Pin Oak Capital is an independent, bespoke asset management firm that specialises in providing unique equity-linked hedge fund solutions to ins�tu�onal investors and high net-worth individuals. The cornerstone of our business is absolute investment return generation with a predictable return profile. We pride ourselves on being able to offer our clients specialised top-�er mul�-arbitrage based hedge fund strategies with consistent, predictable return profiles. By using proven in-house proprietary financial models and strategies, our team of well-respected local and interna�onal por�olio managers are able to leverage their experience and skill sets to iden�fy unique global investment opportuni�es and consistently deliver superior risk adjusted returns for our investors. Our mul�-decade experience has provided us with deep and unrivalled knowledge that allows us to create pragma�c solu�ons for our clients. As an independent company we are fully invested in our brand and only strive for the best returns and service for our clients. We build por�olios that can do more than grow your money. The Pin Oak / Belvedere Leisure Resorts plc (“BLR”) Strategy By creating a core investment strategy comprising a diversified basket of low- risk, capital-protected instruments from toptier global banks, we are able to achieve the highest possible returns in USD, GBP and EUR which ensures annual rates of return which are greater than high street banks are able to offer. Using the Core Portfolio as collateral, additional funding is secured for allocation to the BLR Property Strategy, which in turn further enables annual returns on the capital invested to be enhanced. The two strategies combine to provide an investment opportunity that presents low levels of investment risk and the ability to achieve above- inflation returns over a 5 year investment horizon. ACTIVELY MANAGED CERTIFICATE (“AMC”) on Landal Belvedere & Structured Note Targeted Return Strategy F A C T S A N D F I G U R E S +27 11 568 4461 | [email protected] | www.pinoakcap.co.za ISIN Currency US Dollars Management fee 1.00% per annum 0.50% 1.50% per annum Administra�on fee Total fee Minimum Investment Amount Minimum Investment Term Issue Price USD 1,000 Custodian/Broker EFG Bank AG, Switzerland Paying Agent InCore Bank AG (PA), Switzerland Strategy Manager Pin Oak Capital Issuer Eurydice PCC Limited CH1237092031 Fees Liquidity | Limited and Subject to management discre�on prior to ini�al 42 month term $50,000 42 months
The core income portfolio is aimed at achieving annual rates of income which are payable quarterly, semi-annually or annually which are 2% - 3% higher than money market instruments and high street bank savings products can offer. The portfolio invests in a basket of structured products such as credit linked notes, income notes and other instruments issued by top tier US, UK and European banks. The portfolio only invests in fully capital protected instruments always ensuring capital preservation. Full liquidity is available on a daily basis. However, investors should have a 3 -5 year investment horizon when investing in the portfolio mandate. The BLR corporate strategy is focused on the UK domes�c tourism & stayca�ons market. BLR’s resorts are operated by Europe’s leading vaca�on rentals organisa�on, Landal GreenParks (“Landal”) who are part of the Awaze Group with brands such as Hoseasons, Novasol, Co�ages UK and James Villas. Landal, established in 1954, currently generates over 10m bookings each year. The rental income streams generated by the Group’s global marke�ng reach creates high yields for the resort owner, sustaining profitability of up to 35% per annum. This rental income is highly sought a�er and valued by financial ins�tu�ons and pension funds who are ac�ve in this sector, acquiring domes�c resorts at mul�ples of 15x EBITDA and above. BLR retains ownership of all land & property while Landal manage & market the holiday resorts, fully aligned through a long-term, revenue-share contract. This results in a high, ongoing level of liquidity and enables the BLR programme to become self-financing, given the capital value of the income exceeds the value of the proper�es that produce the income. This process allows BLR to enhance the coupons payable to the investors into the Core Income Por�olio and repay the Lombard Loans at least 6 months prior to the end of the investment term. C O R E I N C OM E P O R T F O L I O B L R C O R P O R AT E S T R AT E G Y This Product (hereina�er, also “Cer�ficate”, “Note” or “AMC”) is an Ac�vely Managed Cer�ficate. The Product allows for par�cipa�on in the performance of the Underlying (the "Strategy"). The Strategy reflects a no�onal ac�vely managed por�olio of assets and cash, maintained by the manager (the “Strategy-Manager”). The performance of the Strategy is tracked via the calcula�on of the Strategy Level. The holders of the Product (hereina�er, “Holders of the Product”, “Holders of the Cer�ficate” or “Note Holders”) have exposure to the same performance a real por�olio would have, if it was actually managed according to the Strategy. However, the Holders of the Product will not be en�tled to real assets in a real por�olio and have only a claim against the Issuer on the payment of the Redemp�on Amount based on the Strategy-Level at the Final Valua�on Date. D E S C R I P T I O N The Underlying is a basket represen�ng a no�onal, ac�vely managed por�olio (the “Reference Por�olio”) of assets including cash in the Currency of the Product (the "Strategy-Components"). The basket is selected and managed by the Strategy Manager in accordance with this termsheet (“Termsheet”), the "Investment Strategy” referred to here below as well as the investment universe (the “Investment Universe”), the guidelines (the “Strategy-Guidelines”) and the investment restric�ons (the “Investment Restric�ons”), as per Annex 1. U N D E R LY I N G +27 11 568 4461 | [email protected] | www.pinoakcap.co.za
