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The Underprivileged Foundation (www.underprivileged.org.za) serves the impoverished in South Africa and is seeking return based funding for its acquisitions. Included in the strategy is a profitable real estate component for funders.
The foundation is on a significant growth strategy to acquire SA Government & Corporate tenanted buildings on strong covenants, aiming to become the dominant investor in this niche asset class in South Africa. Securing a financial partner will solidify the strategy and provide for a meaningful advantage to both parties. Interest rate differentials provide a distinct advantage whilst currency risk is carefully managed in the provisions.
The Underprivileged Foundation has offers in on 2 office blocks and is seeking to discount the leases. 2x15 year leases escalating at 7.5% p.a. over office blocks in South Africa let to government departments with leases signed by Provincial Government, constituting a low risk high value income stream (for the sake of a conservative stance, we have overprovided for expenses to the extent of 23.5% in the form of sinking fund provisions). Depending on the discount rate, it would be feasible to discount over a lesser term to achieve the capital requirements of the foundation.
Should this lease discount opportunity be of interest to your company, please provide an indicative discount rate and capital you would be prepared to offer. If these indications meet the foundation's needs, documents to your satisfaction will be submitted to enable you to proceed and close the transaction.
No upfront fees ; No down payment
The leases are strong covenants and the NPV exceeds capital required