Your Property Partner creating wealth for generations

Transcription

vdmv
P R O P E R T Y PA R T N E R S
A Property Consortium presented by the
Van Der Merwe Venter Property Group
Your Property Partner
creating wealth for generations
vdmv
Introduction
VDMV and our investors own various Industrial and Commercial Buildings. These
properties are being paid for by our tenants.
The rental income increases by 7% to 9% annually. Income surpluses are applied
to redeem loans to banks and investors.
The capital value of these buildings grow as the rental income increases.
The result is capital appreciation with a passive income that exceeds
inflation.
We currently let 68,000m² and our expected rental income for the 2009/10 year is
R34 million.
We established six successful consortiums with an asset value of R150 million,
consisting of 105 investors.
With the completion of this consortium, the asset value will increase to
R250 million.
We are being offered good opportunities, and banks are willing to finance us.
We are offering you an opportunity
to participate in our property consortium.
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The FIFTEEN 4 TEN property consortium works as follows:
+ The promoter obtains a bond from a Financial Institution, usually 60% of the purchase price by providing
the required guarantees and sureties. Only the promoter signs surety.
+ The balance of the purchase price is obtained from investors.
+ Investor loans to the company is recorded as a loan account. For this loan, shares are allocated to the
investor. This loan is repaid with interest. Once the loan is repaid, the investor retains his shareholding.
+ Shareholding will be allocated to an investor in relation to the contribution of the total cost.
+ When the existing buildings have increased in value, we will cede this increase as surety to a bank in order
for us to buy another building, without investors having to make any further contribution.
+ Four product options are available, each paying different interest incomes (7%, 8%, 9% or 12.5%), each
with it's own share allocation.
+ A portion of the investor's funds are invested with a financial institution, (currently Allan Gray) as an
emergency fund. These funds can be used to repay investor loans after the bonds have been repaid.
+ After repayment of the bonds and investor loans, the investor will receive dividends and capital growth from
the building's appreciation and rental income.
+ Once the investor's loan is repaid, the income is effectively on a NIL investment.
A list of existing investors is available from the promoter.
Commercial and industrial property is the best inflation
linked passive income generator to create long term wealth.
The next few pages will give you, the Investor, the necessary information to make an informed decision to
become our investment partner. Kindly contact your financial advisor with any queries or concerns. E-mail us
on invest@vdmv.co.za should you wish to be contacted personally.
Kind regards,
Izak van der Merwe
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FIFTEEN 4 TEN
Consortium Proposal
This is an offer for the subscription of shares in VDMV 12 (Pty) Ltd. The investor receives shareholding, and
the investment reflects as a shareholder loan. The Company's goal is to raise R50 million through investor
loans and to obtain commercial mortgage bonds for the balance of approximately R 50 million.
The authorized and issued share capital of the Company will be 100 000 (one hundred thousand) shares at a
par value of R0,01 (one cent) each. For a minimum investment of R100 000, an investor receives 100 shares.
Therefore a minimum investment of R100 000 will have a par value of R1,00 (one rand). These shares
represent a loan of R100 000 in favour of the investor. The loan earns interest depending on the selected
option exercised in terms of this offer.
The Promoter, VDMV Property Partners, will establish an Emergency Fund of approximately R3.3 million with
a financial institution of choice, currently the Allan Gray Global Mandate Fund.
The proceeds of loans and the bond shall be utilized as follows:
The Grindrod Building
Isando Industrial Building
Marketing & Set-up Costs
Allan Gray Global Mandate (Emergency) Fund
Transfer Fees (Estimated)
Bank Mortgage Bond Fee
R 37 337 500
R 47 600 000
R 8 493 750
R 3 300 000
R
223 750
R 3 045 000
___________
R100 000 000
Key Features of the Investment:
Product name
Fifteen 4 Ten
Capital to be raised
R 100 000 000 (One hundred million rand)
Assets to be acquired
Grindrod Building in Bellville
Industrial Building in Isando
Minimum investment
R 100 000 (One Hundred Thousand Rand)
Investment vehicle
Private Company: Van der Merwe Venter 12 (Pty) Ltd,
Registration number 2004/030694/07
Investment objective
Primary objective: High level of Capital Growth.
