SIMBITHI HOTEL & SUITES

BY MANTIS (SMARTLOAN)

Fund Name:

Simbithi Hotel & Suites by Mantis (SmartLoan). Refer separate Fact Sheet for cash investments.

Fund Mandate:
Acquire (via qualifying companies) the Simbithi Hotel Sectional Title Rooms and earn annual hotel income from operations plus invest in Money Market Related Investments. The Qualifying Companies shall adhere to the definition of “Hotelkeeper” as required by Section 12J of the Income Tax Act.

Asset underpinning the Investment:
Simbithi Hotel & Suites by Mantis, Simbithi Eco Estate.

Asset Websites:

www.simbithi.com

www.simbithihotel.com

Hotel Management Company:

Mantis. It should also be noted that Mantis and Accor is in strategic global partnership in respect of sales & distribution channels aiming to increase long-term occupancy rates related to their respective hotel world-wide hotel properties, including Pearl Valley Hotel.

Hotel Management Company Website:

www.mantiscollection.com

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 80% of their Subscription Prices for the Class 27 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:

he Hotel Operator predicts annual hotel yields of 5%, 7% and 9% for the next three years of operations. However, Futureneers Capital has applied an average hotel yield of 5% in the calculation of the IRR presented herein. Also refer targeted periods anticipated to settle the SmartLoan as previously presented on this web-page.

Estimated annual asset appreciation:
Annual asset appreciation estimated at between 5%-7% per annum. However, Futureneers Capital has applied an average asset appreciation percentage of 5% in the calculation of the IRR presented herein.

Additional Benefits to Investors:

• 5 room nights flexible free usage per year according to your holiday needs for every R1m invested (10 nights for cash investments)
• Advanced bookings allowed
• Hotel switch and swop-out usage per year
• 50% discount for nights over and above the free room nights allowance
• Gift allowance for unused room nights per year
• Optional discounted golf membership and green fees during your stay, including associated recreational center access and clubhouse discounts
• Discount on all spa treatments
• 20% discount on published rates for all Mantis managed hotels in Sub-Saharan Africa.

• 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.

• 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. The exiting Investors should however take note that they must remain part of the hotel rental pool after exit.
• 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