2. 2
“Through PPG I wanted to create a real estate investment
solution with a low-risk, high-yield and short-term focus for
a select group of investment partners.”
– Candice Schultz, Managing Director PPG
The following presentation outlines our
investment process and deal structure.
Prime Property Global is led by commercial lawyer and entrepreneur Candice Schultz, a true powerhouse in SA’s investment
community. Candice has a long list of business accolades; she was the youngest person to assume a directorship of Eversheds
international law firm and as a deal maker has structured transactions totaling more than R3.5 billion within property, retail and
ICT industries.
At PPG we are proud South Africans and love this country, but with the progressive weakening of the Rand and economic
instability it is imperative, as savvy investors, to preserve our wealth and diversify investment portfolios with offshore assets –
particularly as a Rand hedge in strong currencies like the U.S. $.
For a limited, select group of investment partners who want to grow their wealth through offshore property, we construct new
residential homes in Florida, USA that provides a low-risk, short-term, high-yield investment opportunity. Unlike the highly
volatile stock market or longer term unit trusts our model provides consistent, predictable returns.
Due to the US regulatory environment; which allows for quicker construction turnaround, a shortened transfer process and
favourable tax breaks for foreign investors - our structure has reduced the risks of having your cash tied up for long periods of
time and can confidently offer lucrative returns in a safer first world as an ideal strategy for any global investor.
Prosper through property!
3. 3
Rand Hedge
- Continuing depreciation of ZAR/USD
- In 2015 the ZAR lost 34% to the USD
- This will continue by a minimum of at least 6.5% per annum
over next 4 years
In 4 years time you would have lost more than 25% of your total wealth
if your assets are all kept locally in Rands!
4. 4
FLORIDA
- #1 Retirement State in the US
- Sunshine State: 360 days of sun a year
- 1,000 people move to the state of Florida every day
- 44,000 Single family home shortfall each year
A survey of members of the Association of Foreign Investors in Real Estate said the United States is the most “stable and secure” country
for real-estate investment “by a wide margin.” The U.S. is also the top market when it comes to capital appreciation and for future real-
estate purchases.
U.S. housing market data shows a continual rise in primary prices for residential dwellings. In 2014 the median sales price
rose by 15.4% to $305,000.
Why Florida, USA…
5. 5
Single Family Home Construction
PPG provides a turn-key service, managing the construction, reporting and sale of
the home. We have an unfair advantage - our partners are seasoned experts
in the area with over 1,000 projects under their belt.
Build Duration: 150 days / Total turnaround: 180 days
- 2450 Sq Ft Lot
- 1625 sq Ft under roof
- 3 Bedroom, 2 Bathroom, 2 Car Garage
Currently there is an undersupply of single family homes in the areas we operate in. As such this
specific category of home is usually sold and under contract before construction has been completed.
Total investment per unit: $ 140,000 inclusive of stand
Two new builds can be completed back-to-back per year with the above investment amount
7. 7
Funds for each phase are only released to the builder on delivery of certificates and
approvals for the previous phase. An independent appraiser signs-off on every stage.
Draw Schedule: Construction Breakdown
20%
Plot, permit fees and
deposit.
$32,000
15%
Slab, block and beams
complete.
$20,250
20%
Roof and mechanicals.
Plumbing, heating and
wiring. Exterior doors
and windows hung and
glazed. Bathroom tubs
set, roof framed.
Inspected by City/County
and stickers affixed.
$27,000
20%
Exterior and interior:
Insulation, drywall and
hardwood installed.
Siding and exterior trim
installed. Building closed
from weather.
$27,000
15%
Cabinets and
countertops installed.
Plumbing and electrics
connected. Appliances
installed. Interior and
exterior paint complete.
Sewer and water
connections installed.
$20,250
10%
All trades complete.
Final lien released for all
subs on receiving
Occupancy Certificate.
$13,500
1
2
3
4
5
6
Total Cost
$140,000
8. 8
Deal Flow
1
Plot inspected and bought.
Due diligence conducted
on area and plot location.
2 2 3
Construction
Commences
Property
Completed
Property Sold
Role over into
deal 2
We have invested significant resources
in developing:
- Market Knowledge
- Human Resources
- Transaction Structure
- Infrastructure
9. 9
DetailedStep-by-StepReporting
Investors can view progress in close to real time
At every stage of the build photos and financial reports are submitted
so our investment partners feel like they are part of the action
11. 11
Investor Trips
Twice a year PPG invite investors to attend a 4-day visit to the U.S.
This is the ideal opportunity for our investment partners to meet our construction, sales and
support teams and witness the construction process and see the final product.
12. 12
Profit Sharing Model
PPG offers two profit sharing models:
1) Profit is shared 60/40 in favour of the investor on a deal by deal basis (6 month turnaround per deal)
2) PPG issues a preference share to investor set at 20% over 12 months
- Profits are paid in U.S. $ and there will still potentially be an additional profit when converting to ZAR
- There is a $40,000 annual U.S. capital gains tax exemption for foreign investors, thereafter profits are taxed at 15%
- SA Income tax on profits remain the responsibility of the individual investor
NB: PPG works with a limited group of 10 investors per year. Investor uptake for 2016 closes on 31st March.
13. 13
Deal Structure
The investor may at his/her discretion reinvest in a further build or be repaid the
investment amount plus the profit portion.
Investors can participate with minimum investment amount of $ 50,0001
2
3
4
5
Investors each become members of an LLC, incorporated as an SPV
for the purpose of holding the title to the land
Investors investing the full amount are entitled to set up their own LLC
In each case the full investment amount is paid into the relevant LLC’s
bank account upfront
6
Upon sale of the property, the full sale proceeds will be paid into the LLC’s
bank account
The draws for the phases of construction are then debited from the LLC’s
bank account
14. 14
1 3
Candice Schultz
MANAGING DIRECTOR
Devon Brough
DIRECTOR: STRATEGIC PARTNERSHIPS
2
Bianca da Silva
DIRECTOR: INVESTOR RELATIONS
Our Core Team
Our people know their markets inside and out. Investment managers, researchers, consultants, analysts, marketers, account
managers, quantity surveyors and property agents – every single one is experienced, knowledgeable, reliable and passionate
about property investment. Our expert team is our most powerful tool in guiding you through the complexities of international real
estate while delivering strong returns.
