STRATEGY AND RETURNS

INVESTMENT STRATEGY

Capitalgro acquires commercial properties with quality, medium to long-term leases in good locations in the greater Cape Metro.

The primary focus is on the office and retail sectors, with an emphasis on multi-let properties in order to provide diversification of income. Non-recourse debt funding is secured in order to accelerate capital growth.

INVESTMENT RETURNS

Capitalgro targets an average pre-tax revenue return of 8% per annum over a five year term. This assumes an initial (first year) yield of 8% on acquisitions.

The company has set a leveraged capital growth target of 20-25% per annum averaged over a five year term.

INVESTMENT STRUCTURE

The capital structure of Capitalgro consists of a linked unit, comprising an ordinary share with an attributable linked shareholder loan, which results in the shareholder receiving an interest distribution. The linked unit is revalued in line with the company’s valuation policy, which requires external valuations for the entire portfolio over a three year period, ie, each property will be valued at least once over a three year period by an external independent valuer.

Print Friendly, PDF & Email