INVEST IN ZIMBALI CAPITAL Enjoy a tax refund of up to 45%* on your hospitality investment.
Zimbali Capital Ltd A Hospitality Asset backed Section 12J Venture Capital Company FSP 49374 | VCC-0124 | Reg no. 2018/028396/06
ZIMBALI CAPITAL BRINGS YOU A SHARIA COMPLIANT OPPORTUNITY TO INVEST IN REAL ESTATE-BACKED HOSPITALITY ASSETS AT ONE OF IFA HOTELS & RESORTS’ EXCLUSIVE DEVELOPMENTS AT A DISCOUNT OF UP TO 45%* THROUGH A SECTION 12J DEDUCTION: • Select and invest exclusively in a hospitality asset in Zimbali Lakes Resort from R 1 000 000. • Invest in a portfolio of hospitality assets selected to provide attractive expected returns to investors from R 100 000. • Investors’ returns are enhanced (based on their taxable income) by a tax credit of up to 45% on their investments into Zimbali Capital. *This depends on an investor's taxable income and tax bracket. Please consult your preferred financial adviser for more details.
INVESTMENT HIGHLIGHTS PROPERTY-BACKED Property-backed operating/ development hospitality exposure.
INVESTMENT STRATEGY Focused investment strategy taking advantage of IFA Hotels & Resorts’ extensive property portfolio.
PERFORMANCE DRIVEN Hospitality investment properties are managed by world class hotel operators. UPFRONT TAX DEDUCTION Receive an upfront tax credit of up to 45% on your investment amount. HIGH QUALITY PORTFOLIO Invest in a portfolio of high quality property-backed hotel companies. JOB CREATION Investing in Zimbali Capital ensures that you receive exposure to high-end real estate and at the same time, your investment will lead to job creation within the local community.
LOW RISK Exit / liquidity risk mitigated due to multi-use properties and ability to sell as a hotel operation or on a sectional title basis to the residential market. 15% - 17,5% IRR Projected IRR of 15 % - 17,5% p.a. (net of fees and taxes). EXPERIENCED MANAGEMENT Board and management team with extensive experience and success in principal investing, asset management and real estate.
STAKEHOLDERS Zimbali Resort Developments is the master developer of the exclusive Zimbali Coastal Resort and Zimbali Lakes Resort, spanning over 700 hectares. Located on the KwaZulu-Natal North Coast, these mega residential estates are a fusion of desirable lifestyle amenities, natural elements and modern estate design. Having set the precedent for luxury estate living nationally and internationally, Zimbali has garnered international acclaim and has proven itself to be a strong investment option offering longevity and desirability. Beachwood Capital is the fund manager, responsible for fund management which includes the vetting and selection of investment opportunities. Zimbali Resort Developments and Jaltech jointly control the fund manager.
IFA Hotels & Resorts will provide the pipeline of opportunities from which Zimbali Capital will select to invest in. Listed on the Kuwait Stock Exchange, IFA is a worldwide leader in the development of mixed-use hotel and residential resort projects and luxury leisure services. With a significant global footprint in premium city, resort and residential destinations, IFA and its partners have brought projects to market in United Arab Emirates, Lebanon, Portugal, United Kingdom, USA, France, Netherlands, Singapore, Thailand and South Africa. Jaltech is a boutique financial consulting firm focusing on forming, structuring and administering Section 12J VCCs. Jaltech is one of the market leaders within the industry and boasts the largest Section 12J professional team and a full support staff compliment focusing on providing exceptional service to its clients. Jaltech is the administrative manager and jointly controls Beachwood Capital.
FUND STRUCTURE OVERVIEW OF INVESTMENT OPTIONS LINKED
INDIVIDUAL
DIVERSIFIED/SHARIA
OR
COMPANY
TRUST
INDIVIDUAL
COMPANY
TRUST
SARS
SECTION 12J VCC
SECTION 12J VCC TAX DEDUCTION
INVEST FROM R 1 MILLION
INVEST FROM R 100 000
Investors investing into this LINKED opportunity will be given the exclusive chance to select a unit and purchase the selected unit at the end of the investment term. In addition, the investor will receive a share in the pooled hospitality income from multiple units, which is expected to be distributed to investors on exit.