The Investment objec�ve to achieve long term capital growth and yield by inves�ng in a basket of fully capital protected and par�ally protected structured products. Issuers will be various top �er global banks. The AMC will have varied parameters to achieve high levels of capital preserva�on and high probability of coupon genera�on which distribute on an Annual, semi-annual or quarterly basis. Furthermore, the objec�ve of the AMC is to secure leveraging off the basket of notes to invest into the Landal Belvedere fixed income bond issuance with has a fixed annual coupon of 6,25%. I N V E S TM E N T S T R AT E G Y The Strategy-Components are selected, adjusted and rebalanced by the Strategy-Manager in accordance with the following guidelines (the "Strategy-Guidelines"): 1. Structured Products will be selected according to the following criterias: • Capital protec�on barrier range: Full capital protec�on as well as par�al protec�on with a minimum capital barrier of -30% IE 70% barriers • Coupon barrier range: Guaranteed coupons, 50% - 90% barrier range for non-guaranteed coupons • Tenor: Minimum 1 year, maximum 5 years • Autocall allowed: Yes • Autocall level: 80% - 120% • Callables allowed: Yes • Issuing banks: S&P AAA - BBB rated banks 2. Leveraging allowed up to max LTV of 60% of the NAV of the AMC to be allocated to the Landal Belvedere Bond issuance. S T R AT E G Y G U I D E L I N E S +27 11 568 4461 | [email protected] | www.pinoakcap.co.za H OW I T W O R K S Core Income Portfolio ($1’000’000) Capital Protected Instrument 1: 4,7% Capital Protected Instrument 2: 5,2% Capital Protected Instrument 3: 5,4% Capital Protected Instrument 4: 4,6% Capital Protected Instrument 5: 5,8% BLR Property Strategy BLR deploys the liquidity into the BLR opera�on and enhances the coupon payable to the investor. Key Takeaways: • Guaranteed Coupon: 4% - 6% • Capital Protected • Liquidity available to BLR: $500,000 • LGP enhances the coupon by 3.125% per annum. • BLR repays the loan 6 months before the end of the investment term. Overall Return Example: Return of capital at the end of the investment term $1m Annual coupon payable: Core Income Por�olio 5.000% LGP Property Strategy 3.125% Total return to investor (pa) 8.125% This section provides an example of how the combined investment strategies work based on an investment of $1,000,000. *The above is for illustra�on purposes only and is subject to change
+27 11 568 4461 | [email protected] | www.pinoakcap.co.za Belvedere Leisure Resorts plc have launched a UK asset backed fixed income bond on the Weiner Borse MTF on the Vienna Stock Exchange giving a 6.25% coupon per annum to raise a total amount of £100million. The bond issue is a new product in this market and this investment sector is lucra�ve, genera�ng a high yield return to the investor. The capital raised by the lis�ng of the bond is primarily targeted to be invested in land that the plc own through acquisi�on & JV arrangements to develop a range of luxury holiday resorts to be managed on a long term basis by Landal GreenParks, one of Europe’s leading holiday resort operators with over 100 loca�ons in 9 countries. This is set to be the first UK purpose built Landal GreenParks resort and the first in the UK to be managed by the holiday giant. The first site in development, Landal Barnsoul, opened in the UK in Q4 2022 with the first part of phase one comprising of 40 lodges plus recep�on with the second part of phase one to then include more facili�es and lodges in line with Landal GreenParks’ requirements. Landal will be responsible for all bookings, occupancy and management of the resort and revenues are shared between both par�es in line with the long term marke�ng and management services agreement which is legally in force. Bookings are now being taken and can be accessed via visi�ng Landal’s website: www.landal.co.uk/uk/landal-barnsoul-soul Belvedere Leisure Resorts plc (BLR) has listed to raise a minimum of £100m to acquire and develop sites within the UK which will then be operated exclusively by Landal GreenParks (“LGP”) who are a long-standing, well-established, mul�-award winning holiday resort operator and des�na�on brand with over 100 loca�ons across 9 countries in the UK/Europe and a key part of the Awaze Group of Companies - Europe’s leading vaca�on rentals organisa�on and home to specialist self-catering brands such as Hoseasons, Co�ages.com, James Villas and Novasol. The Group accommodates more than 8m holidaymakers each year and offers more than 110,000 places to stay in 36 countries. Belvedere Leisure Resorts plc (BLR) D I S C L A IM E R Pin Oak Capital (Pty) Ltd “Pin Oak” is an authorised financial services provider (FSP No: 51368) in terms of the Financial Advisory and Intermediary Services Act (Act No. 37 of 2002) and is incorporated and registered under the law of South Africa. Pin Oak does not provide any guarantee with respect to the capital or return of the por�olio. Investors should take cognisance of the fact that there are risks involved in buying or selling any financial products. Past performance of a financial product is not necessarily indica�ve of future performance. The value of financial products can increase as well as decrease over �me, depending on the value of the underlying securi�es and market condi�ons. Illustra�ons, forecasts or hypothe�cal data are not guaranteed and are provided for illustra�ve purposes only. This document does not cons�tute a solicita�on, invita�on or investment recommenda�on. Prior to selec�ng a financial product or fund, it is recommended that investors seek specialised financial, legal and tax advice. The laws of the Republic of South Africa shall govern any claim rela�ng to or arising from the contents of this document. None of the par�es contained herein own a financial interest in the other, either directly or indirectly.