Anuva Investments has launched a new fund, allowing for diversification from traditional 12J private equity into the property sector via a hospitality fund created in partnership with Cape-based property developer Flyt Property Investment.
Section 12J of the income Tax Act allows South African taxpayers (individuals, companies or trusts) to claim tax relief of up to 45% on their investment amount.
The Flyt and Anuva partnership, launched as the Flyt Hospitality Fund, will issue shares in selected qualifying property developments. Two Cape Town developments have been structured into the fund which issues shares giving the holder access to all the benefits of the property.
A minimum investment of R1m is required and can be made a a private investor, trust, stokvel, investment syndicate or company. The investment is locked for a period of five years without any disbursements, after which shareholders can opt to remain in the structure and depending on performance, benefit from a passive income via quarterly dividend payouts.
Speaking at the launch of the fund, Zane De Decker, managing director of Flyt Property Investment, said statistics from the Western Cape government indicates that for every R1m invested in 12J structures, 4.1 jobs have been created in South Africa.
"It's important for us to achieve returns in every sense. Not only do we want to achieve attractive financial yields, but it is also essential that we uplift local businesses, improve the built environment and facilitate positive progress in the areas we work in," says De Decker.
Neill Hobbs, CEO and founder of Anuva Investments, said the focus is on good quality, strategically located properties with a focus on sectional-title serviced apartments and student accommodation.