Secondary objective: Maximum Income.
Return on investments
Investors will receive interest on the investment as agreed, and
dividends after all loans are repaid.
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Disclosures
VDMV Property Partners is acting as the Promoter of this investment and is committed to provide quality
investment opportunities to investors. In accordance with a policy of transparency, this disclosure document
provides to the prospective investor all the detailed material information necessary to make an informed
investment decision. It has been compiled in terms of the disclosure requirements as prescribed by Notice
459, published by the Department of Trade and Industry in Government Gazette No. 28690 of 30 March 2006.
The Promoter and Investment Managers
VDMV Property Partners
The Van Der Merwe Venter Property Group was founded by Izak Van der Merwe in late 2003. At this time, Izak
saw the long-term potential of commercial and industrial property as a supplementary retirement and passive
income generator. Realizing this potential, Izak, approached family, friends and professional acquaintances to
participate in his property consortiums. Currently the consortiums have over 100 investors and a portfolio
valued in excess of R150 million.
VDMV Property Partners was formed to make the benefits of commercial and industrial property ownership
available to the general investment public. The Van Der Merwe Venter Property Group is proud of its track
record and as core values believes in transparency, honesty and integrity in all its business dealings with
investors, banks and property brokers.
Promoter's Particulars
VDMV Property Partners
VDMV Property Partners (Pty) Ltd
Registration number: 2008/00510/07
Western Cape Head Office
1 De Dam Street, Vierlanden, Durbanville
PO Box 865, Durbanville, 7551
Tel number: (021) 975 9696
Fax number: (021) 975 1158
e-mail: invest@vdvm.co.za
www.vdmv.co.za
An Authorised Financial Services Provider
VDMV Property Partners is registered under LOXFIN at the Financial Services Board as an authorised
Financial Services Provider (FSP) under License Number: 31157
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Board of Directors (Property Company):
The Board of directors consists of professional people with comprehensive commercial and industrial
property investment experience:
Izak van der Merwe — Chairman:
Izak is the founder member and entrepreneur of the VDMV Group. He surrounded himself with professional
people such as architects, quantity surveyors, civil and structural engineers, financial experts and
businessmen to advise him on matters regarding property transactions. His passion is to also create wealth
for his investors and advisors.
Wihan de Viliers:
Wihan is a qualified chartered accountant. He is a partner at LPH Chartered Accountants Inc. The majority of
their client base is involved in property transactions. Due to their vast knowledge of the property field, they are
currently involved with the consolidation of VDMV's current consortiums.
Fanie Botha:
Fanie was employed for 35 years by Sanlam. He was involved in the full spectrum of investor infrastructure.
Over the last three years, he became a key partner in the development of VDMV's property portfolio.
Board of Directors (Promoter Company):
VDMV Property Partners consists of a management team with comprehensive commercial property
investments experience:
Izak van der Merwe — CEO:
Francois Venter — MD:
With nearly a decade of operational and management experience in the financial services industry, Francois
has developed strong strategically focused business units within the financial services and construction
industries.
Craig Myburgh — FD:
Craig has been involved in the property industry since 1991. Initially in professional practice as a registered
Quantity Surveyor and later with Standard Bank Properties for 9 years as a Bank Manager in the Property
Finance Division. He facilitated the funding of the majority of the existing property portfolio for the VDMV
group. He holds a BSc (QS), a honors BComm (Real Estate & Finance) and MBA. His role within the company
include risk management and bank finance.
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Professional Team
Auditors
Price Waterhouse Coopers*
1 Waterhouse Place
Century City
Cape Town
7441
Tel number: (+27) 21 529 2000
Attorneys
De Klerk & Van Gend
Address: No 1 Tyger Valley Office Park,
c/o Durban and Old Oak Road, Tyger Valley
Tel number:(+27) 21 914 4021
Fax number:(+27) 21-914 4021
Contact person: Gerhard van Niekerk
E-mail: gvniekerk@dkvg.co.za
Property Manager
Broll Property Group (Pty) Ltd
Registration number: 1991/006198/07
Address: 14th Floor, The Terraces
34 Bree Street, Cape Town.
Tel no: (+27) 21 446 2511
Fax no: (+27) 21 419 4688
Contant person: Dave Bennie
E-mail: dbennie@broll.co.za
Broll is one of Africa's leading commercial property services groups with a comprehensive national footprint
operating from eleven offices throughout South Africa.
