Real Estate Investor April 2022 | Page 67

MARKET ANALYSIS RISK ANALYSIS
The site of the development is very well located . Brackenfell is a popular and safe residential area in the Northern Suburbs of Cape Town . The development is surrounded by houses and townhouses in what is an established , traditional area . In addition , the development is in proximity to the Cape Gate regional shopping centre , the Cape Gate Medi-Clinic private hospital , Kuils River Golf Course , Curro School and large flagship amenities such as Checkers Hyper and Pick n Pay Hypermarket
POTENTIAL RISKS
Market Risk
Developer Risk
RISK AREAS
Project in high demand area of CT
Project in high demand price category
Developer cannot access funds without independent authorisation
Investor not linked to Devco via shareholding
RISK NEGATED
This is an exceptionally desirable residential area and the demand for 2-bedroom units is high , catering to a broad market of owneroccupiers , investors and renters . This remains one of the best performing middle-income residential areas in SA for sales and rentals alike .
Operational Risk
Investor Risk
Experienced team driving all aspects
Financial - specific funds allocation
Abundance of labour supply
Cost increases factored in
Investment is asset-backed
COMPOSITION Chart OF PROPERTY Title STOCK IN AREA
Investor liquidity - access to funds
Pre-determined returns for investor
1393
155
As can be seen by chart – sectional title properties ( apartments ) are in short supply Estate Freehold
Freehold Sectional
Estate title
Freehold Freehold Sectional Scheme
Funds flow via Attorneys
INVESTMENT SECURITY
A 2-tier structure is employed to protect invested funds , which includes 1st Covering bond over the development to protect investors . Investments are backed by fixed assets within the underlying investment project . Until investors are repaid the assets are their security . This is elaborated upon with more detailed documentation and in discussion .
654
GROWTH AND ACTIVITY
Total Property Value ( R ' 000 )
250 000
200 000
150 000
INVESTMENT CONSIDERATION
The unique structure of the investments has been crafted to offer attractive returns within a risk-managed investment environment . While the team of experts do a great deal to ensure the timely completion of projects , property development does have some unique risks : Therefore the invitation is to investors who understand ( i ) the nature of these investments , ( ii ) the security structures and ( iii ), where this investment fits into their larger profile .
100 000
50 000
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Sectional Scheme Erf
Investment Disclaimer : This is a private placement . Different types of investments involve varying degrees of risk , and there can be no assurance that any specific investment will either be suitable or profitable for a Lender or prospective Lender ’ s investment portfolio . No investors or prospective investors should assume that any information presented and / or made available by Opportunity Private Capital or its Associates is a substitute for personalized individual advice from an advisor or any other investment professional . No guarantees as to the success of the investment or the projected return are offered . They have undertaken to present as much factual information as is available . Every precaution has been taken to offer sufficient security for the investment monies given by investors . Neither Opportunity Private Capital , nor the Borrower has been registered as a regulated collective investment scheme pursuant to the Collective Investment Schemes Control Act 45 of 2002 (“ CISCA ”) and neither Opportunity Private Capital , nor the Borrower , nor NSST , nor the Attorneys is licensed under CISCA .
Opportunity Private Capital is a juristic representative of Rockfin Wealth Management ( Pty ) Ltd FSP13370 . Note that this investment product presented by Opportunity Private Capital is not a financial product that falls within the scope of any category or sub-category regulated by the FSCA . The information contained in this document does not constitute a financial service as defined in the Financial Advisory and Intermediary Services Act nor is it intended to solicit investment or promote a financial product in any way . Opportunity Private Capital do not provide investment , tax , legal or accounting advice . This material has been prepared for informational purposes only . You should consult your own investment , tax , legal and accounting advisors before engaging in any transaction .
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