• Traditional Hotel Investment and Management models are under pressure

      A simple comparison between the Wyndham group (one of the world's largest global hospitality groups owning many hotel brands) and AirBnB demonstrates the challenges traditional hotels are facing and how a new and innovative way of thinking can achieve rapid growth and success

    • Technology enables property distribution to multiple booking platforms (incl. AirBnB) in seconds

      Invest in a property opportunity utilising AirBnB, Bookings.com and other online marketing platforms, while apartments are owned through a section 12J structure - providing the investor an upfront tax benefit of up to 45% of the total investment amount. In addition, up to 95% finance is available to qualifying investors via our unique SmartLoan solution.

      Furthermore, properties are operated under one central brand within the AirBnB and other online platforms, ensuring the client experience the same high quality look and feel and service no matter in which decentralised location they stay.

    • Investment SnapShot

      Marketing by AirBnB

      and other platforms

      Technology and online booking platforms such as AirBnB simplifies "marketing and sales" and lowers cost compared to traditional hotel models.

       

      One Brand, Multiples Locations

      Although properties may be located in various physical locations, the same "brand" will be linked and associated with each property, irrespective of location.

      Up to 95% Loan funding

      option available

      Section 12J is normally limited to investors having R1m surplus cash available. Now you can get a 100% Section 12J Tax break with only 5% equity required by qualifying investors.

      Settle all Debt in

      less than 5 years

      Our SmartLoan is structured to assist investors borrow up to 80% to invest and settle all debt within 5 years even while paying a monthly instalment similar to a 20 year mortgage bond.

      Risk vs Return Ratio:

      Excellent

      Targeted returns are similar to returns expected from higher risk investments, even while the investment is underpinned by the intrinsic value of various assets in different locations.

      Free

      Usage Benefits

      Investors are allocated 10 free nights for every R1m invested (loan and cash). In addition further discounts and other benefits also accrue to investors.

    • 100% Property | 100% Tax Break | 5% Equity Required

      Settle all debt in as less than 5 Years paying the same monthly instalment as a traditional 20 year mortgage bond

    • Investment underpinned by multiple Sectional Title units owned in various properties suitable for AirBnB and 12J hospitality hotels (Phase 1: Cape Town)

      Our Targeted Acquisition Criteria are presented below:

      7%

      Plus

      Minimum Targeted Net Annual Yields.

      65%-70%

      Plus

      Minimum Targeted Occupancy Rate.

      Distressed Sales

      In a "buyers" market we believe to be able to acquire units at 10%-20% below historical values.

      Existing units

      preference with a proven track record.

    • Phase 1: Cape Town

    • AirHotel will be managed in partnership with established AirBnB management companies and technology service providers

      with the long-term objective to develop and own the entire supply chain as critical mass is achieved

    • Our SmartLoan enables our Investors to settle the entire loan in less than 5 years*

      The Smartloan uses the section 12J tax benefits and returns from the investment as ongoing payments against the loan balance to settle all outstanding capital in less than 5 years. Targeted repayment periods may vary depending on the investors effective section 12J tax benefit as illustrated below:

       

      Another way of looking at the investment is that the SARS Section 12J benefit funds 45% of the SmartLoan

      The SmartLoan uses the investor's section 12J tax benefit as an additional balloon payments against the outstanding loan amount, effectively funding a substantial portion of the amount initially borrowed to invest:

      *Please note that the above illustrations are indicative and presented in a high-level format. In addition, investors should further note that returns are targets only and cannot be guaranteed. Investors are advised to seek external legal, tax and financial ad​vice before making a 12J investment. Returns are presented including a max. section 12J tax benefit of 45% and assumes a 4% CPI and 7% call account interest rate.

    • Investors benefit from capital growth in the asset from day 1 even while still "smartly" geared

      The Investor benefits from gearing as the SmartLoan settles debt at a quicker pace than a traditional mortgage bond, while the asset is targeted to continue to appreciate in value:

       

      Investors also start earning annuity hotel earnings via dividends once the debt is settled

      Once the debt is settled, all returns from the investment is allocated to the investor via dividends, while the investor effectively owns a debt free property asset via their section 12J VCC shares.