Property Valuers
Rode Property Valuations & Research
A division of Rode & Associates CC
(Registration number: 1987/020479/23)
Address: 11 De Villiers Street, Bellville, South Africa
Tel no: 0861 22 44 88
Fax no: (+27) 21 946 1238
Contact person: Erwin Rode
E-mail: info@rode.co.za
As one of South Africa's largest valuation firms, Rode annually values properties with a total market value of
more than R6 billion. These properties include commercial, industrial, retail and residential property. This firm
has more than 20 years of experience in the property environment under the leadership of Mr Erwin Rode (BA,
MBA).
Quality Valuations CC (Q-Val)
Address: 61 Marakele Street, Meadow Glen
Moreleta Park, Pretoria
Tel no: (+27) 12 997 4727
Fax no: (+27) 12 997 4728
Contact Person: Bernard Muller
E-mail: bernard@q-val.co.za
*Applied for
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An Overview
Many investors do not have the capital, time or expertise required to invest in commercial, industrial or retail
property. The Promoter, VDMV Property Partners, has sourced quality investment opportunities to allow
shareholding in these properties. Investors will benefit from the advantages of rental income and capital growth
through property value appreciation.
Historical Background
Over the past six years, the VDMV Property Group has purchased various industrial and commercial properties
in both Johannesburg and Cape Town and has also successfully developed two large business parks. These
properties are entirely owned by VDMV and their shareholders. The rental income is used to repay the mortgage
bonds registered over these properties. The annual rental income escalates at 7% to 9%.
After the Company has repaid all the mortgage loans to the financial institutions and the investors, the investors
will receive dividends derived from the rental income of the properties. Investors thus receive monthly dividends,
plus capital growth after their initial investment amount has been repaid.
The VDMV Property Group currently rents out a total of 68,000m² and the expected rental income for the
2009/10 year is approximately R34 million. VDMV established 6 successful consortiums with an asset value of
approximately R150 million, consisting of 105 investors. With the completion of this consortium, the asset value
will increase to R250 million.
This investment works as follows:
The investment generates passive income that grows
+ Van der Merwe Venter 12 (Pty) Ltd (Registration number 2004/030694/07) hereinafter referred to as “the
Company”, purchased two industrial properties with well established tenants. The name is to change to Van
Der Merwe Venter Limited 31 (a public company) in due course.
+ The Company obtains mortgage bonds from a recognized financial institution of up to 60% of the total
purchase price by giving the required guarantees and sureties. Only Izak van der Merwe from the Promoter
Company signs personal surety for these bonds.
+ The balance of the purchase price is obtained by offering shares in the Company to public investors.
+ The investment is made in the form of a loan by the Investors and in return shares in the Company are
allocated to the Investors. A loan account, proportionate to the investment amount, is credited in the financial
statements of the Company. Interest on the loan is payable to the Investors, depending on the selected
investment option chosen in terms of this proposal.
+ After repayment of the bond and investor loans, the Investors will receive monthly income in the form of
dividends. [Effectively on a NIL investment.]
+ Due to the benefit of gearing, the shareholding received by the investors is allocated in relation to their
contribution of total costs, plus up to 50% (e.g. 15% shareholding for 10% contribution, depending on the
percentage interest selected by an investor).
+ The properties are valued by two independent registered property valuers at least every three years.
+ The increased asset value can be applied to secure finance to purchase a further property investment.
+ Approximately 3% of the portfolio value is invested with Allan Gray to serve as an emergency fund.
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Minimum Investment and Term
+ The minimum investment amount:
+ Optimal period:
+ Minimum period:
R100 000
10 (ten) years, but not less than 5 (five)
2 (two) years
Investment options:
Investors have the following options:
+ Option A:
For a fixed interest income of 9% —
The investor will receive 10% shareholding for a
10% contribution of total cost.
+ Option B:
The investor will receive 12,5% shareholding for a
10% contribution of total cost.
