NEWS CONCERNING SHAREMAX ZAMBEZI RETAIL PARK
The Managing Director of Sharemax Investments, Mr Willem Botha, announced recently the development of Sharemax Zambezi Retail Park is progressing according to schedule and, as already expected from the beginning of this project, it appears to be a very popular centre.
Various national and other tenants have already signed lease agreements and the interest from financial advisors and members of the public in the project as an investment opportunity is very positive. Sharemax has started marketing prospectus number 7.
Offer
Sharemax was recently approached by a large pension fund and informed of their intention to make an offer to purchase Zambezi Retail Park. They have already finalised their intentions by means of a contract. This document is available at Sharemax’s offices for perusal.
The potential buyer wants to buy the centre at a cap rate of 7,5% as soon as it has been occupied by the tenants at the end of 2009 (around November). Although this offer will first have to be taken to the shareholders (investors) for approval during a special general meeting, we are of the opinion that it would not be declined easily. Sharemax has already discussed the opportunity with the developer who has informed us that he would be prepared to withdraw from the buyback option which he has on the centre.
The implications of this potential sale transaction are as follows:
- An investor who makes an investment today (November 2008), receives 12.0% income from interest for a year. The centre is sold to the new owner as soon as occupation takes place and the income drops to 10.0% per year.
- The centre was originally acquired by Sharemax for investors at a cap rate of 10.4% (that gives a projected purchase price of R 923 million) and is sold again at a cap rate of 7.5% (the projected sales price is then R 1 280 million). This means that investors will receive capital growth of 38.0%, should the investors decide to accept the offer to purchase. If the 12.0% income from interest is added, the investors actually receive a gross return of 50.0% in only one year!
- Because no initial costs are recovered from Sharemax’s investment products and there are also no costs for investors with the sale of a centre, the investors therefore receive the full 50% return, less a potential agent’s commission of between 3% and 4%.
Above average return
In the current unstable economic climate wherein the whole world currently finds itself, with investors who have already lost a large percentage of their investments, Sharemax still offers the best possible investment instrument for investors who would like to earn an above average return at a low risk.
This 50% gross return and an investor's money is only tied up for one year ... it wants to be done!
React before it’s too late
Mr Botha said that from the above information, Sharemax cannot guarantee anyone as to how long there will still be room for investment in this unique project. Therefore, make sure that your clients do not miss out on this excellent opportunity. After the sale of the centre, all investors will get the opportunity to immediately place their funds that they receive from Sharemax Zambezi Retail Park, into a similar new project from the Sharemax Income Plan.
This possible transaction is again a confirmation of the dynamic nature of Sharemax’s product range which offers the best possible advantages to investors.