Clarion Hotel, Dublin - Rental Income Tax Shelter 2008
Status: Next Phase being launched

Investor Benefits

• Unit Purchase Price €495,000
• Investor Equity required €49,500 (10%)
• 5%* net rental yield guaranteed for 7 years
• 93% tax relief available
• €213,235 tax saving over 7 years
• 100% Buyback guarantee after 7 years
• 80% Bank Finance in place
• 10% interest free developer loan available
• Ideal for someone with €50,000 or more of rental income exposure
• Hotel already operational and profitable
• Rental Bond in place to cover shortfalls

Prime Wealth Management is delighted to announce the release of its latest strong covenant, asset backed tax incentive investment opportunity. Having worked closely with the Clarion Group over the past 3 years, Prime has now created an new innovative structure that provides low equity entry, financing and guaranteed annual income. This, combined with a clear, guaranteed exit mechanism ensures that the benefits of this investment are not influenced by any unforeseen movement in the property market and leaves investors in full control.

The four star Clarion, Liffey Valley Hotel opened in December 2004 with the Corporate Suites opening in 2006. The Hotel provides 350 beds, over 20,000 sq. ft. of leisure facilities including pool, gym, Jacuzzi, steam rooms etc, restaurant, themed bar and 13 conference rooms. The hotel is already profitable and is now expanding its corporate suites accommodation. Prime Wealth Management has put together a strong advisory team to assist clients including, CBRE, Bank of Scotland, LK Shields Solicitors and Farrell Grant Sparks who acted as tax advisors.

In order to lower the equity required by our clients, Prime has arranged with the developer to part fund the purchase price together with 80% bank financing, which is in place. This arrangement does not impact on the excellent capital allowances and reliefs available to the investor. Effectively, the investor will invest just €49,500 to have the ability to offset €458,571 of Rental Income over the 7 year period. The unit is bought back by the developer at the full purchase price (net of the repayment of the developer's loan) at the end of year 7. The Investment is cash positive from year 2.

In addition to the above capital allowances, interest relief is also available on any borrowings used by an investor to purchase a suite in this transaction, thus ensuring that the guaranteed rent is tax neutral. The rental guarantee is strengthened by the inclusion of a rental bond of €24,750 which is put in place by the developer at closing. In addition, the buyback mechanism at the end of year seven gives investors a clear exit strategy from the transaction. The buyback is guaranteed by the developer personally who has a very strong diversified high net worth.

Call us today for our detailed investment memorandum.

* Rental yield is calculated as 5% of the effective purchase price after deducting the interest free loan offered by the developer.