Consortium Offshore
Investments are primarily a financial property investment
based on the buy-to-let property model. In our Dubai offering,
there is also a usage factor for shareholders like Fractional
Ownership in holiday homes. The main aim of the investment
is to achieve capital appreciation when the product gets
sold on the maturity date. In addition it is set to achieve
yearly profits from year three onwards that will be distributed
to all shareholders on a 6 monthly interval. The maturity
date of this investment is 5 years when the property
will be sold and the capital appreciation will be shared
between the shareholders of the Company.
DJ Offshore will
have a Dubai office that will manage all property portfolio’s
on behalf of our Shareholders. DJ Offshore is so committed
to our investment potential
and our product that we retain a 7.84% shareholding in all
Dubai Consortium Offshore Investments. This commits us to
the investment potential of this concept. More importantly,
we commit ourselves to our fellow shareholders by only realizing
our profits when you do i.e. when we sell the property in
5 years time.
Currently there is a high demand
from South African Investors to invest in the extraordinary
growth of Dubai and the UAE. This market has not been
exploited by South Africans due to the following 4 limitations.
DJ Offshore’s product will overcome these 4 limitations.
They are as follows:
1.)
High
Cost of Entry into the Property Market
If an individual
wants to invest into a well located property e.g.
Dubai Sports City or nearby, they need to pay ± AED
1 800 000 for a basic 1 bedroom, 1 bathroom apartment.
This equates to around R4.0 m in South African
Currency. This becomes a major commitment
to one investment and the thought of
investing becomes stagnant.
DJ Offshore overcomes
this short coming by promoting Consortium Investments
that make the product more affordable and accessible
to the investment market. Take the example of
R4.0 m property. Divide this amount by 12, equals
around R350k. This amount is more accessible to
a much broader market.
2.)
Where
do I buy... Location, Location, Location
There is no knowledge
about the property market in Dubai. Also, where to
buy and what to buy? The thought of investing become
stagnant due to the lack of South African
Company representation in Dubai.
DJ Offshore will
have a fully operational office in Dubai, who will
have sufficient knowledge of where to buy and what
to buy.
3.)
Who
to trust in Dubai with your investment
Who do you trust
to find tenants & look after your property?
Who handles your rental income and bank account?
The thought of investing becomes stagnant due to
the lack of trust.
DJ Offshore will
actively advertise the unit for rental through
our effective channels. The bank account will be
managed in conjunction with the UK Auditors and
the property will be managed through our secure
property management department in Dubai.
4.)
No
knowledge of the allowable R2m available for offshore
investment from South Africa
South African
citizens are generally aware of this allowance but
do not know how to go about preparing and submitting
the” Tax Clearance Application.” The
thought of investing becomes stagnant due to a lack
of experience and knowledge.
DJ Offshore has more than 3
Years experience in:
•
Tax clearance application and submission procedures with the South African Revenue Service
•
South African Reserve Bank approval to move funds offshore
•
Bank
procedures & documentation requirements
•
Audit requirements for this procedure
The structure
Consortium Investments is a legal
entity through which any number of investors become co-owners
(shareholders) of an investment property, or properties.
The property is held by a private company, which issues
shares to investors, who in return receive share certificates
to prove their investment.
More specifically the DJ Offshore
model allows you, the investor, the opportunity to invest
into a 1.92% shareholding of a BVI (British Virgin Isles)
registered Limited Company that owns 4 Dubai properties.
DJ Offshore will retain a 7.84 % shareholding in all Consortium
Offshore Investments.
How does the cash flow work
After the “Share
Subscription” and “Shareholders agreement” have
been signed by the investor, the payment of AED 173 625 must be paid to McMurray Aldum Incorporated’s
Trust account.
DJ Offshore in conjunction
with the investor will then apply for the “tax clearance
for offshore investment” with the South African
Reserve Bank. A Reserve Bank Clearance should also be
submitted. Once the applicable approvals have been obtained
from the various authorities, DJ Offshore will hand all
relevant documentation to McMurray Aldum Inc.
McMurray Aldum Inc, in
conjunction with Standard Bank, will then authorize the
payment of AED 173 625 to be released to the company’s
bank account at Barclays Dubai.
The funds in your Dubai
based Barclays Bank Account will be used to pay for the
stipulated
•
The outright property purchases
•
All once-off set-up costs
•
All 2-year upfront levies
•
6-monthly dividend distribution to Shareholders
•
Proceeds of the sale of the property to Shareholders
