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 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 and has maintained a positive cash flow position throughout the Covid-19 pandemic. We currently have our strongest ever forward bookings with 2022 and 2023 shaping up to be our biggest years on record. Due to limited availability our guests are now commonly needing to book 1-2 years in advance to make a reservation, 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!

Owners becoming involved can expect increased returns on investment compared to what’s previously been distributed prior to the onset of the Covid-19 pandemic. Apart from the distributions made to unitholders over the years, surplus profits are also continually reinvested to expand and improve the resort facilities, generating steady capital growth over time.

The Resort has recently expanded its accommodation facilities which we expect will result in increased earnings yet to be factored into the current valuation of USD 5 Mil, also in consideration that the resort now has more than two years worth of future bookings and customers are now paying the full price to visit in 2022, otherwise they must book more than a year ahead to qualify for an early bird discount.

Aside from the financial returns, the owners and their families get to enjoy two weeks of visitation entitlements annually, per each USD 50,000 investment, staying in one of four newly built family-sized deluxe suites. This provides savings of USD 7,000 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 if they prefer to do so.

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 staff, many of whom have become like family, and also getting to know members of the local community, and making life long 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 becoming an owner. This is a rare and very unique lifestyle investment opportunity. If you are already booked to visit at the retail rates, then for a limited time only, the trustee is allowing new owners to transfer their booking payments to be at the owners rates, just paying USD 50/night per family member for meals and upkeep, and additional credit can also be used for onsite purchases also receiving a 30% discount applicable to the owners. Once the currently available positions are filled, this allowance may no longer be available.

Did you know that the owners and our families get to stay at Macaronis Resort for free for 2 weeks every year?

That’s right, we no longer need to pay to stay in one of our 16 guest suites receiving just a 20% discount off the retail rates (applicable between 2012 – 2020), but instead, we now get to stay for free for 2 weeks every year in one of our 4 newly built family-sized suites; 2 of which are built especially for the owners, while the other 2 are rented out to families at a premium.

We expect rentals of the other 2 family suites will more than offset the ongoing maintenance costs of our 2 family suites built especially for the owners. We made an executive decision in 2019 to build our own accommodation villa comprising of 2 family suites, as demand for our 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’s no maintenance or body corporate fees applicable and we only need to pay USD 50/night per family member to cover basic costs such as meals, fuel for boats and generators, and room cleaning. We also receive a 30% discount off all other cost items including transfers, local purchases and additional accommodation nights applicable to the room and individual guest packages.

And now perhaps you think it surely can’t get better than this?

Well think again, because we’ve not only saved thousands per year on accommodation, while enjoying handsome returns averaging 5% over the past 5 years before the pandemic; but revenue and profits are now growing significantly. While occupancy was down during the Covid-19 pandemic, we’ve continued trading while most operators were closed. This has provided a unique marketing opportunity and we’re now booked solidly for the next 2 years with limited availability and unprecedented demand from guests willing to pay a premium. Our cash reserves are growing quickly from new clients booking and from the collection of balance payments of guests already booked.

By now 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 50K investment. This buys 1% ownership at the current valuation of USD 5 Mil, and a lifetime 2 weeks annual visitation entitlements with zero ongoing maintenance costs.

While many other businesses and real estate have appreciated significantly during the pandemic, MR’s valuation of USD 5 Mil has remained steady since mid 2019. Therefore, we consider this to be a very attractive valuation, also considering Macaronis Resort is one of the world’s leading and iconic surf resorts that has shown proven resilience even in the most difficult of times.

So perhaps your wondering, why is this offer available now?

Good question, the business does not need your capital. In fact, the business has maintained positive cash flow during the Covid-19 pandemic, has expanded its accommodation facilities, and our forward sales are pointing toward record profits ahead.

This opportunity has come about because some of our owners have now retired and no longer plan to visit, and therefore a minority are willing to offer this unique opportunity to the right person to enjoy the unique benefits of becoming involved as an owner.

These positions become available from time to time, when somebody makes an application to sell, and this is a vast minority of our current owners. Once the available spots are filled, this offer will no longer be available, and 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 access to our private web page which has complete information about investing.

a.) You need to fill in and submit the application form at the bottom of this page to request 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 the original investment documents to the address of the buyer to complete the transaction and the delivery of the original investment documents to the buyer.

The video below introduces the trustee of Silabu Unit Trust Dr Eghardt Brand. The clips that follow show a 3D plan of our new family-sized deluxe suites; 2 of which are prioritized for the owners and their families; and 2 of which are being rented out as premium accommodation to our guests. The clip showing off our family suites is followed by some of the epic surf sessions we’ve scored over the years in the Southern Mentawai Islands.

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

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