Property Project Offerings

The arrangement for all projects is that IIM is the finance partner responsible for the financing, financial management, financial structuring and investor relations. The operating partners for projects are proven experts in the field with a strong established track record of success.

Property

Impact Investment Management have operating partners in the property sector, Four main categories of projects are:

a. Sectional Title Apartment Hotels

This will be delivered through a Section 12J structure and focused on the salaried retail investor.

b. Student Accommodation

These projects will be delivered through a Section 12J structure and focussed on the salaried retail investor.

c. Affordable Housing

IIM is focussed on contributing to the so-called gap housing market with the aim of building home ownership in this area of the housing market.

d. Commercial Community Centres

A retail development that seeks to deliver additional community benefits including enterprise development, empowerment and community upliftment.

Download Fact Sheets

Description Downloads
Student Accommodation Projections Download Fact Sheet
Student Classroom Download Fact Sheet

Student Accommodation Investment

Investment Mechanism

  1. This opportunity requires a minimum investment commitment of R1 million for the next tax year and a minimum tax refund of R250 000 for that tax year.
  2. On signature of the Commitment to Invest, there is a R10 000.00 Initiation/Administration fee payable. This is only refundable in the event that the investor does not qualify for the investment.
  3. The Terms and Conditions need to be fulfilled for the investment to be ratified into a formal contract.
  4. The Terms and Conditions include:
    • The investor must have at least R250 000.00 in income tax paid that can be recouped through the S12J mechanism for that tax year;
    • The investor must commit to invest their tax refund for that tax year;
    • The investor must comply with FICA and FAIS requirements;
    • The investor must be tax compliant and submit a tax clearance certificate;
    • The investor must submit their tax return to SARS within two weeks of the tax season opening;
    • The investor must pay their tax refund over to the Section 12J company within 1 week of it being received from SARS;
    • The investor must cede their S12J dividend income to the IIM Cash Management Fund should they wish to take advantage of the gearing offered;
    • The S12J share certificate must be pledged/ceded as collateral for the investment gearing;
  5. The project is then financed through a combination of bank loans and investor cash through the S12J qualifying company.
  6. Once the student accommodation is built (an estimated timeline of 1 year), the premises are then rented out to registered tertiary students.
  7. After a further 4 years, the S12J converts the accommodation units into a Real Estate Investment Trust (REIT) and the investor will hold units within that REIT;
  8. The REIT will be listed on an exchange if it qualifies;
  9. The units are delivered to the investor free of CGT and Transfer Duties.
  10. If there is any residual debt that is owed by the investor at the end of the period, the IIM CMF will continue to hold the income cession to service the debt. All indications at this point is that all debts are expected to be fully amortized by the end of the Section 12J investment period.

Apartment Hotel Investment

Investment Mechanism

  1. This opportunity requires a minimum investment commitment of R1 million per year for two consecutive tax years and a minimum tax refund of R350 000 per tax year.
  2. On signature of the Commitment to Invest, there is a R20 000.00 Initiation/Administration fee payable. This is only refundable in the event that the investor does not qualify for the investment.
  3. The specific apartment can then be chosen and reserved by the investor.
  4. The Terms and Conditions need to be fulfilled for the investment to be ratified into a formal contract.
  5. The Terms and Conditions include:
    • The investor must have at least R350 000.00 per tax year in income tax paid that can be recouped through the S12J mechanism;
    • The investor must commit to invest their tax refund for two consecutive tax years;
    • The investor must comply with FICA and FAIS requirements;
    • The investor must be tax compliant and submit a tax clearance certificate;
    • The investor must submit their tax return to SARS within two weeks of the tax season opening;
    • The investor must cede their S12J dividend income to the IIM Cash Management Fund should they wish to take advantage of the gearing offered;
    • The S12J share certificate must be pledged/ceded as collateral for the investment gearing;
  6. The project is then financed through a combination of bank loans and investor cash through the S12J qualifying company.
  7. Once the hotel complex is built (an estimated timeline of 2 years), the hotel operations then commence.
  8. After a further 4 years, the individual apartments are converted into sectional title units and registered in the name of the investor.
  9. The title deed is delivered to the investor free of CGT and Transfer Duties.
  10. The Sectional Title unit will be delivered to the investor with a minimal residual debt/bond. This will be the geared portion of the investment that has not been fully amortised.
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