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Rental Pool System
Park Avenue is making available to
purchasers, a rental pool scheme specifically designed to
attract the executive and conference centre requirements in the
surrounding Gateway Office Park areas. It is also designed to
link into the overseas executive letting systems, which will
result in high occupancies over the holiday period, whilst the
conference centre and business centre have may quietened.
Attached is a calculation of expected yields in respect of this
pool, based on very conservative occupancy levels of 65% and 70%
and daily rentals to be achieved in 2007 on the apartment. In
these calculations a limited capital appreciation of property of
10% per annum has been used which result in extremely attractive
return on equity on the apartments.
Purchasers who enter into the rental pool agreement will have
will a claim of input tax of 14% on the purchase price from SARS
submitted by Park Avenue for the purpose of furnishing the
apartments to executive hotel standards.
Park Avenue will handle all the administration relating to the
project and has entered into negotiations with a leading
international hotel group to operate and manage the pool on our
behalf thereby motivating the achievement of projected occupancy
levels.
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