WHY invest – Pepperclub Invest

WHY INVEST IN A SECTION 12J FUND?

S12J funds represent a highly attractive investment vehicle and a unique tax-saving opportunity. The S12J tax deduction allows an investor to deduct 100% of their investment from their taxable income in the current year of assessment.

Investors in the 45% income tax-bracket, will enjoy a tax saving which equates to 45% of their investment – SARS effectively pays for 45% of your investment.

You have one last opportunity to invest before Section 12J ends on June 30th 2021 (which remains fully tax-deductible for your tax year ending on 28 February 2022).

Become a shareholder into this growing Cape Town hospitality real estate portfolio.
VCC intends diversifying into further Cape Town hospitality opportunities and ultimately listing on JSE AltX
Only 5% deposit
100% tax deductible
Pre-approved financing
Guaranteed minimum operating yield of 7.3% per annum average over 5 years - not affected by COVID
Projected IRR 18.7%
Investors receive a minimum of 6 free room nights pa
5-star hotel asset underpin
In the heart of Cape Town
Guaranteed buy-back
Already nearly R200m raised by the VCC
Low-risk real estate based investment
100% Investment Allocation (No Capital Raising Fee)

BEST

Luxury

CITY HOTEL IN AFRICA
FOR 7 YEARS RUNNING

WHY INVEST IN HOSPITALITY NOW?

Tourism is still one of the biggest economic drivers in South Africa and Cape Town remains the premium destination for domestic and international tourists.

The world is now on the recovery path from the pandemic and the tourism industry is expected to go through a great boom.

As a Pepperclub investor, you’ll be perfectly placed to take advantage of this boom.

Hospitality is a primary driver of the local economy
If we take a longer term view, hospitality will also be incredibly robust in bouncing back from this crisis
Cape Town is the most sought after travel destination on the continent
Boom expected in domestic travel
Return of international travel

WHY THE PEPPERCLUB HOTEL?

The Pepperclub Hotel is the crown jewel of Cape Town’s 5-star hotels.

Renowned for its luxury and service, the establishment is managed by SBG Hospitality, a subsidiary of Solomon Brothers Group. Pepperclub Hotel has won numerous awards, including being named the best Luxury City Hotel in Africa for 7 years running.

It enjoys the loyal support of it’s guests, who return year after year, ensuring an average yearly occupancy of over 60%.

Located in the heart of Cape Town
Historically consistent 60%+ average occupancy
10 year profitable operating history, with loyal customer base
Experienced in-place Hotel Management
SBG Hospitality is the management company operating Pepperclub Hotel
Voted Best City hotel in Africa for 7 years in a row
The hotel reopened post-lockdown on 22nd June 2020
The hotel has implemented best practice hygiene & safety

100% tax deductible
Fasted growing alternative assets class in South Africa
Section 12J requires investors to take a 5 year outlook (any investment exited before 5 years is liable for a recoupment of the tax benefit)
Hospitality has notably been a strong performer due to its significant job creation (a key criteria for Treasury), and in having a strong asset underpin, and strong cash flows
The fund is administered by Grovest - the pioneers of Section 12J - and the largest administrator of Section 12J VCCs

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Invest before 30 June 2021

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Invest before 30 June 2021

DOWNLOAD INVESTOR PACK

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contact a fund manager

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Register

Registerfor our webinar

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for our webinar