+ Option C:
10% contribution of total cost (Fifteen4Ten).
+ Option D:
For a fixed interest income of 12,5% —
for 5 years
10% contribution of total cost. After 5 years, VDMV
will buy the shares at the original amount invested.
For this benefit (of buying shareholding at the
original price), the Promoter will subsides the
difference monthly (i.e. 12,5 % minus 9%)
The Promoter, at his sole discretion has the right to limit the proportion of investors in each of the
abovementioned options. Allocation will be on a first come, first served basis.
Shareholding
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+ The reasons for increased shareholding, i.e. (Fifteen4Ten) are the following:
! We grant greater shareholding to those that elect to take a lesser interest income on their loan account;
! Having a bond, enables VDMV to share the benefits of gearing with investors;
+ Shareholding is calculated by the ratio in which the investor contributes financing to the Company against
the total cost. Additional shareholding will be allocated, according to the investment option chosen.
+ Examples of options — For every R100 000 invested:
! Option A:
at 9% interest income, an investor will receive 100 of the 100,000 shares issued.
! Option B:
at 8% interest income, an investor will receive 125 shares.
! Option C:
at 7% interest income, an investor will receive 150 shares.
! Option D:
at 12,5% interest income, an investor will receive 100 Shares (VDMV buys the
shares after 5 years).
+ The Promoter receives a share of approximately 40% and delivers approximately 60% of the purchase
price of the buildings.
+ In consideration for the investor's loan to the Company, shares are allocated to the investors at R0, 01 each
(one cent) per share.
+ Should a single investor take up the full share offer, the shareholding percentage and interest structure will
be negotiated.
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Payment to Investors
+ The investor will receive interest on the loan account from day one, even though the Company has not yet
taken transfer of the relevant property. The investor will at all times receive the monthly interest income
before the 10th day of each month.
+ After repayment of the mortgage bond, the surplus is invested with the Allan Gray Fund until sufficient
funds have accumulated to repay the investor's loan in a lump sum. Until such time Investors will receive
interest income and thereafter dividends in relation to their shareholding.
Sale of the Investment
+ Should the investor wish to realize the investment, the minimum time period is 2 (two) years.
+ The cost to sell the investment is 10%. (commissions payable to intermediary, i.e. consultant, financial
advisors, infrastructure, advertising, travel and administration).
+ Co-shareholders shall have a pre-emptive right whilst it is simultaneously offered on the open market.
Cooling Off Period
+ The investor will be allowed a 10 day “cooling off” period, which means that the investment may be
withdrawn within 10 days after deposit has been made into Broll's Trust account. All monies will
immediately be repaid to the investor, without any costs.
+ After 10 days, the investment funds will be paid from Broll's trust account to the Company's bank account in
order to fund the purchase of the property, marketing and setup costs etc.
The Investment Process
+ The Investor & Financial Advisor completes and co-signs the application form.
+ All documentation, including all FICA requirements, must be submitted to the Promoter:
submit@vdmv.co.za.
+ The Investor pays the investment amount into the Broll trust account.
+ The Investor receives confirmation of receipt of investment funds to the Investor.
+ The Property Company pays out the agreed monthly interest to the Investor whilst money is on trust.
+ The investor is advised of the registration of transfer of the properties.
+ Once fully subscribed, a copy of the share certificate will then be issued to the Investor.
+ The Property Company pays out income to the investors after collection of the rentals.
+ Financial statements are prepared and audited by the company's accountants.
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Investors earn interest on the investment in accordance with the option selected (A, B or C) and they
share in the capital growth plus dividends once the loan has been repaid.
FIFTEENFIFTEEN
4 TEN 4 TEN
Interest fixed
Investment
Value of investment
TOTAL RETURN YEAR 1*
Capital Growth at 7 %
OptionAA
Option
OptionBB
Option
OptionCC
Option
@9%
R1,000,000
R1,000,000
x 1,0
= R1,000,000
@8%
R1,000,000
R1,000,000
x 1,25
= R1,250,000
@7%
R1,000,000
R1,000,000
x1,5
= R1,500,000
R70,000
R87,500
R105,000
R90,000
R160,000
R80,000
R167,500
R70,000
R175,000
R967,151
R1,458,939
R1,950,727
R900,000
R1,867,151
R800,000
R2,258,939
R700,000
R2,650,727
R1,759,032
R2,448,789
R3,138,547
R1,350,000
R3,109,032
R1,200,000
R3,648,789
R1,050,000
R4,188,547
(this may vary)
Plus interest
Total Return Year 1
(this may vary)
Plus interest
Total Return Year 10
(this may vary)
Plus interest
Total Return Year 15
*The above projections are purely for illustrative purposes as capital growth may vary.
