FAQ's Multistar Premier Pool Investment

Who Should Invest?

  • Individuals, Trusts and Corporates looking for an enhanced dollar return.

Why should I invest in tank containers?

  • You should invest if you wish to diversify your existing portfolio with hard dollar based assets that will earn an income yield far higher than banking deposit rates.
  • Have a hedge against world stock market volatility.

What am I investing in?

  • You are investing in international hard assets used by an industry, which has been successful for over 50 years and is still growing at over 5% per annum.
  • Through this asset you are securing dollar based income which is paid quarterly and is guaranteed for the first ten years.
  • An unlimited opportunity to convert your rands to dollars and protect against what has historically been a depreciating currency.

Why invest through Multistar?

  • Multistar together with the Reserve Bank initiated tank container investment for individuals 34 years ago.
  • We and our subsidiaries are end to end users so there is no leasing company between your investment and the end user. Other leasing companies typically charge the investors between 15% to 20% in fees, which are eliminated from our holistic investment.
  • We enter into back to back agreements with our operating company and offer a 10% guaranteed dollar return on your initial investment for the first 10 years.
  • All maintenance and repairs are carried out by the operating company and there are no charges made for the first 10 years to the investor.
  • All insurance is also paid by the operating company so again no dilution of your income.
  • You need have no concerns that your tank container will lie idle during that 10 year period as it will be on lease and earning every day, through a back to back 10 year lease.
  • The price we charge investors for the tank is the price we pay the manufacturer as our business is not to make profits on sale but rather to run an international operations organization.

What are the benefits of investing in tank containers?

  • In the case of an individual, unlimited Dollar based income that with the approval of the South African Reserve Bank can be paid out anywhere in the world.
  • Tax allowances that increase the effectiveness of the investment.
  • Hedging against a depreciating rand.
  • Investing in an international hard asset that is environmentally friendly.

Am I legally entitled to invest in tank containers.

  • The investment has the full approval of the South African Reserve Bank and the South African Revenue service.
  • The approvals have stood the test of time, being initiated by Multistar some 34 years ago.
  • The investment does not form part of your offshore allowance so SARS clearance is not required.

What is the Price of a Tank Container?

  • Multistar places long term orders with the manufacturer and obtains the best price possible for the investor due to the volumes we purchase.
  • Currently our price is $21,000 which would be converted to rand at the ruling exchange rate on the date of purchase by the investor.
  • There are no additional charges for transport or positioning.

What is the expected life of a tank container?

  • With correct maintenance in excess of 20 years prior to remanufacture or selling as static storage units or scrap.

What will I earn on my investment?

  • For the first ten years the guaranteed return is 10% per annum on the dollar purchase price of the tank.
  • The return is net of all charges.
  • After the first ten years the tank will become part of the ordinary Multistar Pool and will earn a market related income, that should be above the initial ten year income.
  • As investors are guaranteed a ten year return, any danger of market fluctuation is removed for that initial ten year period.

Can I keep my income offshore?

  • In 1997 the South African Reserve Bank changed its policy and permitted individual investors to retain the quarterly income offshore.
  • There is no limit to the amount that may be retained offshore and at the request of the investor Multistar will arrange payment into foreign bank accounts.
  • As the income is maintained in dollars this is the currency we would remit to the offshore account.

What are the Tax advantages of the investment.

  • Current tax legislation permits a wear and tear allowance to be claimed of 10% per annum of the cost of the tank to be claimed against the income generated from the tank container.

How can I be sure my container exists?

  • A container is allocated 3 different numbers, a manufacturers number, a lease managers number and an international certification number from an independent certification authority such as Lloyds or Bureau Veritas.
  • You will receive a certificate of ownership and a copy of the independent authority certification.

Who manages my container?

  • Multistar will manage the container and attend to the quarterly payments to be made in terms of your instructions.
  • Multistar will enter into a back to back management agreement with the operating company for a period of ten years so as to ensure your continuity of income.

Who maintains my tank container?

  • The operating company for the first ten years is responsible for the maintenance of your tank at no cost to yourself.
  • Thereafter the investor pool will be responsible for the maintenance.
  • Tank containers have a strict maintenance regime in terms of international regulations.
    • Certification by an independent international certification body such as Lloyds or Bureau Veritas is required every 2.5 years which costs for the first ten years will be paid by the operating company.

Is my tank container insured?

  • Should you tank container be damaged your income stream will not be affected and you will continue to earn a quarterly income.

When can I expect my income?

  • Income is paid quarterly in arrears 15 days after the quarter ends.
  • 90 days are allocated to move the tank container from the manufacturer to its first point of lease and you will receive you first income approximately 9 months from date of purchase.
  • Payment dates are:
    • 15 January
    • 15 April
    • 15 July
    • 15 November

Is my investment marketable?

  • In our 34 years of marketing the investment we have had no difficulties of finding buyers for those investors who wish to dispose of their tank containers.
  • The new investor would benefit from a tank container that is already earning a quarterly income and because of the guaranteed income it would be an attractive investment proposition.

What happens at the end of the tank containers useful life?

  • Tank containers have a useful life in excess of twenty years.
  • At the end of their useful life the investor has two options:
    1. Sell the container as a static storage unit or for the scrap value of the stainless steel which is a valuable commodity and is most of the mass of the tank container or
    2. Have the tank container remanufactured at their cost which is approximately 50% of the price of a new container and which will give another 15 plus years of useful life to the unit.