Invest in Zimbali Capital
Zimbali Capital brings you an opportunity to invest in real estate-backed hospitality assets at one of IFA Hotels & Resorts’ exclusive developments at a discount of up to 45%* through a Section 12J credit:
- Select and invest exclusively in a hospitality asset in Zimbali Lakes Resort for as little as R1 million.
- Invest in a portfolio of hospitality assets selected to provide attractive expected returns to investors.
- Investors’ returns are enhanced (based on their taxable income) by a tax credit of up to 45% on their investments into Zimbali Capital.
Zimbali Capital is a joint venture between Zimbali and Jaltech Financial Services. The objective of this to create a R2 billion property fund within a Section 12J Venture Capital Company. Zimbali Capital will raise capital for strategic hospitality initiatives.
OVERVIEW OF STRUCTURE
SELECT A LINKED
Invest exclusively in a suite of your choice at Zimbali Boulevard, for as little as R1 million. Investment is ring-fenced to the capital appreciation on the unit and the investor receives hotel investment income from the pooling of suites.
INVEST IN A DIVERSIFIED
A diversified portfolio of development, hospitality and student accommodation assets across South Africa and enjoy attractive returns. This investment will be ring fenced to a portfolio of properties, which are forecast to be in excess of 18% IRR after tax.
Property-backed operating hospitality exposure.
Hospitality investment properties are managed by world class hotel operators.
UPFRONT TAX CREDIT
Receive an upfront tax credit of up to 45% on your investment amount.
HIGH QUALITY PORTFOLIO
Invest in a portfolio of high quality property-backed hotel companies.
15% – 18% RETURNS
Projected investor return of 15 % – 18% p.a. (net of fees and taxes).
JOB CREATION THROUGH INVESTMENT
Investing in Zimbali Capital ensures that you receive exposure to high-end real-estate and at the same time, your investment will lead to job creation within the local community.
FOCUSED INVESTMENT STRATEGY
Focused investment strategy taking advantage of IFA Hotels & Resorts’ extensive property portfolio.
Board and management team with extensive experience and success in principal investing, asset management and real-estate.
Exit / liquidity risk mitigated due to multi-use properties and ability to sell as a hotel operation or on a sectional title basis to the residential market.
ABOUT SECTION 12J
Treasury is incentivising South African taxpayers to invest in the local economy, via a tax deduction on the investment amount provided the investment is made into an approved Section 12J Venture Capital Company, like Zimbali Capital. The benefit to the investor for making the investment in Zimbali Capital, is a return on the investor’s full investment and a tax deduction on the amount invested.
*If an investor (an individual in the highest tax bracket) invests R1 million in Zimbali Capital, the investor 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.