ST FRANCIS LINKS HOTEL
BY MANTIS
Invest in arguably one of the best addresses in the Eastern Cape, while investment returns are boosted by an upfront Section 12J tax benefit of up to 45%*. Investors also receive annual free nights with "swop-out" rights at other elite Mantis properties.
Investment SnapShot
Low
Investment Risk
Investment risk is substantially lowered through the SARS Section 12J risk hedge of up to 45%*, while the investment in underpinned by a prestigious hospitality property asset.
Targeted Returns (IRR):
23% (Before Tax)*
The upfront section 12J tax benefit combined with annual hotel yields and targeted ongoing capital appreciation presents the investors with a targeted IRR above 20%.
Targeted Returns (IRR):
16% (After Tax)*
Even after all tax (including potential CGT at exit) have been paid, the investment presents investors with a targeted after tax IRR above 15%.
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 if a prestigious asset.
Prestigious
Address
Hotel situated within a prestigious area just outside St Francis Bay (being one of the Eastern Cape's most prestigious property addresses).
Free
Usage Benefits
Investors are allocated 10 free nights for every R1m invested. In addition further discounts and other benefits also accrue to investors.
"Swop-out" rights with other Mantis properties
Free nights can be used on a swop out basis with other Mantis properties incl. Pearl Valley Hotel and Simbithi Hotel & Suites.
"Tax Free", reduced fee
Year 5 Option
Option to remain part of the structure with reduced fees, same benefits and no exit tax while remaining part of the structure.
Plug and play hospitality management
Hotel managed via a hotel rental pool by internationally acclaimed Mantis group.
Asset Underpinning the Investment
St Francis Links Hotel by Mantis
Investment underpinned by the Sectional Title units owned in the St Francis Links Hotel by Mantis
Click here to download the Mantis Collection Brochure, or view the video and various pictures below
St Francis Links Hotel is managed by the internationally acclaimed Mantis property group
Hotel Management
Targeted Returns
St Francis Links Hotel by Mantis
Targeted Pre-Tax Returns
after all Fees have been deducted*
The IRR (the internal rate of return) is commonly used to express the targeted net cashflow returns over the investment period. It may also be viewed as the effective annual return on your investment comprising the various benefits, income and capital drivers illustrated below:
Targeted Returns After Tax
and after all Fees have been deducted*
Investors should note that should they sell their shares within 5 years, a 100% Section 12J recoupment will apply, and should they sell after 5 years, CGT will apply at a zero base cost. Even with this future CGT catch-up, the section 12J investment provides substantial benefits and targeted returns to investors as detailed below:
Exceptional Targeted Returns compared to Risk Profile*
Money in the bank" (call rates and bonds) is normally referred to as Risk Free Investments, while Venture Capital and Startup investments are seen as high-risk-high yielding assets.
* 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 advice 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.
Risk & Liquidity Analysis
St Francis Links Hotel by Mantis
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 advice 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 Fact Sheet
St Francis Links Hotel by Mantis
Private Placement Memorandum ("PPM")
St Francis Links Hotel by Mantis
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.