PPI Factsheet - ARM Investment Managers by xiangpeng


									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

•   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

                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
   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

   “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

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



Name of Investor: ……………………………………………

(For and on behalf of Manager)



NAME: …………………………………………………….

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