       

       

      *Please note that the above illustrations are indicative and presented in a high-level format. In addition, investors should further note that returns are targets only and cannot be guaranteed. Investors are advised to seek external legal, tax and financial ad​vice before making a 12J investment. Returns are presented including a max. section 12J tax benefit of 45% and assumes a 4% CPI and 7% call account interest rate.

    • Investment Risk is hedged and lowered by the SARS Section 12J Benefit

      Investment risk should be assessed independently with reference to a number of factors, including, but not limited to the quality of the asset and the team behind the asset, but as can be seen from the illustration below, investment risk is lowered by the upfront SARS Section 12J Benefit

       

      Investment Risk is further reduced by the intrinsic value of the property underpinning the investment

      In addition to Section 12J reducing investment risk, the investor's downside risk is further lowered by the fact that the investment is underpinned by a sound hospitality property asset.

      The combination of the the upfront Section 12J Benefit and asset underpinning the investment lowers investment risk

      *Please note that the above illustrations are indicative and presented in a high-level format. In addition, investors should further note that returns are targets only and cannot be guaranteed. Investors are advised to seek external legal, tax and financial ad​vice before making a 12J investment. Returns are presented including a max. section 12J tax benefit of 45% and assumes a 4% CPI and 7% call account interest rate.

    • The Fund Fact Sheet

      The AirHotel Fund Fact Sheet (SmartLoan) is presented below:

      Fund Name:

      AirHotel comprising multiple AirBnB and other apartments suitable for 12J (SmartLoan Option). Refer different Fact Sheet for cash investment option.

       

      Fund Mandate:
      Acquire (via qualifying companies) the AirHotel Sectional Title Rooms and earn annual hotel income from operations. Surplus cash will be managed and invested in money market or similar interest earning products. The Qualifying Companies shall adhere to the definition of “Hotelkeeper” as required by Section 12J of the Income Tax Act..

       

      Asset underpinning the Investment:
      AirHotel comprising multiple AirBnB and other apartments suitable for 12J.
       

      Hotel Management Company:

      Managed by Futureneers in partnership with various AirBnB management and technology companies such as:

      - Manage Air (www.manageair.co.za)

      - Propr (https://www.propr.co.za)

      - Wishbox (www.wishbox.co)

       

      It is the objective to develop and own the complete supply chain once critical mass has been achieved.

       

      Minimum Investment Amount:

      R1 million. Smaller investments may be considered and approved by the Board, provided that investment is by invitation only, only available to qualifying investors and not an offer to the Public to subscribe for shares.

       

      Investment horizon:

      Minimum 5 years | Investors may sell shares within 5 years, but such a sale will result in a recoupment of the Section 12J Tax benefit previously claimed. In addition, all sales will be regulated in terms of the waterfall approach prescribed by the Class 28 Subscription Agreement.

       

      Structured Loan:

      A Structured Loan is available to qualifying investors to fund up to 95% of their Subscription Prices for the specific class of Investor Shares. The main objective of the Structured Loan is to enable Investors to settle their Structured Loans as quickly as possible and within 5 years from the initial investment date, even while paying a monthly instalment similar to a traditional 20 year mortgage bond. Investors participating by way of the Structured Loan should therefore take note that they will contribute an additional balloon payment (which may be funded by way of the SARS Section 12J Benefit or otherwise) within 6 months and that all dividends and distributions from the investment will be used to pay off any outstanding debt (after Withholding taxes have been paid to SARS). A final balloon payment is only due should a shortfall and outstanding balance on the loan still be due before the end of the 5 year investment period. Details of the Structured Loan is presented in a separate Loan Agreement entered into between each Investor and the NCR Registered Finance Provider

      Estimated Annual Hotel Yields:

      Targeted annual hotel yields of 7% per annum.


      Estimated annual asset appreciation:
      Targeted annual asset appreciation at 7% per annum. We furthermore believe that we can buy property at below historical values, being a "buyer's market", which will enable the fund to achieve its targeted 7% avg. appreciation in asset value over 5 years.

