity structure to ensure the required enterprise continuity and succession.