Please Note:
For option D there is no capital growth as shares are purchased after 5 years at the original
amount invested.
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The Properties
Isando
This industrial property is situated at 184 Barbara Street, Isando. The building was purchased for
²
²
R47 600 000. The building consist of 12 340m , erected on an erf, 36 827m in extent. The vacant land is used
as yard space and rented out. The initial return on investment is 10%, increasing annually by 8%. The tenants
pay all municipal accounts and insurance. Registration of transfer of the property took place onthe 23rd of June
2009.
The building has a substantial potential for rental increase on the termination of the existing leases. One
²
tenant, for instance, is currently paying as little as R20/m . During year 3 the rent will be increased to a market
related rental, which will greatly enhance the property's return on investment.
Property Detail
+ The legal description of the property is: Portion 67 (Remaining Extent) of the farm Rietfontein 63 IR 184
Barbara Road, Isando.
+ The property is registered under Deed of Transfer No: T50609/2006. A copy of the title deed is available for
inspection at the Promoter's office.
+ The property was transferred subject to “a servitude of perpetual right of way extending to a depth of 15.24
meters along the North-Western boundary of the aforesaid Portion 15 as shown on Diagram S.G. No. A
194/22 annexed to Deed of Transfer No.6041/1932, for the use of all persons, animals and vehicles.”
+ The property is zoned: Industrial 1. The zoning restrictions are set out in paragraph 4 on page 2 of the Rode
valuation report. The necessary zoning certificates have been issued and town planning regulations have
been complied with. Documentation in support thereof is attached to the complete cautionary analysis,
which is available from the promoter for inspection.
+ The property was insured by the previous owner for R 43 000 000. The consortium has insured the
property for R 45 000 000 and all other commercial risks. A copy of the insurance policy is available at the
Promoter's offices for inspection.
Locality Map
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Tenant Schedule
2
2
Aerial View
184 Barbara Road, Isando
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Grindrod
Grindrod has been renting this industrial building in Bellville for the past 8 years and has just entered into a new
5 year lease. The purchase price is R37 337 500 and registration of transfer is expected to take place during
²
²
August 2009. The premises consist of an office complex of 1 450m and a factory of 5 150m , situated on an erf
²
of 30 000m . The vacant land is paved and used for motor vehicle storage. The land alone, without the
buildings is worth R30 million. The initial return on investment is 10% and the rental escalates annually by 8%.
The tenant recently applied for permission to install 5 underground diesel tanks on the premises. This
application needs to go through an Environmental Impact Assessment (EIA) Process, which is not only costly,
but also time consuming and may take up to two years to be finalized. This is a clear indication that the tenant is
committed to a long term lease.
Property Detail
+ The property is located at: Erf 21623 Bellville situated at 6 Talana Road, Sacks Circle, Bellville.
+ The property is registered under Deed of Transfer T68889/2003. A copy of the title deed is available for
inspection at the Promoter's office. See Rode Valuation par 2 (see title deed)
+ The property is zoned for Light Industrial. See zoning restrictions on page 2 of paragraph 4 of the Rode
valuation report. The necessary zoning certificates have been issued and town planning regulations have
been complied with. Documentation in support thereof is attached to the complete cautionary analysis,
which is available from the promoter for inspection.
+ The property is insured by the current owner for R23 000 000. The Company will insure the property for at
least R 32 000 000 and all other commercial risks. A copy of the insurance policy shall be available at the
Promoter's offices for inspection after registration of transfer of the property in the name of the Company.
