P&L projections, waterfall, budget, and per-instrument yield.
The returns
Transparent by design.
The instrument produces two distinct income streams over two distinct time horizons. The OCA interest is fixed debt service, paid before everything else. The equity dividend is variable, modest in the early years, and perpetual. The numbers below are projections based on conservative assumptions. They are not guarantees.
20 000EUR / year · FixedOCA interest on 200 000 EUR face value at 10%. Paid as financial charge before any waterfall distribution. Years 1 to 6 maximum.
6 100 → 13 500EUR / year · GrowingEquity dividend on 1% shareholding. Variable. Grows from Year 1 to Year 5 as hotel stabilises. Continues in perpetuity after OCA repayment.
10.4 → 13.4%Annual return · Years 1 to 5Combined OCA interest and equity dividend on 250 100 EUR total commitment. Return grows as occupancy and ADR increase year on year.
The transformation · materialsTadelakt · cedar · zellige · brassFive-year P&L · 30 keys · Meals included · ADR 400 to 455 EUR · Occupancy 60 to 75%
Line
Y1
Y2
Y3
Y4
Y5
Revenue
Accommodation, meals included
2 628 000
3 025 000
3 373 000
3 597 000
3 737 000
Bar & wine
176 000
203 000
226 000
241 000
250 000
Spa, retreats, privatisations
152 000
175 000
196 000
209 000
217 000
Total revenue
2 956 000
3 403 000
3 794 000
4 047 000
4 204 000
Operating costs
HR, 35 FTE
470 000
470 000
470 000
470 000
470 000
Food & beverage
137 000
157 000
175 000
187 000
194 000
Operational charges
350 000
350 000
350 000
350 000
350 000
Marketing & distribution, 10%
296 000
340 000
379 000
405 000
420 000
TB Management Fee, 7.5%
222 000
255 000
285 000
304 000
315 000
GOP
1 482 000
1 830 000
2 135 000
2 331 000
2 454 000
TB Incentive Fee, 15% GOP
222 000
275 000
320 000
350 000
368 000
Result before financial charges
1 260 000
1 556 000
1 815 000
1 982 000
2 086 000
Financial charges, above waterfall
OCA interest, 10 × 20 000 EUR
200 000
200 000
200 000
200 000
200 000
Bank annuity, 500K / 5% / 7 years
86 000
86 000
86 000
86 000
86 000
Net result, waterfall base
974 000
1 270 000
1 529 000
1 696 000
1 800 000
Reserve build, 500 000 EUR over 3 years
Annual reserve allocation
167 000
167 000
166 000
-
-
Distributable result
807 000
1 103 000
1 363 000
1 696 000
1 800 000
Waterfall on distributable result
Fondation Tagadirt · 10%
81 000
110 000
136 000
170 000
180 000
Growth Fund TB Maroc · 15%
121 000
165 000
204 000
254 000
270 000
Residual for equity distribution
605 000
828 000
1 023 000
1 272 000
1 350 000
Founders, 10% of residual
61 000
83 000
102 000
127 000
135 000
Per founding instrument · 1% equity
What each instrument produces, year by year.
The OCA interest of 20 000 EUR per year is fixed and paid before any waterfall distribution. It is debt service, not a dividend. It is not subject to hotel performance.
The equity dividend of 1% of the founders' collective 10% share grows from 6 100 EUR in Year 1 to 13 500 EUR in Year 5. Combined annual return rises from 10.4% to 13.4% on the 250 100 EUR total commitment.
By end of Year 5 each founder has received 100 000 EUR in OCA interest and 51 000 EUR in cumulative equity dividends: 151 000 EUR total, before OCA repayment.
Year
OCA interest
Equity div.
