what is section 12J?

Section 12J is an investment tax incentive designed to create jobs and boost the local economy by encouraging investment into a range of private companies which meet defined criteria. The incentive gives taxpayers the ability to write off 100% of their investment against their taxable income in the year they invest.

Investors benefit from up to 45%* immediate tax relief, reducing the cost of the investment, providing downside protection and enhancing overall returns.

*at the maximum marginal South African income tax rate

A fully tax-deductible investment into a portfolio of asset-backed rental businesses.

Westbrooke Aria (“Alternative Rental Income Assets”) is a fully tax-deductible South African investment which provides growth capital to a portfolio of low-risk, asset-backed rental businesses with contractual revenue streams. Today, Westbrooke Aria is the largest S12J strategy in South Africa, with over R1.3 billion under management across over 35 underlying businesses.

LAUNCH DATE:
FEBRUARY 2016
FUND TYPE:
SOUTH AFRICAN COMPANY
REGULATION:
FSCA AND SARS
TARGET 5-YEAR IRR:
12-15% P.A.

(AFTER FEES AND INVESTOR EXIT TAXES)

TARGET DIVIDEND YIELD:
6-10% P.A.

(BASED ON NET INVESTMENT)

key investment highlights

100% tax-deductible

Partnership with experienced and reputable operators to ensure alignment of risk and reward

Investment into a diverse portfolio of asset-backed companies which generate predictable revenue streams

A defined exit after 5 years as Westbrooke Aria is a “self-liquidating” investment strategy

Targeting a c.6% – 10% dividend yield on net investment (gross investment less the tax deduction) which is payable semi-annually