Ref: Al Amal Project IN ASSOCIATION WITH DMC COMMERCIAL PROPERTY BROKERS THE ACQUISITION OF BLUE CHIP COMMERCIAL PROPERTY Channel Islam International Suite 3 & 4, ISV Centre Gemsbok Street, Lenasia, South Africa PO Box 3170 Lenasia, 1820 South Africa DMC Commercial Property Brokers 70B Voortrekker Str Klerksdorp, South Africa PO Box 10498 Klerksdorp, 2570 South Africa Tel: +27 (11) 213-2700 Tel: +27 (18) 462-9477 DMC Commercial Property Fax: +27 Brokers (11) 213-2727 PO Box 10498Fax: +27 (18) 462-9478 Tel: +27 (18) 462-9477 70B Voortrekker Str Email: info@channelislam.com Klerksdorp, 2570 Email: younuskarim@webmail.co.za Fax: +27 (18) 462-9478 Klerksdorp, South Africa South Africa Email: younuskarim@webmail.co.za Channel Islam International Suite 3 & 4, ISV Centre Gemsbok Street Lenasia, South Africa PO Box 3170 Lenasia, 1820 South Africa Tel: +27 (11) 213-2729 Fax: +27 (11) 213-2727 Email: info@channelislam.com
INTRODUCTION DMC Commercial Property Brokers We at DMC Commercial Property Brokers are focused entirely in the acquisition and disposal of commercial properties. We manage properties in nationally with a team of over 100 skilled employees which include plumbers, electricians, tilers, carpenters, brick-layers, etc Our management team of professionals comprises specialist with expertise in every aspect of property analysis and acquisition, strategic planning, asset management, on-going fund management and eventual asset divestment. Our services offer broking, maintenance, hiring and letting services, and industrial and commercial construction. Our sale of investment range up to R 100 million. With the introduction of our syndicates, we, in association with Channel Islam International, wish to offer investments from R 25 000 to earn a stable income. These investments are bond-free, totally Halaal and therefore Shariah compliant. We guarantee stable income by acquiring bluechip tenants with stable lease agreements. Investments to optimise your returns In today s volatile times, when equity currency and economic markets fluctuate violently, investment in property offers investors a refuge from uncertainty. Property investment continues to be a long-term hedge against inflation offers the possibility of income growth and security. DMC Commercial Property Brokers have successfully invested in property on behalf of investors over the past three years. Wealth has been created for our shareholders and many of them enjoy a regular stream of rental income. Their vision has ensured that they continue to build their asset bases for financial independence. As a valued investor, we extend an invitation to you to participate in our latest property syndicate. Sole Investments If one has a potential interest in investing solely in property, contact Younus Karim on 083 440 2325. Building Photo
INVESTMENT SUMMARY This Product Disclosure Statement (PDS) offers you the opportunity to become a part owner of Al Amal Project in Orkney, by investing R 35 000.00, or more. Type Tenancy Value of Project Shareholder Loans Number of Units Cost per Unit Bond Net Income Yield Rental Escalation Dividends payable Commencement Date : Retail Shops, Residential : Fully Let : R 3 500 000,00 : R 3 500 000,00 : 100 : R 35 000,00 : Nil : +12,38 % : 5 % : Monthly : AFTER REGISTRATION This is a bond free investment! (Not linked to interest and therefore is Shariah Compliant)
THE PROPERTY The Property The property is located centrally in the Orkney CBD. The taxi rank is close by, with many other corporates in the vicinity Tenancy The property is fully tenanted with medium to small business occupants, and residential flats which will be constructed Return The total return for investors is dependant on the initial investment amount. The return will be + 12,38 % (see income projection) TENANCY DETAILS Rental income Where a tenancy is due to expire during the Forecast Period, allowance must be made for a loss of rental over the re-letting period of three to six months and for the new rental to reflect the Responsible Entity s estimate of market rentals and leasing costs at the relevant times. Alterations & Renovations After registration of the building, DMC will construct an approximate of 10 flats. The relevant monetary costs for the alterations have been included in the price of the project. Returns on the flats will only be paid once they have been completed. Tenants Period Remaining Monthly Rental ( R ) Phone Shop Empire Furnishes YP Optometrists Latif Shop Cell Shop Dr Mosam MCG Isaac Hair Salon Omars Linen Bakery Shop Tandani 2 Years 3 Years 3 Years 4 Years 2 Years 3 Years 2 Years 3 Years 2 Year 5 Years 1 Year 800.00 4 000.00 1 200.00 3 300.00 3 000.00 2 420.00 2 900.00 2 200.00 3 508.78 3 425.00 2 200.00 10 X Flats ( To Be Constructed ) @ R 1 200.00 each 12 000.00 TOTAL MONTHLY RENTAL EXPENSES Rates & Taxes Insurance (Takafol) RSC Levy Bank Charges Administration Cost TOTAL EXPENSES R 40 953.78 +R 2300.00 +R 640.00 +R 180.00 +R 300.00 +R 1410.00 NETT MONTHLY RENTAL R 36 123.78
