Investment in Macaronis Resort via Silabu Unit Trust

Investment in Macaronis Resort via Silabu Unit Trust provides unique lifestyle benefits as well as becoming an ordinary shareholder with equal entitlements to the income and assets of Macaronis Resort and taking part in the long term capital growth of the business.

Below we have answered some common questions about investing in Macaronis Resort. If you are interested in becoming an owner and would like to know more, you can submit the application form at the bottom of this page and we’ll be in touch.

The assets of Macaronis Resort are held in a privately held trust known as Silabu Unit Trust established in year 2004. The person responsible for safeguarding the trust and its assets and distributing the annual income in accordance with the trust deed is Dr Eghardt Brand, a specialist medical doctor, practicing in both the UK and Namibia where he holds dual citizenship.

Dr Brand is a member of the Surfing Doctors, he is a philanthropist having his own non-profit foundation, and he is also head of our non-profit organization, ‘The Pagai Foundation’. Dr Brand was our first and largest investor following a tsunami which damaged Macaronis Resort in year 2010. Dr Brand was directly responsible for having financed a large portion of the refurbishments completed at that time.

Dr Brand donates his time and services as head of the Pagai Foundation to recruit international doctors who assist in carrying out medical clinics in the surrounding villages and manages programs including the removal of cataracts to restore eyesight to local villagers who otherwise would not have access to medical services. In 2019 the Pagai Foundation in partnership Padang Eye Clinic cured blindness for 13 local Silabu Villagers.

Dr Brand and his partner Hayley Brand are also keen scuba divers and are qualified PADI diver instructors. Hayley Brand is also a qualified marine biologist with an interest in coral reef conservation, which is also one of the many initiatives of the Pagai Foundation.

Macaronis Resort remains debt-free after maintaining a positive cash flow position throughout the Covid-19 pandemic. Since April, 2022, the business has flourished, consistently hosting more than double the occupancy compared to pre-pandemic levels. As at December 31st, 2023, the resort had 1,353 future weekly bookings, which represents being booked one year in advance hosting on average 30 guests per week. Year 2024 is again shaping up to be our biggest year on record. Due to limited availability, our guests now need to book 12 months in advance to be assured of availability, which is a very unique and advantageous position to be in, as we can now put more of our focus, time, and energy into looking after our guests! Macaronis Resort is fully Indonesian managed which our guests greatly appreciate and this has numerous advantages at the operational level as well.

The trustee aims to distribute 5% of Market Cap annually, which provides owners with a cash return of 5% in year 1 of involvement, and as the business continues to grow, the owners receive a higher percentage return on their investment each year. Surplus profits of approximately USD 150 – 200k are reinvested back into the business each year to expand and improve the resort’s facilities and services, generating steady capital growth over time.

There have been numerous improvements made over the years that have supported continued capital growth. In 2019 we switched to selling our packages in USD from the declining AUD, as well as adjusting our pricing strategy and implementing an online bookings system. We also switched to using the Mentawai Fast Ferry instead of using the slow overnight ferries, and we began using our new aluminum high-speed Catamaran instead of relying on wooden longboats. In 2019 we also built a new medical clinic and doctor’s accommodation quarters, new dry and recreational equipment stores, made kitchen and laundry expansions, and we built a new staff canteen. In 2019 the trustee also completed a 3% buyback of unitholder equity.

During the Covid-19 pandemic in 2020-2021, we expanded our accommodation to include two duplex villas comprising 4 family-sized deluxe suites, and in 2022-2023 we built a new gym and yoga gazebo and two premier deluxe suites with adjoined rooms (making 22 rooms in total), perfect for larger families and offering more privacy. During our 4 weeks maintenance closure in Nov/Dec 2023, important improvements were made including constructing a new large poolside gazebo dining area, a new front entrance jetty with floating pontoon, and Surfalot was repowered with twin 300 Hp outboard engines. We also paid a deposit on a 50 passenger aluminum Catamaran with dimensions 12.8M X 4.8M, built in 2017, and powered by 4 x 250hp Suzuki outboard engines (used only 100 hours). This vessel was secured at a fire sale price of less than 25% of the original construction cost, that will further enhance our already impressive boat fleet and eliminate reliance on hired speed boats whenever the Mentawai Fast ferry is cancelled.

Since global travel and tourism was suppressed by the Covid-19 pandemic, all of the improvements made prior to, during, and after the Covid-19 pandemic are now being realized allowing us to host double the occupancy and being booked a year in advance. Being fully Indonesian managed, customer feedback remains outstanding averaging 4.8 stars both in our internal customer surveys with 579 responses and on Google with 176 responses. Currently, we’re experiencing unprecedented demand with record sales and increased profitability that is expected to deliver growing returns for owners over the coming years.

Future planned developments include a zinc alum logistics storage facility that will include a solar power renewable energy system installed on the rooftop to reduce our reliance on diesel generators by 50% (night time only) expected to provide a 3 year pay back, as well as construction of a skate park/bowl for recreation and surf coaching purposes, and rehabilitation of the lagoon shoreline in readiness for a future expansion.

This chart shows the historical valuation of ordinary units based on transactions that have occurred over time. Beyond December 2023 is a conservative estimate based on current financial performance. In 2023 Silabu Unit Trust had an annual equity turnover of approximately 25% providing liquidity for the owners trading with one another, and from new owners becoming involved. It is expected that with some elderly owners gradually selling down their equity positions, this may further boost the valuation of ordinary units due to there being a shortage of positions available except if paying a premium.

