Deal Structuring
KDH's approach
Investing Companies - KDH
will typically take up to a 50% share in the portfolio company
and the remaining shares will be taken up by investors. We
prefer to limit the number of shareholders to 5, simplifying
shareholder communication and decision making.
KDH receives requests for participation in projects from various institutions and private investors and preference is given on a first come first serve basis. Unfortunately the time constraints in a typical property purchase agreement necessitates rapid decision making (usually within 30 days).
Participation Process
Once an application of interest is received, the participation process in our realestate investments will proceed according to the following four steps:-
Step 1
KDH will immediately supply a detailed business plan to the prospective Investor in electronic format.
Step 2
When a positive confirmation of interest is received, all the required legal paperwork will be forwarded for signature.
Step 3
Upon receipt of the signed documentation the Investor will be contacted by KDH's Auditors ( PricewaterhouseCoopers ) and the agreed investment amount will be transferred by the investor to an interest bearing trust account held by PWC for this purpose. The funds will be held in trust until the property purchase or construction agreements becomes effective (usually within 30 - 60 days). In the unlikely event that the project is prematurely terminated, the investor will be refunded by PWC inclusive of any interest earned.
Step 4
The investment and shareholders agreements will then become effective and share certificates will be issued to the investors.
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