Zimbali Capital SA's new R2bn property fund
JOHANNESBURG - Luxury hospitality and development brand IFA Hotels & Resorts, the developers of the Zimbali Coastal Resort on KwaZulu-Natal’s North Coast, has partnered with boutique financial consulting firm Jaltech to establish a R2 billion property fund.
Called Zimbali Capital, it's a venture capital company that will allow IFA HoteHotels & Resorts and its associate partners to raise capital under Section 12J of the Income Tax Act for both their hospitality and student housing products.
Werner Burger, chief executive of IFA Hotels & Resorts South Africa, said the Zimbali brand has had exceptional success in the property sector and was now looking to raise capital for the first of Zimbali Lakes Resort's hospitality projects, called Boulevard PAD.
Burger said the fund for Boulevard PAD would close at R100 million.
He added that in addition to hospitality projects in Zimbali, Zimbali Capital would invest in Legend Hotel in Limpopo and De Zalze Lodge in Stellenbosch.
The Legend Hotel was part of the Legend Golf & Safari Resort, De Zalze Lodge was located against the first fairway of the De Zalze Golf Course and La Rez a secure student accommodation facility in Stellenbosch that offered bachelor, one-, two- and three-bedroom units for rental or purchase.
Burger said the attraction of investing into Zimbali Capital was that under Section 12J of the Income Tax Act the cost of an investment was effectively reduced.
He added that if, during the financial year ending February 28 next year, for example, a taxpayer in the highest tax bracket has had PAYE of R450 000 and invested R1 million into Zimbali Capital, the taxpayer may be entitled to receive a refund from the SA Revenue Service (Sars) of the full R450 000.