Invest in a DIVERSIFIED/SHARIA portfolio of development, hospitality and student accommodation assets across South Africa and enjoy attractive returns. This investment will be ring fenced to a portfolio of properties, which is forecast to generate an IRR in excess of 17.5%.
INDICATIVE RETURNS ON A R1 MILLION INVESTMENT (assuming the individual is in the highest tax bracket and the asset/s are disposed of in year 5) R2,000
15% IRR AFTER FEES & TAX*
R1,557
R1,500
R0
-R500
-R1,000 -R1M
R450
NET INVESTMENT
TAX DEDUCTION
R500
INITIAL INVESTMENT
THOUSANDS
R1,354 R1,000
R0
R0
R0
YEAR 1
YEAR 2
YEAR 3
R0
YEAR 4
YEAR 5
-R247
LINKED
-R550
R2,000
CGT & STT
17,5% IRR AFTER FEES & TAX* R1,556
R1,000
R0
-R500
-R1,000 -R1M
INITIAL INVESTMENT
R500
R1,056 R450
NET INVESTMENT
TAX DEDUCTION
R1,500
THOUSANDS
TOTAL CASH BACK AFTER FEES & TAXES (INCL. TAX BENEFIT)
-R550
R60
R60
R60
R60
YEAR 1
YEAR 2
YEAR 3
YEAR 4
CGT & STT
YEAR 5
DIVERSIFIED/SHARIA
-R190
TOTAL CASH BACK AFTER FEES & TAXES (INCL. TAX BENEFIT)
*The tax deduction can be carried over where the investor is a company; where the investor is an individual or trust, the tax deduction (in most instances) is limited to the tax year of investment and can therefore not be carried over. Investors into a Venture Capital Company must be invested for a minimum of 5 years to avoid SARS recoupment of the tax deduction. To understand the rules of Section 12J please consult your preferred adviser. IRR considers all cash flows including hospitality income and capital appreciation at current tax rates.
INVESTMENT HIGHLIGHTS Treasury is incentivising South African taxpayers to invest in the local economy, via a tax deduction on the investment amount provided the investment is made into an approved Section 12J Venture Capital Company, like Zimbali Capital. The benefit to the investor for making the investment in Zimbali Capital, is a return on the investor’s full investment and a tax deduction on the amount invested.
DESCRIPTION INITIAL INVESTMENT TAX RELIEF (IN THE TAX YEAR OF INITIAL INVESTMENT) NET INVESTMENT (RISK CAPITAL)
INDIVIDUALS/TRUSTS
CORPORATES
R1 000 000
R1 000 000
(R450 000)*
(R280 000)
R550 000
R720 000
*If an investor (an individual in the highest tax bracket) invests R1 million in Zimbali Capital, the investor will receive a tax refund of up to R450 000 at the end of the tax year. What this means is that an investor will receive a return on 100% of their investment but only have exposure of 55% of their original investment amount.
JOHANNESBURG OFFICE: DURBAN OFFICE: CAPE TOWN OFFICE:
Unit 19, 1 Melrose Boulevard, Melrose Arch
011 327 6392
Zimbali Northgate Suites, Zimbali Coastal Resort
087 095 2742
2 Saffraan str, Boord, Stellenbosch
021 201 6513
zimbalicapital.co.za
enquiries@zimbalicapital.co.za
Disclaimer: The contents of this teaser document do not constitute and should not be construed as investment, tax, legal, accounting and/or other advice. For advice on these matters consult your preferred investment, tax, legal, accounting and/or other advisers about any information contained in this teaser document. Zimbali Capital Ltd (Reg. No. 2018/028396/06) is an authorised financial services provider – FSP number 49374 and a SARS approved Venture Capital Company – VCC-0124. Terms and Conditions: the investment will be equity in nature and the investor will acquire shares in Zimbali Capital Ltd which is the SARS approved Venture Capital Company which can provide the Section 12J tax benefit. For more detail about the structure please contact a representative of Zimbali Capital Ltd. All mentioned returns in this teaser document are estimates at current tax rates, and past performance is not an indication of future performance.