The Syndicate
Incorrect access word
Strictly private and confidential

Acquiring The Syndicate sets three things in motion. The 50 000 EUR artwork purchase transfers ownership of the physical diptych. It simultaneously opens the right to subscribe 1% of TB RAK INVEST SAS at nominal par value, 100 EUR. That subscription in turn activates the right to enter the Obligation Convertible en Actions, a convertible bond under French law, through which the Collector lends 200 000 EUR to the company at 10% annual interest over six years. Three transactions, one instrument, one sequence.

Per founding instrument

The instrument.
In full.

50 000 EUR TTC Artwork acquisition
47 393 HT + 5.5% VAT
100 EUR 1% equity subscribed
at nominal par value
200 000 EUR Convertible bond (Obligation Convertible en Actions - OCA)
10% interest · 6 years
10 - 15% Annual return OCA yield + equity dividend
on 250 100 EUR total
1
Sign
Master Protocol signed while TB RAK INVEST SAS is en cours de formation. The artwork is the pre-incorporation founders pact.
2
Wire
50 000 EUR to LB Art Studio SAS for the diptych. 100 EUR to incorporation escrow for 1% equity at nominal par. Two separate transactions.
3
Incorporation
Kbis issued. TB RAK INVEST SAS corporate account opens. The artwork has dictated the timeline of the company's creation.
4
OCA
TB RAK INVEST SAS issues the Obligation Convertible en Actions (OCA). Founder wires 200 000 EUR. The obligation is active. The debt performance begins.
Pool, terrace, and Atlas-facing architecture, Tigmi
The collateral · Tigmi 7 000 m² · 30 keys · Al Haouz
Collateral

The asset behind the instrument.

The OCA is backed by a real asset with a measurable value. Not a promise. Not a projection. A hotel, two pools, a hammam, a gallery, a restaurant, and 7 000 m² of land at the foot of the Atlas, acquired and transformed for 3 200 000 EUR.

Valuation method Basis Implied value
Replacement cost 3 200 000 EUR × 1.35 premium 4 320 000 EUR minimum
Per key · Al Haouz market 150 000 – 300 000 EUR × 30 keys 4 500 000 – 9 000 000 EUR
OCA coverage ratio 2 000 000 EUR in obligations on conservative asset values 2.2× – 4.5×

Kasbah Dif sits 300 metres from the site. Recent market references place it at 4 to 5 million EUR. We acquire and transform Tigmi for 3 200 000 EUR.

The obligation is not carried by narrative. It is carried by keys, pools, and land you can walk through. At conservative marks, the asset covers the debt two times over, and then some. Collateral · TB RAK INVEST SAS
For corporate acquirers

The diptych on your boardroom wall is a depreciating asset. The yield is 10%.

VAT recovery

LB Art Studio SAS is the primary producer of the diptych. As of January 2025, all primary sales of original contemporary artworks by artist studios in France carry a flat reduced VAT rate of 5.5% on the total price. Corporate acquirers registered for VAT in Belgium, Germany, or the Netherlands recover 2 606 EUR on acquisition.

Corporate amortisation

In Belgium and Germany, acquiring original art through a corporate entity and displaying it in a professional space allows the company to amortise the purchase price against corporate tax over a set period. The diptych is a depreciating asset on your balance sheet, paying 10% annual yield while it depreciates. Confirm the applicable schedule with your tax counsel.

Artwork price (HT) 47 393.36 EUR
VAT at 5.5% 2 606.64 EUR
Artwork price (TTC) 50 000.00 EUR

VAT recoverability and amortisation eligibility depend on jurisdiction and corporate structure. Confirm with your tax counsel before acquisition. This is not tax advice.