KEY FEATURES & BENEFITS Dear Investor We are pleased to present investors with this offer of units in the property syndicate. The offer enables investors to participate in the part ownership of a commercial retail and residential building located in the Orkney CBD. Purpose of this offer It is proposed that the funds raised under this offer will be used to acquire 100% of the Building in Orkney. The value of the project for the proposed investment is R 3,5 million which will be funded through this PDS. How to Apply Applications to subscribe for units can only be made on the application form and must be accompanied with a certified ID copy. Where to send the application form Channel Islam International Suite 3 & 4, ISV Center, Gemsbok Street, Lenasia, South Africa P. O. Box 3170 Lenasia, 1802 South Africa Tel: (011) 213-2729 Fax: (011) 213-2727 email: info@channelislam.com OR DMC Commercial Property Brokers 70b Voortreker Street, Klerksdorp,2570 P.O. Box 10498 Klerksdorp, 2570 Tel :(018) 462 9477 Fax :(018) 462 9478 Email: younuskarim@webmail.co.za Is this investment Halaal? This investment is Halaal and Shariah compliant, it is not linked to any interest or interest baring banking facilities. Insurance All syndicate buildings will be registered with the Halaal insurance brokers, ie, Takafol. This will take place after registration of the building. The Time Period Registration of the proposed building could take up to 4 months. Returns are only paid after registration of the building has taken place. Valuation The value of this property is equal to the initial value of the regular flow of income that is yielded by the property. The nett income is capitalized in perpetuity which then provides us with the Open Market Value of the subject property. Attractive returns Forecast income returns are for 5 financial years. Forecast returns are + 12,38 % per annum, escalating at 5% yearly. Returns will be paid on a monthly basis. Capital growth prospects Property investment can provide rent that usually keeps ahead of inflation. The proposed property presents well and have a spread of tenancies. We consider there to be sound prospects for capital gain throughout the life of the syndicate. Minimum investment You may invest any amount in R 35 000.00 increments. The Funds Required The total amount of funds required for the investment project is R 3,5 million. All monies will be deposited in a conveyancer trust account. Administration costs DMC Commercial Property Brokers and Channel Islam International will charge a monthly fee of R 1410.00 Initial costs Each Shareholder has to contribute R 300.00 for the transfer costs, conveyancing costs, company formation costs and other administration costs which should be submitted with the application form. Title Deeds Title deed and all relevant details of the related investment will be held at Channel Islam International property division. All related
KEY FEATURES & BENEFITS Taxation The corporate structure envisaged allows for returns payment to qualify for certain tax allowances. The rental income distributed is classified as benefits or interest for tax purposes. Should there be capital gains on the disposal of investments units by shareholders will become liable for CGT in their individual capacities. It is recommended that investors consult their tax advisor in matters. Over Subsciption In the event of this offer being oversubscribed, the investor will retain surplus funds for another investment or refund monies. Syndicate Process An option will be signed on the proposed building Applications to be sent in by investors A total of 100 shareholders needed to complete investment Letters will be sent to clients confirming applicant acceptance A limited company will be formed Company to be VAT registered Clearance certificate will be derived from municipality Conveyancing cost to be payed Logging to be done at deeds office Registration of the investment which could take upto 4 months Share certificates to be distributed to investors Regular Communication After you have invested, we will send you: a letter confirming your application for an investment; An annual statement