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The Boulevard: The Tax-Savvy Way To Buy Into Zimbali Lakes Resort

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Investing is risky, so savvy investors need to stick to investment opportunities that offer the potential of fantastic returns, and are both credible and scalable. This means investing in real businesses, with real products and value, not simply chasing tax breaks and certainly not following the hype.

Enter Zimbali Capital, an opportunity to invest in hospitality assets at one of IFA Hotels & Resorts’ (IFA H&R) exclusive developments, including the massive new multi-billion-rand Zimbali Lakes Resort development on KZN’s north coast – with a nifty 45% tax break through a Section 12J credit.

 

WHAT IS A SECTION 12J DEDUCTION?

The Section 12J legislation was introduced to encourage local direct investment in early-stage businesses. It allows investors (any taxpayer) to claim income tax credit in respect of the expenditure incurred in exchange for qualifying Venture Capital Company (VCC) shares.

The premise is that SARS foregoes otherwise payable income tax now, in return for future income tax payments from the investee company, capital gains from the VCC on exit, and dividends tax or capital gains tax from the investor when funds are paid out.

THE ZIMBALI CAPITAL OPTIONS

Some Section 12J VCC entities offer low-quality investments, but the allure of Zimbali Capital’s offering is undeniable. There are two options on offer.

One option is to invest exclusively in a suite of your choice at Boulevard PAD (executive-style, lock-up-and-go studio apartments within Zimbali Lakes Resort) for as little as R1 million. The investment is ring-fenced to the capital appreciation on the unit, and the investor receives hotel investment income from the pooling of suites.

 

Or you could invest in a portfolio of development, hospitality and student accommodation assets across South Africa. This investment will be ring-fenced to a portfolio of properties that are forecast to be in excess of 18% IRR (internal rate of return) after tax.

 

‘If someone invests R1 million in Zimbali Capital, they will receive a tax credit of up to R450,000 at the end of the tax year. What this means is that an investor will receive a return on 100% of their investment but only have exposure of 55% of their original investment amount,’ explains Zimbali marketing manager Erik Steele.

Boulevard PAD is expected to have a strong rental market pull, according to IFA H&R, offering residents the prestige of a Zimbali address, and access to the world-class amenities on offer within this secure gated estate.

‘Our market research has shown there is a huge demand for a product like Zimbali Lakes, and investors are looking to pour their capital into a product that will be successful,’ says Adriaan van Schoor, assistant vice president of sales, IFA H&R.

 

ZIMBALI LAKES RESORT

Zimbali Lakes Resort consists of five main nodes that, between them, will provide multi-generational, mixed-use offerings to suit the specific needs of a broad range of investors, catering for both commercial and residential needs, including a R3 billion, 750-unit retirement lifestyle village, and an 18-hole golf course.

Rounding off the resort’s estate living, The Zimbali Sports Club offers a range of facilities for everything from a hard-core gym workout to tennis, archery, rugby, cricket, bowls and mountain biking.

 

EVERGREEN VILLAGE ZIMBALI LAKES

Evergreen Village Zimbali Lakes is a R3 billion life rightbased retirement resort managed by Evergreen Lifestyle. In addition to 750 stylish retirement homes in beautiful surroundings, Evergreen Village Zimbali Lakes will have dedicated on-site healthcare facilities, assisted living units, and all the usual social and sports facilities that are standard in top-of-the-range retirement facilities.

 

THE BOULEVARD

The Boulevard is a high-density mixed-use urban hub that – while being part of the estate – is open to the general public. The Boulevard will host a retail piazza, state-of the-art medical suites, office spaces, serviced suites at Boulevard PAD, sectional title units at Boulevard Suites and an internationally branded hotel.

 

ZIMBALI BEACH CLUB

Zimbali Beach Club is, as the name suggests, right on the beach. Here residents and visitors can have a meal, a cocktail or just a quick cup of coffee overlooking the ocean. Storage facilities for ocean toys make it easy for residents from anywhere in Zimbali Lakes to zip down to the beach on a golf cart, and head off for a paddle, SUP, sail or surf.

 

ZIMBALI SPORTS CLUB AND ACADEMY

Zimbali Sports Club and Academy caters for both casual keep-fit hackers and competitive athletes, and the on-site training academy serves as a platform for fostering sporting talent in a host of disciplines. Residents can enjoy the use of the gym, or let their kids lead active lives at the Kids’ Club located at Zimbali Sports Club. Facilities include squash courts and tennis courts, a rugby field, soccer pitch, neat bowling green and even an archery arena.

The clubhouse includes some unusual workstations and meeting pods, so residents can seamlessly segue from work to play to family and back again.

 

OCEAN CLUB ZIMBALI LAKES

Ocean Club Zimbali Lakes overlooks the Zimbali Lakes Sports and Leisure Club, and its elevated position offers home owners extensive ocean views. Easy access to the Zimbali Sports Club, Zimbali Boulevard and the Beach Club makes Ocean Club an ideal location for a family home.

 

THE WATER CLUB

To enrich its understanding of the markets in which IFA Hotels & Resorts KPSC operates, it enters into strategic alliances and joint venture partnerships with leading local companies. With a significant global footprint in premium city, resort and residential destinations, IFA and its partners have brought projects to market in United Arab Emirates, Lebanon, Portugal, United Kingdom, USA, France, Netherlands, Singapore, Thailand and South Africa.

 

The Water Club is situated on the edge of the eponymous Zimbali Lakes, so residents can paddle, sail or SUP all day, every day if they like, and The Water Club retail piazza offers every retail therapy option imaginable, as well as business, office and meeting facilities, along with a selection of water sports.

ABOUT IFA H&R

IFA is a subsidiary of IFA Hotels & Resorts KPSC, which is listed on the Kuwait stock exchange. IFA Hotels & Resorts KPSC is a worldwide leader in the development of mixed-use hotel and residential resort projects as well as luxury leisure services.

To enrich its understanding of the markets in which IFA Hotels & Resorts KPSC operates, it enters into strategic alliances and joint venture partnerships with leading local companies. With a significant global footprint in premium city, resort and residential destinations, IFA and its partners have brought projects to market in United Arab Emirates, Lebanon, Portugal, United Kingdom, USA, France, Netherlands, Singapore, Thailand and South Africa.

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2 Comments
  • Danny Ramsuchit
    Posted at 18:23h, 10 Jan Reply

    Good day, please can you forward more information on the section 12J investment opportunities

  • Moipone Masalesa
    Posted at 15:33h, 01 Feb Reply

    Tell me more about Estate living in Zimbali

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