Real Estate Investor May 2021 May 2021 | Page 56

BOUTIQUE ASSET-BACKED INVESTMENTS
Fixed Annual Returns On Capital
FSP 13370
ACTIVE INVESTMENT INFORMATION ENDULINI CONSTRUCTION FINANCE - PHASE 1
RISK PROFILE
LOW
INVESTMENT OBJECTIVE
The aim is to provide private investors alternative diversification with access to the financing of residential development projects . The result being fixed per annum returns based on pre-determined , projected time-frames with fixed capital assets employed to protect invested funds .
KEY INVESTMENT INFORMATION
Classification
LOW MEDIUM
Underlying investment project
Geographic Location
Investment Returns
MEDIUM
INVESTMENT TERM ( PROJECTED )
MEDIUM HIGH
HIGH
1YR 2YR 3YR 4YR 5YR
The length of the investment is an approximation – based on project timelines . Rollover / Reinvestment options at end of term
Percentage return per annum
Real Estate
Endulini development - Apartment Complex
Brackenfell , Cape Town , Western Cape
15 % - 18 % per annum ( dependent on level of investment AMT )
Min Investment R 100 000 Total investment requirement R 17 500 000
INVESTMENT FEESThe funds aim is
All returns quoted net of fees . Fees absorbed by Development Company
5 YEAR INVESTMENT PERFORMANCE ( AS P / A % RETURNS ) VS CPI
25
20
15
10
5
0 Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
CPI
Q3 2020
INVESTMENT SUMMARY
Investors are invited to provide funding for 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 already underway . Funding required for this phase of the project is R 17 500 000 , with the minimum investment amount limited to R 100 000 . Investments receive fixed returns calculated as follows :
Investment level R 100 000 - R 499 000 ( 15 % p / a ) Investment level R 500 000 upward ( 18 % p / a )
The returns vest and are paid out with the initial capital at the end of the investment cycle . Unique to our offering is a double-tier security structure , made up of a 1st covering bond over the development land and a linking of the investment to a specific unit / s in the development as security . The security and protection of investor funds is managed by the Noble Shield Security Trust . The investment period is projected to be for approximately 12 months .
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 exit the investment 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 area . The site of the development is beautifully located on the crest of a hill , with most units being afforded uninterrupted views . This development falls in an established area undergoing rapid expansion 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 1.5 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 .
Period