Real Estate Investor May 2021 May 2021 | Page 57

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
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 .
POTENTIAL RISKS
Market Risk
Developer Risk
Operational Risk
RISK AREAS
No Bank exposure
Project in high demand area of CT
Project in high demand price category
Developer cannot access funds without authority
Investor not linked to Devco via shareholding
Experienced team driving all aspects
Financial - specific funds allocation
Abundance of labour supply
RISK NEGATED
Cost increases factored in
COMPOSITION OF PROPERTY STOCK IN AREA
Investor Risk
Investment is asset-backed
As can be seen by chart
Investor liquidity - access to funds
– sectional title properties ( apartments ) are in short supply
Pre-determined returns for investor
Funds flow via Attorneys
GROWTH AND ACTIVITY
Estate Freehold Freehold Sectional Scheme
INVESTMENT SECURITY
A 2-tier structure is employed to protect investments 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 .
INVESTMENT CONSIDERATION
The unique structure of our investments has been meticulously crafted to offer high yields within a risk-managed investment environment . While our team of experts do a great deal to ensure the timely completion of projects , property development does have some unique risks that are out of our control . We therefore invite investors who understand ( i ) the nature of these investments , ( ii ) the security structures and ( iii ), where this investment fits into their larger profile to invest .
Disclaimer : This is a private placement and not a public offering . 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 client ’ s or prospective client ’ s investment portfolio . No client or prospective client 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 and taken every precaution to offer sufficient security for the Investment monies given by Investors .
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 .