Izak and Rita van der Merwe started the closed VDMV Private Equity Fund in 2003. He recognised the long-term potential of commercial and industrial property as a supplementary retirement and passive-income generator. Izak approached family, friends and professional acquaintances to co-invest into property, which provide investors with the opportunity to gain from the dynamic growth of commercial and industrial property.
Properties in Montague Gardens, Stikland, Brackenfell Industrial and Okavango Industrial Park in the Western Cape and Isando, Spartan Aeroport and Linbro Business Park in Gauteng were carefully chosen as prime investments. This would increase the value of the portfolio and enhance returns.
The rental income of properties increases annually, income surpluses are applied to redeem loans to banks and investors, and the capital value of these buildings appreciates as the rental income increases. The result is capital appreciation with a passive income that exceeds inflation.
The Private Equity Fund’s board of non-executive directors consists of a management and advisory team with comprehensive commercial property investment and accountancy experience who ensure transparency for all shareholders. And the fund is owned and controlled separate from VDMV Property Holdings.