       

      Additional Benefits to Investors:

      • 10 room nights flexible free usage per year (limited to availability).
      • Advanced bookings allowed (booking terms to be established).
      • Discount on bookings over and above free nights (booking terms to be established).
      Management Fees or Dividends:
      The Management Company will be remunerated by way of either a Management Fee or Management Dividends, details of which is recorded in the Class Subscription Agreement. The total cost to the investor is summarised below:
      • Upfront: 5% of Subscription Price (already included).
      • Annual: 1.5% of Subscription Price (adjusted every year for inflation using CPIX). First 5 years fees already included in Subscription Price.
      • Performance: 20% of Super Profits realised for Investors as defined in the PPM.
      Exit options after 5 years:
      At the end of 5 years, shareholders will have the following 3 exit options:
      • Options 1: Exit for cash (final cash dividend or buy-back of shares)
      • Option 2: Exit by way of a distribution in specie. This simply means that investors with a share value greater than the value of an individual unit, may be distributed a unit as a dividend in specie.
      • Option 3: Remain invested and retain shareholding similar to that of a “fractional ownership” structure, with the continued benefits of owning a share in a hotel, earning ongoing dividend income and having the additional other benefits previously described. 

      Investors should also note that the Directors endeavour to take all the necessary steps to enable investors to exercise any of the three options above, but that such exit options are not guaranteed. Investors should further take note than on exiting a 12J Structure, Capital Gains Tax or Dividends Tax may apply (as the case may be), while the base cost of their investment will be deemed to be zero for Capital Gains Tax purposes. The Directors endeavour to consult with Investor Shareholders closer to the time, and present the most appropriate and cost and tax efficient Exit options and to work close with the Investor Shareholders to execute such options.

       

      Should the investors choose option 3 above, no exit tax will apply, while fees will be reduced as per the PPM.

      Estimated Returns:

      Refer separate sections herein for a detailed analysis of targeted returns and targeted loan repayment period.

       

      Estimated Cashflows:

      Contact us to setup a meeting with one of our Executives to discuss targeted cashflows

    • Request PPM below (SmartLoan option)

    • Request information or request to invest

      Simply add your details below

      Submit

    *©2020 Futureneers™

    *Futureneers Capital is a registered Financial Services Provider (FSP 46996) and registered Section 12J venture Capital Company | Investments is by Invitation only | Minimum Investment: R1m | Funding of up to 80% available to qualifying investors limited to specific investment products and NCR terms and conditions | All calculations presented herein assumes a maximum section 12J Tax benefit of 45%, 7% interest on call rates and CPI of 4%.

     

    *RETURNS ARE TARGETS ONLY AND CANNOT BE GUARANTEED. INVESTORS ARE STRONGLY ADVISED TO OBTAIN EXTERNAL LEGAL, TAX AND FINANCIAL ADVISE AND REQUEST THE VARIOUS PPM'S AND LEGAL AGREEMENTS FOR FURTHER REVIEW AND DETAILED ANALYSIS BY THEIR ADVISORS. ALSO REFER T&C's BELOW.

     

    Terms & Conditions
    ×
    1. Please note that an investment in a Futureneers registered Venture Capital Company is by invitation only and not available as an offer to the public. Not all interested parties may be allowed to invest.
2. All benefits and savings referred to on this website relate to a potential income tax saving should the investors deduct their full investments for income tax purposes in accordance with section 12J of the Income Tax act - limited to up to 45% for individuals and trusts and up to 28% for companies (being their assumed effective tax rate saving - actuals may be different), and assuming the investment is made in qualifying entities and the Investor qualifies for the tax benefit.
3. Please obtain external financial and tax advice before investing in any section 12J Venture Capital Company.
4. Potential investors should take note that there are risks involved in buying or selling any financial product and that they are advised to consult a personal financial adviser and tax consultant before making any investment into Venture Capital Companies (VCCs). 
5. VCCs are regulated by the Financial Services Conduct Authority (FSCA) and are governed by the South African Revenue Service (SARS). 
6. Investments made into any VCC are equity in nature. Investors should therefore note that:
-	Past performance is not an indication of future performance; and
-	There are no guarantees in place when investing in VCC shares; and
-	The investor may loose a portion or even the full investment.
6. The content provided on this website does not constitute as solicitation, guidance, proposal, invitation or investment recommendation, and prior to selecting a financial product it is recommended that investors seek specialised financial, legal and tax advice.
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