Investment

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• Full sectional title ownership
• Fully furnished to five-star deluxe international standard
• Bank-guaranteed 8% return on investment for initial two years
• World-Class facilities of spa, gym, rooftop pool deck and premium executive meeting boardrooms are core attractions and drive repeat hotel business
• Guaranteed minimum 10% interest on your deposit held in trust by attorneys
• Thereafter, income will comprise your proportional share of 25% of the gross hotel room revenue. (Refer to table below.)
• No levies payable
• 28 days’ free stay per year for owners (with minimal service charge)
• Hotel to be operated by leading international hotel operator, NH Hoteles
• Major capital appreciation potential
• Anticipated vibrant re-sale market

Tax Benefit

NH-Oscar Pearse is located in an Urban Development Zone (UDZ) area of Cape Town and, as such, qualifies for special tax benefit under section 13 quat UDZ Allowance of the South African Income Tax Act.

This allowance was originally introduced for buildings brought into use before March 2009, however, the Minister of Finance recommended in his February 2008 Budget Speech that the incentive for urban development zones be extended for another 5 years until March 2014.

This tax legislation allows the purchaser to reduce their taxable income by 30% of the purchase price of their unit over a period of 5 years. This allowance will be recouped into their taxable income upon sale of the unit. The incentive covers PAYE taxpayers who may use any taxable loss generated by the allowance to reduce their PAYE tax.

For further information, please consult SARS or your financial accountant.

Revenue and Returns

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Tourism growth into South Africa is one of the certainties in the current economic climate. With an increase of 28.5% over the last five years, South African Tourism has projected that 10 million tourists will visit South Africa in 2010 (a 10% increase on the current figure). The 2010 FIFA World Cup™ is second only to the Olympics in terms of global significance and is expected to drive an additional 500 000 tourists into the South African market. This is, in effect, a mega international tourist promotion for Cape Town and South Africa which will have a dramatic, positive effect on future international tourists arrivals into the country.

Cape Town is the jewel of South African Tourism and is a ‘must visit’ for all international inbound tourists. There continues to be a shortage of hotel rooms in Cape Town. This has resulted in ongoing significant growth in both hotel room rates and occupancies. A hotel-type property investment in Cape Town will benefit from the growth in inbound tourists. It is an ideal investment that allows for property appreciation with an assured growing income.

The anticipated increase in tourism and the unique property opportunities available, particularly in the Western Cape, will drive prices in the luxury end of the property market closer to international standards in the short- to medium-term.

Cape Town has been one of the most acclaimed tourist destinations in the world over the past five years. As tourism increases, the world will discover Cape Town to be one of the most unique locations. The World Travel Tourism Council has forecast that South African tourism will continue to grow significantly ahead of most other international tourism destinations.

From an overseas buyer’s perspective, South Africa is an English-speaking country within the European time zone. It has world-standard banking and legal systems and property title registration. There is free movement of overseas investment and profits out of the country - factors which will continue to attract overseas investment.