Summary

Introduction
Wine Estate Capital Management (WECM) has developed a new investment concept in Wine Estates. Investors become co-owner of a carefully selected wine estate. The good timing of the purchase, the professional selection and due diligence of the Wine Estate and the partnership with industry known experts are all ingredients which make the investment financially very promising. Investors who become co-owner of a WECM Chateau project also profit from other financial and non-financial rewards. Investors can spend weekends and holidays at the Chateau and can be active on the technical and commercial side of the business. The daily general management of the Chateau lies in the hands of WECM, who also remains co-owner of the estate. WECM will grow the value of the wine estate by focusing on improved wine quality and by means of successful international sales.

WECM also provides management services for wine estates of other owners and can also acts as advisor for wine estate transactions.

Investment
The wine estates will be purchased by a maximum of 20 shareholders. The minimum shareholding is 5% and depending on the wine estate project, the minimum investment will be around EUR 100.000.

Return on investment
The expected return on the investments made is on average 15% before individual taxation. This ROI (return on investment) reflects the time value of money and is in this sense an Internal Rate of Return (IRR) of the project. The guaranteed annual return to the shareholders is 6%.

Legal structure & governance
The investors become shareholder of an Investment company, which will own the Chateau / Wine Estate. This proven chosen structure has fiscal benefits as well as risk management advantages. (e.g. tax exemption on income from daughter companies and in most cases no tax on dividend paid out). The most important decision making board is the annual meeting of shareholders. The investment company has strict rules and regulations with regard to corporate governance and to a fair distribution of the benefits to all shareholders (e.g. holiday weeks at the Chateau).

Duration
There is no minimum duration attached to the investment. Investors who want to sell their investment can do so at any time but must offer the shares first to the remaining shareholders. WECM will support the sale of the shares to a new shareholder.

Unique
The investment is a unique combination of security (safe investment in real estate), financial return and lifestyle.

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