Fairtree Capital Hospitality (Pty) Ltd (the “Company”) is managed by Fairtree Capital. The Company focusses on leveraged acquisitions of a diversified portfolio of hospitality properties with positive cash flows and significant capital appreciation potential which are positioned to benefit from the growth in the South African tourism industry.

The Company’s focus will be in the hotel industry, where various opportunities exist given supply constraints, a weak South African currency and strong growth in the tourism market. The company managers use their expertise, in association with its hotel management affiliates, to reposition and restructure properties for growth and to capitalise on the changing accommodation market. The Company will develop its investments into efficiently structured real estate investments, which operate at optimum capacity and then look to realise these investments at maximum value. The Company’s primary focus area is South Africa with some international exposure.

Fairtree Capital Hospitality will invest in companies operating in the hospitality industry with the following features:

  • Exciting and proven business models
  • Potential for expansion or capacity growth
  • Defensible market positions
  • Attractive entry prices
  • Opportunities to add value

BACKGROUND

Section 12J of the Income Tax Act was created specifically to encourage taxpayers to invest in small and medium sized enterprises in the Republic of South Africa. Taxpayers who invest in a registered Venture Capital Company (VCC) are entitled to a 100% tax deduction on monies invested, thereby achieving an immediate return of up to 45% for individuals, 45% for trusts, and 28% for companies (being the reduction in marginal taxes payable) on their investment.

EXPERIENCED INVESTMENT TEAM
TAX SAVINGS
GROWING TOURISM INDUSTRY