tax statement will be issued, showing income components to assist you to prepare your tax returns; An annual financial report containing details of the financial position and performance over the financial year. The Risks One of the benefits of investing in a property syndicate is that they are funded on the basis of non-recourse finance. Financing is secure by the property alone, and your liability under the finance arrangement is limited to your initial cash contribution. An investment in the syndicate should be considered as long term. The absence of a secondary market means the syndication interests and units are likely to be liquid. Liquidity DMC Commercial Property Brokers and Channel Islam International are not obliged to buy-back any shares. The shares can be sold individually with the consent of the companies involved. On the sale of a share, it will be evaluated according to its market value. Example: Mr Z bought a share in the Spesbona syndicate at R 50 000.00. He held the share for the period of 1 year, whilst receiving the appropriate returns. After the 1 year period, Mr Z got an evaluation from DMC Commercial Property Brokers which determined that his share value was R 56 000.00. He then sold his share with the consent of the companies involved. DMC Commercial Property Brokers will charge a 5% administration fee on the profit of the sale of a share/shares. Advantages of Syndicate Investments The advantages of investing in syndicates over other financial investments are: - Higher Returns - Low Risk - Security - Management Cover - Maintenance Cover - Exit Facility If one wants to be added to our email database, which is more efficient and convenient, please email us at : younuskarim@webmail.co.za
KEY FEATURES & BENEFITS FICA REGULATIONS THE FOLLOWING DETAILS ARE REQUIRED. What is FICA? The Financial Institutions Certification Act, introduced in South Africa in 2003, is legislation to combat money laundering. What documentation is required? Although the requirements may at first seem quite onerous, they are for your protection and apply to all financial institutions in South Africa. 1. Proof of Identity. Certified copy of a valid SA Identification document. Green, bar-coded South African ID book. A temporary ID document is not acceptable. 2. Proof of registration with SARS. Provide an original or certified copy of an official SARS (South African Revenue Services) document. SARS document may be a provisional tax return or tax return document reflecting your name. 3. Proof of Physical Address. Provide an original or certified copy of one of the following documents. Utility Bill (Water & Lights) Municipal rates and taxes invoice Telephone bill (Telkom and cell phone itemized billing statements are acceptable) Current Lease / Rental Agreement Valid TV license Long-term or short-term insurance policy document Recent SARS tax return (IRP5) *The document must be in the applicant's name, must not be older than 3 months and must confirm your physical address.* 4. Proof of Bank Details. An original or certified statement of your personal savings, transmission or cheque account. Only bank stamped statements are accepted. Internet statements are NOT valid. FICA REQUIREMENTS FOR APPLICANTS FOR INDIVIDUALS: FOR TRUSTS: Certified copy of your passport or National Identity Document Bank statement, credit card bill or original utility bill, such as rates, electricity or telephone Application form, which is to be signed by broker/financial intermediary, if any If you are acting as an agent or representative of another, a copy of the power of attorney or other written authorization signed by principal Residential address Income tax and VAT number, if applicable Documentation as for individual in respect of each trustee and authorized representative Copy of the Trust Deed, will or other document creating the trust and the Masters authority Authorized signatory list on letterhead Resolution authorizing investment and person to act on behalf of the trust Trust registration/reference number Address of trust and address where majority of trust assets are held Full particulars of beneficiaries and settlor of the trust and Income tax number and VAT number, if applicable Information as per application form Important Note: The numbers used and the views expressed in this report or any attachment thereto are based upon input from a number of sources. Any projections and/or calculations do not hold true to all economic environments and political uncertainties. No warranties are given. Please take cognizance of this limitation. E&EO.