Locality Map
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Tenant Schedule
2
2
Aerial View
6 Talana Road, Sacks Circle, Bellville
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The Emergency Fund
Allan Gray Global Mandate Fund
Approximately 3% (three percent) of the consortium value will be invested with Allan Gray. This will be used as
an emergency fund.
Cash flow shortages due to vacant premises will be covered by the emergency fund. As a result of the rental
income increasing annually, the possible shortfall is limited to the first year or two.
As the rental income increases annually, the surplus income will begin to repay the capital on the bond.
Once the bond is fully repaid, surplus income will be invested until such time that the investor's loan account
can be settled in a lump sum.
After the bonds have been repaid, all surplus income will be invested in the emergency fund until such time
that the amount is sufficient to settle all loan accounts to investors.
Company Description And Structure
+ VDMV 12 is a registered private company under registration no. 2004/ 030 694 /07. The Company is
governed by the laws of the Republic of South Africa and the financial requirements are under the strict
supervision of the auditors.
+ It is envisaged that the company structure will in due course change to a public company and that the name
will change to Van Der Merwe Venter 31 Limited.
+ The shareholders agreement is contained in the application documentation and a signed copy will be
returned to the Investor.
+ A copy of the Memorandum and Articles of Association of the Company is available for inspection at the
Promoter's offices.
+ The financial year end of the company is 28 February annually. 100 000 shares will be issued. The
control over the unissued shares rests with the board of directors of the Company until the first annual
general meeting is held, unless a special meeting is arranged earlier.
+ A pro forma balance sheet is attached. Income shall be distributed monthly according to the interest option
chosen.
+ No special voting rights shall be attached to any share or shareholding.
+ The directors have the authority to make loans on behalf of the company, to apply such funds for expansion
in the normal cause of business to the benefit of the investors.
+ The companies have no further financing powers, unless the shareholders takes a specific decision to the
contrary.
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Financials
CONSORTIUM AMOUNT
Acquisition & Consortium Cost
Buildings @ cost
+ Grindrod Building
+ Isando Building
R100 000 000
R 84 937 500
R 37 337 500
R 47 600 000
Advance Cost
Emergency Fund
Bond & Transfer Costs
Bank Raising Fee
R 8 493 750
R 3 300 000
R
223 750
R 3 045 000
R 100 000 000
_________________________________________________________________________________
INCOME STATEMENT
Income
- Combined Property Rental Income
Less: Operating Expenses
Rates & Taxes (part recoverable)
Insurance (part recoverable)
Management Fee
R 10 602 369
Operating profit
Less: Finance Cost
Interest on Bank Loans (fixed)
Investors interest (fixed)
R
882 766
R
9 719 603
R180 000
R 60 000
R642 766
R5 500 000
R4 562 500
R 10 062 500
___________
*Profit (before TAX) for the year
(R
342 897)
_________________________________________________________________________________
BALANCE SHEET
Assets
Non-Current assets
R 96 700 000
Investment Property
Current assets
R96 700 000
Cash & Cash Equivalents
R3 300 000
R
Total Assets
Equity & Liabilities
Equity
Shareholders Loan
Retained Income
3 300 000
R 100 000 000
R50 342 897
R 342 897
Liabilities
Financial Liabilities (Bank Bond)
R 50 000 000
R 50 000 000
R50 000 000
Total Equity & Liabilities
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R 100 000 000
*This first year loss will be funded by the Promoter.
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Financial Assumptions
+ Of the R100 000 000 total costs, R50 000 000 is to be raised via Bank mortgage finance. The applicable
interest rate is 11% fixed by the promoter. Standard Bank and Grindrod Bank are the providers of these
loans. These loans are allowed in terms of the Memorandum and Articles of Association of the Company.
+ Net income has been calculated after the deduction of property expenses from the gross rental income.
Contractual rentals escalate at 8% per annum.
+ A 2% (two percent) vacancy allowance has been deducted from gross income from year 3 (three) in the
Isando building and from year 6 (six) in the Grindrod building. A 1% (one percent) maintenance allowance
has been allowed as well as a 6% (six percent) management fee.
Valuations
Two valuations of each property were submitted by:
+ Rode Property Valuations & Research
+ Quality Valuations T/A Q-Val
The full valuation reports are available at the Promoter's offices for inspection.
