51 Dominance Property Fund
51 Dominance Capital (PTY) LTD, Janneman Group (PTY) LTD, Capensis Investments (PTY) LTD and Berkeley Developments (PTY) LTD
51 Dominance Capital, Janneman Group (PTY) LTD, Capensis Investments (PTY) LTD and Berkeley Developments seeks to establish a property fund to realize the property developments that are currently in the pipeline. The organizations expect future benefits as an investment in the form of a positive return in the form of a capital gain and/or investment income, including dividends, interest, or rental income.
The parties envisage the establishment of a property fund in collaboration with other funding partners to engage in specific developments in South Africa, the Democratic Republic of Congo (DRC) and the United Kingdom (UK).
Property Investments
Overview of the company
Ayan Rosebank Residential Development
- Capensis and Berkeley Developments aims to embrace innovation in development and construction sectors harnessing international equity and debt financing and underpinned by an international advisory board providing cutting edge guidance on each project.
- Capensis Investments is a holding company for the property assets that Berkeley Developments engage in.
- Berkeley Developments South Africa was formed in 2000 with the objective to provide residential accommodation to the discerning homeowner, investor and tenant.
- Berkeley comprises a dynamic team of experienced individuals who have a passion for their work and the company; from the acquisition of the land to the handover of keys.
- Berkeley utilises the experience of appointed professionals to ensure a successful conclusion to projects.
- Over the years, we have succeeded in providing good quality, well located, value for money homes to our clients.
- We have successfully acquired, rezoned, planned, designed, financed, sold, land-serviced, constructed, snagged and transferred over 240 Full title and sectional title houses, semi-detached homes and apartments, which varied from up-market to exclusive units.
- In recent years, we have seen various changes in the property market and trends and continually stay abreast with the ever-changing conditions to offer our clients relevant and trendy homes. This demands a lot of foresight and research into the future trends since it may take up to three years from the first phases of planning, to handover.
Capital Requirement
Capensis Investments and Berkeley Developments require $110,000,000 to complete their current portfolio of development projects that they have on their books and we would like to partner with funding partners rather than banks to maximise the ROI through workable funding mechanisms which are more efficient for all parties.
Use of Funds
The company seeks to raise capital for the investment into several development projects that are to be acquired, designed, developed, and sold by the company that offers an average annual IRR of 18%. Berkeley Developments and Capensis Investments have projects of more than $100m, each meeting the social-environmental criteria of offering sustainable, viable, asset-backed, life-enhancing projects. Each project shall have its assets added to enhance the balance sheet of Berkeley Developments and Capensis Investments and the investment company, 51 Dominance Capital which in turn has its balance sheet managed and administered by Petra Asset Management supporting the security offered.
Project Draw Payments:
5 Projects require monthly payments, based on agreed completed performance milestones of 24 equal payments to be made over the period of 24 months, starting in April 2021 until March 2023.
Total funding payments will be 24 equal draws/tranches
at $4,583, 333.33 (Four million, five hundred and eighty-three thousand, Three hundred and thirty-three United States Dollars and thirty-three cents) per draw.
Project Summary
Projects to be developed in South Africa:
| Project | Units | Term | Values | Cumulative | |
| Lincoln Place – 134 Bryanston Drive | 46 Apartments | 18 Months – Funding required in March 2021 | $ 5 400 000 | $ 5 400 000 | |
| 2 | The Sandton Oasis Morningside Project
· |
Studio x 30
3 Bedroom x 200 Penthouses x 20 |
20 Months – Funding required in March 2021 | $ 51 800 000 | $ 57 200 000 |
| 3 | AYAN Sherlock Homes – 6 Rosebank Road (AYAN) | 19 x Exclusive Triplex & Simplex Townhouses | 20 Months – Funding required by March 2021 | $ 6 200 000 | $ 63 400 000 |
| 4 | Hampton Student Village Auckland Park | 434 Student Units | 18 Months | $ 12 500 000 | $ 75 900 000 |
| 5 | Cambridge, Oxford, Swindon & Windsor Lifestyle Estate – 393 Aureole Street Northriding | 453 Apartments | 20 Months | $ 34 100 000 | $ 110 000 000 |
| Portfolio Value | $110 000 000 | ||||
| Projects planned to extend to April 2023 based on funding being available in March 2021 | |||||
Risk and mitigation
- Developer engages in their own construction of properties so further costs are mitigated.
- Risk-averse structure:
- The land is only taken ownership of once:
- The Site Development Plan is Approved.
- The funds are secured for the project construction.
- Pre-sales are done to investors to cover most of the construction expenses.
- Market research is competitive and aligned to what market demands in the areas concerned.
- The land is only taken ownership of once:
- Drawdown schedule of funds only what is needed at the time and property gains more value in the process.