Aside from the attractive financial returns, the owners and their families get to enjoy one week of complimentary visitation entitlements annually, per each USD 40,000 investment, staying in one of four new family-sized deluxe suites. This provides savings of approx. USD 4,000 annually for a family of four and no management or body corporate fees apply. If not visiting, unitholders can elect to sell their visitation entitlements to make an additional return on their investment. Unitholders may also trade visitation entitlements, for example, two unitholders owning a minimum investment parcel may make an arrangement to each visit for 2 weeks every 2 years, instead of visiting for 1 week annually.

Investment in Macaronis Resort is via a privately held trust, open by invitation only, and subject to approval by the trustee. Most often it is our regular guests that become owners, and it is preferred that all future owners share the same passion for visiting Macaronis Resort which enables the owners to contribute in unitholder meetings when discussing future developments and the progress of the business.

Owners enjoy getting to know our wonderful Indonesian staff, many of whom have become like family, and also getting to know members of the local community, and making lifelong friendships with other regular guests that often visit at the same time while surfing some of the most incredible waves in existence. This along with many of the other wonderful experiences is what makes Macaronis Resort such a special place to so many.

We believe that having owners involved who share the same passion for Macaronis Resort and enjoy visiting frequently best serves the long-term interests of the business and this will help to preserve the unique experience for many years to come.

If you enjoy visiting Macaronis Resort, then you may want to consider applying to become an owner. This is a rare and very unique lifestyle investment opportunity.

Did you know that per minimum USD 40k investment, the owners and our families get to stay at Macaronis Resort for free for 1 week every year?

That’s right, we the owners no longer need to pay to stay in one of our 16 twin share suites receiving only a 20% discount off the retail rates to visit (applicable between 2012 – 2019), but instead, we now get to stay for free for 1 week every year in one of our 4 newly built family-sized deluxe suites; 2 of which are built especially for the owners, while the other 2 are rented out to families at a premium. We also have recently completed building two adjoined premier deluxe suites in a separate villa alongside the family suites which are suitable to be used by larger families as well as being rented out individually.

Income from rentals of the two family suites sold to guests more than offsets the maintenance costs of our 2 family suites built especially for the owners. The owners made an executive decision in the 2019 annual unitholder meeting to build our own accommodation villa comprising two family suites to be funded by earnings, as demand for the resort’s twin share suites is regularly at full capacity, and we all love visiting just as much as our guests do!

And at the end of the day, we really appreciate the fact that there are no maintenance or body corporate fees applicable and we and our families only need to pay USD 50/night to cover basic costs such as meals, fuel for boats and generators, and room cleaning.

Perhaps you’re thinking, surely it can’t get better than this?

Well, think again, because not only do we save thousands per year on accommodation, while enjoying handsome returns and capital growth of our investment, but we and our families also receive a 30% discount off all other purchases including additional nights of accommodation (applicable to the room and guest’s package), bar purchases, merchandise, and resort transfers. It’s also an added bonus to be able to bring along friends who only need to pay the non-surfer rate when sharing our accommodation, saving them USD 100/night plus not having to pay for a room. Or if bringing along a group of friends who have never visited before, the business even offers us to pass on a friendly 10% discount, or we can earn a 10% commission for referring them as new guests!

Perhaps you’re thinking this investment is just for the super-rich?

Well, believe it or not, the deal just described is for a mere USD 40K investment. This buys 0.5% equity ownership with a lifetime 1-week of annual visitation entitlements which have zero ongoing maintenance costs. A new owner can expect a cash return of 5% in year one, which increases over time as the resort increases in value from growing earnings each year and from surplus profits continually being reinvested to make improvements and expansions.

So perhaps you’re wondering, why is this offer available now?

Good question, the business does not need your capital. In fact, over the past decade the business has remained debt free, now maintaining strong cash reserves to allow us to put aside annual distributions for the owners well in advance, as well as making continued improvements. As we are nearing being fully booked in 2024, while hosting double the occupancy of pre-pandemic levels, we’re expecting this strong financial performance to continue.

This opportunity has come about because some of our owners are aged in their 60’s and 70’s and can no longer visit the resort due to health reasons, and therefore, a minority are willing to offer this unique opportunity to the right person and their family to enjoy the unique lifestyle benefits of becoming an owner in Macaronis Resort.

These positions are rare and only become available from time to time when an existing owner decides to sell. Once the available positions are filled, then this offer will no longer be available, and, likely, the same deal may never be available again.

If you think this opportunity might be for you, then get in touch and we can give you an update on the current availability, and subject to certain conditions, the trustee can provide a login to access our private web page which has complete information about investing to become an owner in Macaronis Resort.

a.) You need to fill in and submit the application form at the bottom of this page to apply to be given access to our private web page which contains all of the information about investing.

b.) On deciding to invest, and subject to a position being available, you’ll need to fill in and sign a unit transfer application form with the trustee who represents the Seller, after the Seller has surrendered their unit certificate to the trustee allowing a transfer to proceed.

c.) After the unit transfer application form has been signed by the parties, the buyer can choose to transfer the full payment, or first pay a 10% deposit, to the bank account stipulated on the unit transfer application form.

d.) On receipt of the full payment, or a 10% deposit, the trustee shall then execute the trust deed with the buyer that will be delivered electronically by email to the buyer and the buyer then needs to make the balance payment (if applicable). On receipt of the full payment the trustee will then issue the unit certificate to the buyer stipulating the distinctive numbers of the ordinary units being subscribed.

e.) The trustee will then post by courier mail the original investment documents to the address of the buyer to complete the transaction.

The video below introduces the trustee of Silabu Unit Trust Dr. Eghardt Brand and the clip that follows provides a virtual tour of the owners’ accommodation duplex suites. Please enquire to request a username and password to access our private web page

Please note that applications are accepted subject to meeting certain prerequisites on a first-in, first-served basis. If no ownership positions are available at the time of your enquiry we can add you to our waitlist and you will be notified upon a position becoming available. We look forward to hearing from you!

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