Number of Units available & expected date of completion
Existing or New Development?
Phase 2 of an existing development. Phase 1 already operational for the past three years.
Expected date to commence?
Development already commenced.
Expected Date to complete building (occupation):
June / July 2020.
Total number of units being developed:
40 Units (Phase 2).
Pearl Valley 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
Pearl Valley 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
Pearl Valley Hotel by Mantis
The Fund Fact Sheet
The Pearl Valley Hotel by Mantis Fund Fact Sheet (Cash Investments) is presented below:
Pearl Valley Hotel by Mantis (Cash Investment). Refer separate Fact Sheet for Loan Funding Investment option.
Fund Mandate: Acquire (via qualifying companies) the Pearl Valley Hotel 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 ActAdd paragraph text here.
Asset underpinning the Investment: Pearl Valley Hotel by Mantis, Val de Vie Estate, Paarl.
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.
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.
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.
Estimated Annual Hotel Yields:
The 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.
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:
10 room nights flexible free usage per year according to your holiday needs for every R1m invested
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.
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. 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.
Refer separate section herein for a detailed analysis of targeted pre- and post tax returns to investors.
Contact us to setup a meeting with one of our Executives to discuss targeted cashflows
Futureneers is s a collaboration of like-minded entrepreneurs, to invest, do deals, start and grow businesses and then give back to other entrepreneurs and those less fortunate - driven by profits, but never sacrificing ethics, while always having fun doing it!
*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.
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.