Real Estate Investor March 2022 | Page 72

BOUTIQUE ASSET-BACKED INVESTMENTS
Fixed Annual Returns On Capital
FSP 13370
ACTIVE INVESTMENT INFORMATION ENDULINI CONSTRUCTION INVESTMENT – CYCLE 3
INVESTMENT OBJECTIVE INVESTMENT SUMMARY
The aim is to provide private investors alternative diversification with access to investing in residential development projects . The result being fixed per annum returns based on pre-determined , projected timeframes with fixed capital assets employed to protect invested funds .
KEY INVESTMENT INFORMATION
Classification
Real Estate Endulini development -
Underlying investment project
Apartment Complex Brackenfell , Cape Town ,
Geographic Location
Western Cape 14 % - 18 % per annum
Investment Returns
( dependent on level of investment AMT ) Min Investment R 100 000 Total investment requirement R 5 000 000
INVESTMENT FEESThe funds aim is
All returns quoted net of fees . Fees absorbed by Development Company
Capital Investors are invited to participate in investing in Endulini , a residential development in the suburb of Brackenfell in Cape Town .
The Developer , Quinate Consulting ( Pty ) Ltd , has begun development of the project comprising 61 sectional title apartments within a secure gated environment . The installation of services and infrastructure is complete . Construction of the units in Cycle 1 is completed and due for transfer in March . 24 Units in Cycle 1 have already been sold . Construction on Cycle 2 is underway . Investment is required for construction of units on the development which will be carried out block by block on a phased basis .
To develop this stage of the project , the total investment required is R 5 000 000 , with a minimum investment amount limited to R 100 000 . Investments receive fixed returns calculated as follows :
Investment level R 100 000 - R 499 000 ► 14 % p / a Investment level R 500 000 - R 999 000 ► 16 % p / a Investment level R 1 000 000 plus ► 18 % p / a
The returns are paid out with the initial capital at the end of the investment cycle . Unique to the structure , the development assets are held as security for the protection of the investor capital . Details of this unique protective structure can be elaborated upon in discussion . The protection of investor funds is managed by the Noble Shield 1 Security Trust . The investment period is projected to be for approximately 12 months .
Percentage return per annum
5 YEAR INVESTMENT PERFORMANCE ( AS P / A % RETURNS ) VS CPI
25
20
15
10
5
0 Q3 2015
Q4 2015
Q1 2016
Q2 2016
RISK PROFILE
LOW
Q3 2016
Q4 2016
Q1 2017
LOW MEDIUM
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Period
MEDIUM
Q2 2018
INVESTMENT TERM ( PROJECTED )
Q3 2018
Q4 2018
Q1 2019
Q2 2019
MEDIUM HIGH
Q3 2019
Q4 2019
Q1 2020
Q2 2020
HIGH
CPI
Q3 2020
Individual investors exit when the completed unit linked to their investment as security is transferred to the end-buyer of the property , at which stage the Attorneys will repay the investor capital plus accrued interest . At this time investors may exercise their option to either have the funds repaid to them or to roll their investment funds over into subsequent investment cycles to prolong the investment .
THE ENDULINI DEVELOPMENT
Endulini will be a secure access-controlled complex . The homes are all 2-bedroom properties with a choice of 1 or 2 bathrooms . All units will include a patio or balcony with a braai . The site of the development is beautifully located on the crest of a hill , with most units being afforded uninterrupted views . Brackenfell , the suburb within which this development falls , is an established Afrikaans area in the Northern Suburbs that is rapidly expanding on its outskirts to cater for the huge demand of the middle-income community . The demand for 2-bedroom units in established , safe areas such as this is very high .
The properties are aimed at the predominant middle-income sector with apartments falling within the R 1.25 - R 1.6 Million range . This broadly ensures the properties will be in the pricing category which is among the most popular and highly absorbable in the greater Cape Town area .
1YR 2YR 3YR 4YR 5YR
The length of the investment is an approximation – based on project timelines . Rollover / Reinvestment options at end of term