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The Investment Model
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The new concept
 
 
The structure
 
 
How does the cash flow work
 
   
     



     
  The concept  
 
 

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

 

 
     

 

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