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Investment overview
The Pearl Valley Hotel by Mantis is situated on the Jack Nicklaus Signature Pearl Valley Golf Course at the international award-winning Val de Vie Estate just outside of Paarl in the Cape Winelands. Arguably the best address voted number one Residential Estate in South Africa and recently voted Best Leisure Development in the world.
The investment case boasts guaranteed hotel gross yields for Year 1 and Year 2 acting as a Covid-19 hedge, further de-risking this already popular property backed 12J investment. Above average capital appreciation of the underlying property asset can be expected due to its location and affiliation with world class brands Val de Vie and Mantis.
Targeted returns – key value drivers
Targeted Internal Rate of Return ranges from 20% to 35% p.a. depending on the funding mechanism chosen by the investor.
Below a breakdown of the Key Value Drivers of a cash investment in this fund as an example.
Choose from a range of innovative funding options
From a 12J perspective the most notable differentiator of this fund is undoubtedly the selection of innovative funding mechanisms offered by Futureneers Capital – the Section 12J VCC and fund managers.
These include:
| FUNDING MECHANISM | HOW IT WORKS | PERFECT FOR | TARGETED IRR’S |
| Cash | 100% Cash up-front. | Investor with 100% cash available. | 20% Pre-Tax IRR |
| Smart Bridge Loan | 55% Cash up-front with 45% Bridge funding over 3 to 14 months (depending on Provisional or PAYE Tax Payer). | Investor with 55% available cash and expected to claim back 45% tax (via 12J investment) from SARS when filing next return. | 21% Pre-Tax IRR |
| Smart Instalment Loan | 5% Cash up-front & 95% funded over 5 years mirroring a 20 year mortgage bond – all debt is however settled in 4-5 years while paying the same monthly instalment (R9,500 p.m.) as a 20 year bond. | Investor with limited cash availability (5%) wishing to use the 12J share as security to “gear” the investment (like buying bonded property but with a massive tax “kicker”). | 35% Pre-Tax IRR |
| Global Hedged One | Offshore your capital via Investec (or use capital already offshore), invest in one of Sanlam Private Wealth’s USD instruments and use this investment as security for a local ZAR loan to fund your 12J investment. | Investor with available cash (local or offshore), but prefer offshore exposure together with a local loan funded 12J investment | >35% Pre-Tax IRR |
The lifestyle benefits for investors
Investors receive a variety of lifestyle benefits including:
- 6 to 25 p.a. free room nights (depending on funding option chosen). Not subject to peak time booking restrictions and free room night gift allowance.
- 50% discount off published rates once free room nights have been used
- 20% discount off published rates at all other Mantis managed hotels in Sub-Saharan Africa.
- Full golf membership while in residence (member green fees applicable)
- Use of golf cart during stay
Futureneers Capital – The Section 12J VCC & fund managers
Futureneers Capital has a successful partnership history with The Pearl Valley Hotel by Mantis, this being the 3rd tax season and capital raise round. Futureneers Capital is managed by a dynamic and entrepreneurial executive team supported by an impressive well experienced advisory board. The following key performance indicators speak to their exceptional capital raise and deployment history over a short 3 year period.
| R300m | Capital Under Management |
| R50m | 12J Project Pipeline |
| 120 | Section 12J Investors Successfully On-boarded |
| 23 | Underlying QC’s (Section 12J Qualifying Companies) |
| 4 | Funds Under Management by Futureneers |
| 198 | Section 12J Certificates Issued |
The Pearl Valley hotel by Mantis – the asset underpinning this Section 12J investment
The Pearl Valley Hotel by Mantis, offers guests unrivalled yet discreet security, a natural setting, bliss full quiet night’s sleep and space to breathe deeply. Suite views extend over greens and into fynbos gardens, with mountain view surrounds. The service offering is unparalleled to any world class hotel and concierge service.
A short walk away, The Pearl Valley Clubhouse overlooks the putting green of the Pearl Valley Jack Nicklaus Signature golf course – everything at your fingertips. A spa, coffee shops, a wine cellar, extensive pathways and mountain biking trails, are just some of the ways to turn an extended stay here into a wellness experience. Back’s Restaurant & Deli situated at the Pearl Valley Hotel offers breakfast, pool snacks, lunch and dinner, along with an assortment of items that are readily available to in-house guests.
The Pearl Valley Hotel by Mantis Phase 2 is now complete with an additional 40 one-bedroom suites, an upgraded communal area, a bigger pool, and a deli. In total, the hotel consists of 63 one-bedroom suites, 1 wheelchair friendly one-bedroom suite, and 7 two-bedroom suites, perfectly equipped for families and group bookings.
Mantis – the hotel operator
Mantis is a leading, conservation-focused, hotel group with luxury hotels, eco-lodges and waterways experiences located across the globe. Sustainable travellers have been enjoying eco-tourism, safaris and adventure travel with Mantis since 2000. Rooted in conservation, Mantis pursues sustainable business practices and develops tourism products that are respectful of the environment and communities in which they operate.
Acclaimed for its pioneering work in development, management, marketing, education and conservation, Mantis’s business model successfully combines responsible tourism, conservation and adventure, which translates to one-of-a-kind travel experiences.
Whether small and intimate or vast and complex, on a sweeping African plain, in a bustling city, or in the midst of a frozen snowscape, each is an exceptional place for guests to find themselves. While uniquely different in the experiences they offer, all are linked through a collective ambition to be extraordinary; to be rare in a world that mass-produces sameness.
- For more information on the Pearl Valley Hotel by Mantis opportunity click here.
