Dunkin’ Donuts opens doors for the rich

Dunkin’ Donuts opens doors for the rich

SOUTH Africa looks likely to lose more millionaires as wealthy South Africans can now get a green card if they investin Dunkin’ Donuts restaurants in the US.
Private equity investment firm LCR Capital this week said South Africans with $500000 (R6.75 million) could obtain a green card for themselves and their families to the US, through the US Citizenship and Immigration Services administered EB5 investor visa programme. South Africa faces a slowing economy and social problems created by high unemployment levels, which have led to high crime levels. According to the South Africa 2016 Wealth Report by New World Wealth, there were a 38 500 highnetworth individuals living in South Africa, with a.combined wealth of $159 billion at the end of last year. However, South Africa’s number of highnetworth individuals decreased 10 percent during the period between 2007 and last year as those individuals left the country.

The depreciation of the rand against the dollar, falling equity markets and the migration of a significant number of highnetworth individuals out of the country had lowered the number of such people, according to the report. The US EB5 programme may lead to the loss of more millionaires from South African shores. The investment, which must be for a minimum of five years, after which it is redeemed with interest, was in the form of a limited partnership investment that would provide senior secured loans to partially finance the construction of new fastfood Dunkin’ Donuts restaurants in the US. LCR Capital recently opened an office in Cape Town. It is based in Westport, Connecticut and has offices in Sao Paulo and Shanghai. Parade Investments in January Dunkin’ Donuts operates in 36 countries and plans to launch in Cape Town and Johannesburg later this year. Dunkin’ follows other USbased fastfood chains’ expansion to the South African market after Starbucks, Krispy Kreme and Burger King. Van der Merwe said almost 99 percent of EB5 visa applications administered by the firm had been approved by US authorities.

“The biggest thing the American government are concerned about is the source of the funds how a person got the money not illegally they don’t look at the language you speak, age restriction or your cultural background,” he said. About 10 000 EB5s are made available a year globally by the US government.

Van der Merwe said last year there were 26 people who applied for EB5 and were accepted from South Africa. After applying and following the process, applicants have to wait 10 to 15 months to get their EB5 visa. Once approved non US citizens received temporary

US green cards within 12 to 18 months and permanent green cards five years later. “If investors are considering permanent residency in the US, it is advised to apply and get started on the EB5 application process before the $500000 amount changes,” he said. Dunkin’ Donuts opens doors for the rich Thabisile Mbele and Philippa Larkin Lack of treaties Douglas van der Merwe, LCR Capital’s local representative, said: “The US immigration system has traditionally not been an ideal fit for South African businessmen and investors who want to relocate to the US.

“Many countries have investment treaties that enable their nationals to obtain treaty investor visa status and immigrate to the US based upon their investments. South Africa does not. Fortunately there is a solution for wealthy South Africans in the form of the EB5,” he said.

Dunkin’ Brands is set to tap into South Africa’s sweet tooth after signing a 10year exclusive licence agreement with Cape Townbased gaming and leisure group Grand Wealthy South Africans will be able to get a US green card for themselves and their families through a $500000 investment in Dunkin Donuts as part of the US Citizenship and Immigration Services administered EB5 investor visa.

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