INCOME PROJECTION Forecast Summary of Income, Expenses and Shareholders' Returns YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Total Rental 491 445.36 516 017.62 541 818.50 568 909.42 597 354.89 Less Expenses 57 960.00 60 858.00 63 900.90 67 095.95 70 450.74 Nett Income 433 485.36 455 159.62 477 917.60 501 813.48 526 904.15 Forecast Summary of Returns YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Nett % Returns 12,38% 13.02% 14,32% 15.03% 15.78% Returns Per Year 4 334.85 4551.59 4774.17 5018.13 5269.03 *Income and expenditure is calculated at 10% escalation per annum. *Income and Expenditure is only a forecast or estimate. Syndicate Management Team Management Ashraf Seedat Cell: 083 377 7501 (Chairman CII Holdings (Pty) Ltd ) Essop Patel Cell: 0837868608 (Financial Director CII Holdings (Pty) Ltd ) Consultants: Mehmood Abed Tel: 011 213 2729 Moaz Tel: 082 413 2626 DMC COMMERCIAL PROPERTY BROKERS Management: Younus Karim Cell: 083 440 2325 (Chairman DMC Commercial Property Brokers) Consultants: Abdul Gani Karim Cell: 084 606 6521 Grace Williams Tel: 018 462 9477 For further queries, please do not hesitate to contact one of our consultants
APPLICATION FORM INTRODUCTION DMC Commercial Property Brokers Tel: +27 (18) 462-9477 Fax: +27 (18) 462-9478 Email: younuskarim@webmail.co.za Channel Islam International Tel: (011) 213-2729 Fax: (011) 854-2859 Email: info@channelislam.com Please fill in block letter Syndication Name: Name of Investor: This name will appear on share certificate Reg. No. (if not individual) Residential Address: Residential Address: Postal Address: Cheques will be posted to the above address Code: Tel: Home Tel: Work Email Cell: Fax INCOME TAX DETAILS Number: Office: I.D. Number: BANK DETAILS Name of Account Holder: Name of Bank: Branch: Branch Code: Type of Account: Account Number: Number of shares to be purchased @ R 35 000,00 Initial Costs of R 1000.00 (tick if included) I the undersign, is true and correct. Applicants Signature Date do hereby declare that the above information Banking Details Bank: Standard Bank Account Name: Extra Dimensions CC Account Number: 001700480 Branch: Lenasia Branch Code: 015-137
DECLERATION DMC Commercial Property Brokers Tel: +27 (18) 462-9477 Fax: +27 (18) 462-9478 Email: younuskarim@webmail.co.za Channel Islam International Tel: (011) 213-2729 Fax: (011) 854-2859 Email: info@channelislam.com 1. I hereby declare that the information contained herein is true and correct and that where this application is signed in a representative capacity. I/we have the necessary authority to do so and that this transaction is within my/our power granted by my/our principal. 2. I/We warrant that in respect of this investment I/we have not contravened any money laundering legislation and regulations applicable to me/us. 3. I have read and understood the contents of this application form and agree to be bound by the terms and conditions contained herein. 4. I/We understand that it is my/our regulation to familiarize myself/ourself and accept the risk associated with the investment. 5. I/We have attained the age of majority in terms of the laws applicable to me/us and there are no legal encumbrance which prohibits me/us from entering into this agreement without the consent of my/our parent/guardian. 6. I/We confirm that information pertaining to my/our account may be released to myself/the agent identified below. 7. I/We are beneficial owner(s) of the account or I/we are acting on behalf of the beneficial owner in a representative capacity. 8. I/We hereby permit DMC Commercial Property Brokers/Channel Islam International to conduct any investigation to verify that the information and documentation included in this application are correct. 9. I/We hereby waive any claim, of whatsoever nature, that I/we may have against DMC Commercial Property Brokers/Channel Islam International in future relating to or arising for the investments, save insofar as it arises from any dishonesty, theft or gross negligence of the company s employees, agents or representative. 10. I/We hereby acknowledge that I/we have acquainted myself/ourselves with and accepted the fees and expenses that are to be charged to my investment from time to time. Applicants Signature Date ID Number