Student housing is proving a defensive investment given the demand / supply dynamic in South Africa, and the consistent performance compared to other Property Classes.
Capitale Student Housing Fund is a Development fund constructing Modular student housing assets. The Modular build format means cost and time efficiencies that translate into higher yields for Investors, even before the application of the 12J tax incentives.
We are an impact fund that builds environmentally using green methods, and delivers social impact through job creation and providing desirable purpose built housing for Students.
Capitale Wealth Partners acts as Fund manager and is owner-managed by a Team with specialist skills and experience, who take an active investment approach to deliver Investor results. We apply a stringent investment criterion to our Fund mandate, both in the selection and management of investments.
Capitale Student Housing Fund Ltd | An Authorised Financial Services Provider FSP 48985
Impact investing provides our Investors with an ethical approach to building a high-performance portfolio.
Investing in Student housing is an excellent way to align with the aspirations of rising generations, up-lifting student lives in purpose built accommodation that speaks to their true needs.
We support the construction evolution to innovations like green buildings, sustainable materials and waste reduction - delivering real environmental benefits.
The sensibility of Mid-century modular architecture is finally being adopted as a keystone of modern architecture.
We support Modular construction solutions versus traditional methods, which delivers numerous cost efficiencies - shorter build times, reduced build costs, energy efficiencies and reduced operating expenses.
The Fund has partnered with Dwell Modular Systems who have extensive experience and ensure quality execution. This enables us to underwrite the capital outlay as well as the delivery times, which are critical in student housing.
Treasury amended Section 12J of the Income Tax Act to stimulate the local economy and create jobs by providing SME’s access to private equity funding. South African Taxpayers who invest in registered Venture capital Companies (VCC) receive a tax incentive of 100% tax deduction on monies invested, achieving an immediate return of 28 % for companies and 45% for individuals, on the invested amount.
A Section 12J VCC is a company which has been registered as a Financial Service Provider (FSP) with the Financial Sector Conduct Authority (FSCA) and been approved by the South African Revenue Service.
Tax deduction illustration:
Individual / Trusts Corporates
Initial Investment R 1 000 000 R 1 000 000
Tax Relief (in year of initial Investment) R 450 000 * R 280 000
Net investment (risk capital) R 550 000 R 720 000
*Assumes individual is in the highest tax bracket
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