Ten Year Comparison With Other Investments
We have compared our Parktonian Sectional Title Hotel investment with alternative property and hotel investments over the 10 year period 2007 to 2016 during which our Sectional Title scheme has been operational.
The methodology was:
- We took the average price paid for a Parktonian Sectional Title unit in 2006 / 2007, which was R442 000 per unit.
- We took the estimated value of a Parktonian Sectional Title unit 10 years later as R600 000. This was based on the highest prices achieved in actual sales, which were R600 000. This is a 36% increase in capital value over 10 years, or 3.6% p.a.
- To the annual capital value increase of 3.6% p.a. (see 2 above), we added the cumulative annual income distributed to Parktonian Sectional Title owners over the 10 years which totalled R468 220 per unit.
- We then charted the Parktonian units versus R442 000 invested 10 years ago in various alternative types of property and other investment in South Africa. This chart is as follows:
- We then also charted the Parktonian units versus R442 000 invested 10 years ago in certain other hotel investments in South Africa.This chart is as follows:
The other SA hotel investments were charted on the following basis:
- The dividend amounts were derived from the companies’ financial statements.
- The dividend return was obtained by dividing the dividend amounts by the share price at year end.
- The share prices were as published for each year end.
- Please note that the dividends paid were after company tax paid by City Lodge and Tsogo Sun, but before dividend tax, if any, in the hands of the investor.
The above analysis shows that an investment in a Parktonian Sectional Title Hotel unit has done well when compared to most other property and hotel investments.
In addition to the above returns it should be noted that during the 10 year period being reviewed, the Parktonian hotel built, out of its operating income, its new Skylevel facilities and also added additional restaurant and conferencing areas at ground level. These facilities add to the potential income earning and capital growth prospects for the next 10 years.
We believe that this explains why many of our existing investors feel that our units offer the best property investment available. They feel that these units offer good monthly income plus capital growth. Moreover, there is a hotel management company in place that takes care of all the administration, marketing and sales, repairs and maintenance, etc., leaving the investor with a hassle-free hotel suite investment.