The rationale behind the Rihlat Properties platform is that there are often properties on auction or group disposals of a property portfolio where a fund such as ours can purchase excellent properties at relatively large discounts because of the nature of the reasons behind the auction or group disposal.

Rihlat Properties will focus on the “scalping purchase method” where we will focus on buying strategically positioned properties with quality tenants at a discount to prevailing market value which will enhance the yield pick-up of the Partnership

The Partnership’s mandate will be as follows:
• Maximum exposure to one single property: R100million
• Maximum payment terms for tenants: 30 days
•Profit share: minimum net 10% income yield and capital growth.

The investment product is based on a 12-month lock in period, but the investor will be allowed to sell, exit or trade in their partnership portfolio within a special window of two weeks allocated by Rihlat every year after 12 months.

The investment from the investor will have the following criteria and expected returns:
• Lock in period: 12 months
• Withdrawal notice: 4 months after 12 months period
• Minimum investment: R50 000
• Expected profit returns: 10-13% plus capital growth.

Rihlat will distribute the profits to the investors based on the trading profits on a monthly basis.