Fund Name:

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.

Asset Websites:

www.valdevie.co.za

www.pearlvalley.com

www.pearlvalleyhotel.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.

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.

Estimated Returns:

Refer separate section herein for a detailed analysis of targeted pre- and post tax returns to investors.

Estimated Cashflows: