The Section 12J Fund is a SARS-approved Venture Capital Company (VCC) that offers South African tax-paying individuals, companies, and project developers an attractive structure to incentivize investors to invest in their investment opportunity (like Evaton Diggz) and to potentially enhance their returns through a Section 12J tax incentive.


This initiative aims to incentivising South African taxpayers to invest in the local economy, via a tax deduction on the investment amount, provided the investment is made into an approved Section 12J Venture Capital Company (Section 12J VCC).

The benefit to the investor for making the investment in a Section 12J VCC is a return on the investor’s full investment and a tax deduction on the amount invested. The Section 12J Fund will thus invest in Sectional title Purpose Built Student Accommodation (PBSA) Units in Evaton Diggz, Evaton West. The developer and the Financial guarantor is Synergy Property Development. For more information, please refer to https://www.synergydevelopments.co.za/



Invests into The Section 12J Fund into a unique share class linked to the Evaton Diggz Student Development.


Tax benefits obtained on the subscription of new Shares in a SARS-approved S12J venture capital Company.


The Section 12J Fund (VCC) invests in the qualifying company which will purchase PBSA units in the Evaton Diggz Development.


The Section 12J Fund will hold ownership of the PBSA units in Evaton Diggz through the Qualifying Company (Synergy property Developments).


The investor (if investing R1 000,000 or more) takes transfer of the property after 5 year or a Share buyback by Synergy Developments.

  • The entrepreneur or project developer will present their opportunity to the directors of the Section 12J Fund.
  • Once approved, the entrepreneur or project developer will reach out to their network and identify investors interested in investing in their opportunity.
  •  Once investors have been identified, they will invest into the Section 12J Fund.
  • The Section 12J Fund will then issue the investors with a specific class of ring-fenced shares.
  • This specific class of ring-fenced shares will entitle the investors to receive all the economic benefits associated with their investment. In other words, all dividends and capital growth flowing from the investment will flow only to the shareholders of that class of share.
  • The shares issued to the investors will entitle/enable them to reduce their taxable income by the full amount invested in accordance with Section 12J.
  • The Section 12J Fund will then invest the funds in the entrepreneur’s or project developer’s specific investment opportunity
  • The Section 12J Fund’s directors assist the entrepreneur and the investors through every step of the process.