ARM Investment Managers Pooled Property Investment Investment Objective: The investment scheme seeks to provide capital appreciation and income to investors through investments in the real estate sector of Nigeria. Concept: The increasing demand for accommodation in the Lagos area (especially the Ikoyi – Ajah axis, with its proximity to the Central Business District) and rising property value as well as increased economic growth provide a good rationale for investment in the real estate sector. The Pooled Property Investment (PPI), which is a closed end fund, will invest in a mix of residential buildings. The Investment Scheme will earn revenue through realised capital appreciation of the underlying assets and rental income. Also, the PPI (and investors) will benefit from discounted purchase price of properties that accrue from economics of scale. In addition, there is the likelihood of immediate occupancy of the PPI’s assets that are acquired for rental purposes. This will be coordinated by ARM. PPI’s goal is to provide investors with alternative investment opportunities that would earn higher rates of return than money market instruments, and most probably, provide rates comparable to that of the stock market at a moderate to high risk level. The Investment scheme will distribute rental incomes in the form of dividends to investors annually, when feasible. Risk Rating: Moderate to high risk. Investor Profile: This Investment is suitable for investors who are willing to achieve capital growth in the long term, with a moderate to high risk profile. Minimum Investment Amount: N2,000,000.00 Features • Close-ended investment • Investment will be managed on a unitized basis ARM Investment Managers • Duration: Minimum of 3 years • Withdrawals within three years of the investment are subject to an early redemption penalty of 30% of the investment value at redemption • Reports: Annual • Rate of return is dependent on rental income and capital appreciation of the underlying assets. Administrative Fees: 10% per annum of rental income Return Analysis: We provide below conservative estimates for the returns on investment. Our estimates are based on • An investment value of N26,250,000 • Average 5 years inflation rate of 14.95% • Initial rental income of N1,250,000.00 Capital Value of Income generated Returns from appreciation on Year investment from Rentals Rental Income Investment 2006 26,250,000.00 2,500,000.00 11% 0% 2007 30,182,250.00 - 0% 15% 2008 34,703,551.05 3,305,100.10 11% 15% 2009 39,902,143.00 - 0% 15% 2010 45,879,484.02 4,369,474.67 11% 15% 2011 52,752,230.72 - 0% 15% 33% 75% Total Returns from Investment 108% ARM Investment Managers Terms & Conditions of the Pooled Property Investment 1). Definitions: “The Commencement Date” means the date on which the Manager receives value for the payment made by the Investor, and which shall be communicated to the Investor in writing and stipulated in the payment schedule; “PPI” means the Pooled Property Investment “The Investor” means any person(s) who invests a minimum of N2,000,000 in the Pooled Property Investment “The Manager” means ASSET & RESOURCE MANAGEMENT COMPANY LIMITED, including its successors-in-title and assigns; “The Duration” means a period of 3 years, after which the Manager would pay to the investors the capital value of their investments together with all interest accrued on the PPI Property after all necessary deductions have been made. “The Payment Mode” means the schedule of payments to be made by the Investor for financing the PPI as agreed between the parties. 2). The Investor hereby subscribes to the Pooled Property Investment. 3). The Manager will manage the Investor’s investment in the PPI property collectively with those of other investors, on the terms and conditions set out hereunder. 4). Denomination: The PPI is offered in Units. 5). Redemption: There shall be no redemptions for the entire Duration of the PPI, provided that any redemption made during the investment period will be subject to an early redemption penalty of 30% of the investment value at redemption. 6). Price: The value of each unit is N100. The price of a Unit is subject to change by the Manager at any time. 7). Fees: The following fee shall be payable to the Manager: Administrative Fee of 10% p.a of rental income The above fees shall be charged annually by deducting same from the rental income on the PPI property. 8). Reports: The Manager shall prepare and deliver annual reports and accounts to the Investor in respect of his investment. ARM Investment Managers 9). Dividends: Dividend (where applicable) would be paid to the Investor on an annual basis. 10). Force Majeure: The Manager shall not be responsible for any delay or failure to perform its obligations under this Agreement if the delay or failure is attributable to force majuere. For the purpose of this PPI, an event of Force Majeure is an unforeseen and unavoidable event beyond the reasonable control and contemplation of the Manager. 11). Termination: The investment would be automatically terminated at the end of the Duration of the PPI. Upon termination the Investor will be entitled to receive the total value of his investment together with all accrued interests thereon after relevant deductions have been made. 12). Governing Law: These terms and conditions and the transaction to which it applies shall be governed by, and construed in accordance with the Laws of the Federal Republic of Nigeria. All disputes arising between the Manager and the Investor arising out of or in connection with these terms and conditions or otherwise relating to the rights, duties or liabilities of each party shall be resolved solely and exclusively by arbitration pursuant to the Arbitration and Conciliation Act, Cap 18, Laws of the Federation of Nigeria 2004, and any amendments made thereto. I hereby confirm that I have read the above terms and conditions and that I understand them, and agree to be bound by the said terms and conditions. Signed:_________________________________ Date:____________________ Name of Investor: …………………………………………… (For and on behalf of Manager) Signed:________________________________ Date:_____________________ NAME: …………………………………………………….
Pages to are hidden for
"PPI Factsheet - ARM Investment Managers"Please download to view full document