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The recent launch of units at Upper East Side in Salt River through a Section 12J fund, opens the door to a new investment opportunity that could earn you a 100% tax deduction

Flyt Property Investment has partnered with JSE-listed Real Estate Investment Trust, Spear Reit Limited to offer property investors direct ownership in The Upper East Side mixed use precinct in Salt River. This opportunity gives investors a guaranteed rental yield as well as a tax rebate through the Section 12J fund. Up-and-coming Salt River and Woodstock are among Cape Town’s most vibrant neighbourhoods. Just 10 minutes from Cape Town’s CBD, these suburbs are strewn with cool craft breweries, hip eateries and cafés, and trendy boutiques, art galleries and interior design studios.

The Upper East Side hotel on Brickfield Road, Salt River, forms part of a mixed-use development that includes residential apartments, office space with co-working options, a retail section, as well as restaurants and bars. The Flyt team has negotiated an attractive opportunity for their investors: not only would they buy into The Upper East Side via the Flyt Select Fund, facilitating an income tax rebate of as much as 45% via SARS‘ tax incentive known as Section 12J, they will also enjoy a five-year guaranteed return of 7.5% (after all property related expenses). The first three years are underpinned by a head lease with Spear Reit Limited, whereas years four and five are guaranteed by Anuva Investments. The units will be fully managed by Multi Rooms Management. Owners will also benefit from seven days’ own use of their unit at up to 30% discount on accommodation rates throughout the year.

Upper East Side

Offering a substantial tax break, the Flyt Select Fund, managed by Section 12J leaders Anuva Investments, has proved especially popular with investors thanks to its finance facility. Speaking to investors during an online launch, fund manager Ryan Flowers explained, “Investors are able to select specific units in the development and receive up to 95% funding. The tax-efficient structure allows investors to use their SARS tax refund towards the purchase of their investment and then assists in financing the balance – essentially, investors get up to 45% back.”

No time like the present

According to Spear Reit Group CEO Quintin Rossi, the transaction gives investors a rare chance to enter the hospitality sector by investing on a secured income return basis. The Section 12J tax incentive expires on 30 June 2021, so interested parties have until then to invest via the structure and claim their tax certificates. There are 183 studio and one bedroom sectional title units available at Upper East Side, all fully furnished and serviced. Prices range from R734,000 for a studio hotel room to R3,5m for the largest loft apartment suites.


Darryn van der Poel | 083 258 6316 |
Justin van der Poel | 076 095 2846 |

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