Notice And Disclosures
Underlying principles
It is important to take cognisance of the following underlying principles in making this investment:
1. Commercial, industrial and retail property investments are usually long-term investments. The potential
return on investment may only begin to realize after a minimum term of five years.
2. There is no duty on the promoter of this consortium to establish a secondary market for the re sale of the
investor's shares. Prospective investors should therefore be cautious before investing in unlisted shares
and recognize that there is a substantial risk that the investors may not be able to liquidate its shares in
future, should the investor elect to do so. The promoter however, shall endeavor to facilitate the re-sale of
all shares in this investment, as successfully done in the past.
3. The Promoter also wishes to bring to the investor's attention that the market value of the property may differ
from the consortium value, mainly because of the opportunity cost involved in the investment.
4. Globally; banks, businesses, financial markets and equities experienced a relapse in value recently. This
investment is not resistant against such occurrences. Should these world economic trends have a ripple
effect on the South African economy, it may have a negative influence on the undertakings hereby offered
by the Promoter. The Promoter will at all times endeavor long term stability of the investment in the best
interests of the Investor.
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Investors' Protection
1. When an investment is made, the funds are deposited into the Broll Property Group's trust account. This
trust account is regulated in accordance with Section 32 of the Estate Agency Affairs Act, Act 112 of 1976.
2. Written confirmation of such deposit will be given to the investor within 7 days after such deposit. The
name of the payee, Broll Property Group trust account, is printed in bold on the application forms.
3. While the investor's funds are kept in the trust account, the investor shall receive interest on the deposited
funds as per the interest option chosen by the investor.
4. Broll controls the management of the account. The funds are kept in the investor's name until
registration of transfer of the property. In terms of the investors' mandate the funds may not be paid to the
seller before registration of transfer of the property.
5. In the event of the investment consortium not proceeding, funds deposited for investment by the investor
will be repaid in full.
6. The property was acquired after a successful due diligence analysis had been carried out by the
Promoter. A copy of this report is available at the Promoter's offices for inspection.
7. The effective date of commencement of this investment will be the date of payment of the investment
funds into the trust account.
8. No member of the promoter and/or his/her family had any direct or indirect interest in the properties
purchased under this investment.
9. The Promoter makes provision for any capital deficits by investing a portion of the investment in an
emergency fund with Allan Gray.
10. Any expenses that need to be incurred prior to registration of transfer of the property are borne by the
Promoter and no investors' funds are used for this purpose.
11. The Investor will be allowed a 10 (ten) day “cooling off” period, which means that the investment may be
withdrawn within 10 days from inception in which case all monies will immediately be repaid to the
investor, without any costs.
I, Izak Johannes van der Merwe, Chief Executive Officer of VDMV Property Partners, hereby declare that a
comprehensive due diligence analysis has been carried out with regard to the properties involved in this
investment opportunity. I declare that this analysis includes commercial, financial and legal aspects, as well as
the examination of all the existing leases. The valuation which was carried out by registered valuers is
available at the Promoter's offices and I declare that I am satisfied with the results thereof.
I.J. van der Merwe CEO
For VDMV Property Partners
12 June 2009
DISCLAIMER
VDMV Property Partners has taken care to ensure that the information contained in this document is correct
and will not be liable for any errors that may have occurred during the drafting or printing hereof. VDMV
Property Partners further indemnifies itself against any misrepresentations which may arise from any
interpretation of the information contained herein or resulting from the reproduction thereof either verbally or in
writing, without verification to the original document.
19
vdmv
Properties from our portfolio:
Simonrust Shopping Centre, Stellenbosch
Cecil Morgan Street, Stikland
Kenwil Drive, Okavango Park
Gemini Street, Brackenfell
Eagle Street, Brackenfell
20
vdmv
21
Gemini Street, Brackenfell
Danie Uys Street, Stikland
Gemini Street, Everite Park, Brackenfell
Trafford Road, Blackheath
Cnr La Belle & Willow Road, Kaymor, Stikland
Electron Road, Triangle Farm, Bellville South
Willow Road, Stikland
Tedric Street, Stikland
vdmv
Investor loans repaid as a lump sum

Your Property Partner creating wealth for generations

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