Total
Return %
Y1
20 000
6 100
26 100
10.4%
Y2
20 000
8 300
28 300
11.3%
Y3
20 000
10 200
30 200
12.1%
Y4
20 000
12 700
32 700
13.1%
Y5
20 000
13 500
33 500
13.4%
Cumul. Y1-Y5
100 000
51 000
151 000
Distribution order · contractual
1
OCA Interest · financial charge, above all distributions200 000 EUR paid annually to the 10 founders as interest on their obligations. 20 000 EUR per instrument. Paid before any waterfall layer. Not contingent on distributable result.
200 000EUR / year · Fixed
2
Cash reserve · 500 000 EUR built over 3 years167 000 EUR per year set aside in Years 1, 2, and 3 before any equity distribution. Minimum standing reserve of 500 000 EUR maintained from Year 4 onwards. Protects operations and OCA interest payments.
500 000EUR · Funded Y3
3
Fondation Tagadirt · 10% of distributable resultTen percent of net distributable result allocated to the Fondation Tagadirt. Funds the restoration and development of public spaces, common infrastructure, and shared amenities in Douar Tagadirt and the surrounding territory. Contractual and irrevocable.
10%Of distributable
4
Growth Fund TB Maroc · 15% of distributable resultFifteen percent of net distributable result allocated to the Growth Fund TB Maroc. Acquires abandoned and demolished houses in Douar Tagadirt, rebuilds them from scratch at hotel suite standard, and adds them to the operated room pool. Capital stays in Al Haouz.
15%Of distributable
5
Equity distribution · 10% founders, 90% LBResidual distributed proportional to shareholding. Founders collectively hold 10%, each founder holds 1%. LB holds 90% and carries full operational risk and management responsibility. No distribution to LB until OCA interest is paid in full.
10%Founders' share
The accommodationStandard 40 m² · suite 55 m² · pool suite 70 m²
Two massage cabins, full zellige floor and walls, stone table
Rooftop terrace, Atlas view
30 000
Cedar daybeds, stone floor, discreet guardrail
Subtotal common areas
300 000
Infrastructure & autonomy, 132 000 EUR
Water tank 60m³ + triplex pumping station
25 000
Operational priority, existing well insufficient alone
Micro-STEP grey water recycling
25 000
Garden irrigation, fresh water prohibited by Moroccan regulation
Solar photovoltaic + full solar hot water
60 000
Partial energy autonomy, complete hot water autonomy
Technical audit + minor remediation
10 000
Pre-acquisition structural audit, major flaws trigger renegotiation
Networks, exterior lighting, stone paths
12 000
Subtotal infrastructure
132 000
Gardens & pools, 90 500 EUR
Central garden, plantations, stone paths, ground lighting
60 000
Olive, pomegranate, lavender, rosemary, local palette supervised by LB
Two main pools, technical upgrade only
20 000
Filtration, heating, lighting, safety · zellige redesign deferred to opex
Garden contingency
10 500
Subtotal gardens & pools
90 500
FF&E + contingency, 335 000 EUR
Furniture, rooms and common areas
240 000
8 000 EUR / key · cedar, linen, brass · local artisans supervised by LB
Linen and room equipment
15 000
Natural undyed linen · Toile Blanche standard
General contingency
80 000
Renovation overruns, supplier delays, unforeseen works
Subtotal FF&E + contingency
335 000
Launch, 100 000 EUR
Alcohol licence + legal + CNSS registration
50 000
Nominative manager licence, Wilaya dossier, social registration
Working capital
50 000
Reconstituted by operating revenues Q1-Q2 · pre-opening leveraged via Toile Blanche France
Subtotal launch
100 000
Total renovation + launch
1 600 000
Total project
3 200 000
Funding stack
OCA proceeds, 10 × 200 000 EUR
2 000 000
LB contribution, artwork proceeds + cash
400 000
343 000 EUR net artwork proceeds after IS + 57 000 EUR cash · LB co-invests alongside founders
Bank loan, conditional · 5% / 7 years
500 000
GO SIYAHA grant, conditional
300 000
Total funding
3 200 000
The long view
The OCA closes. The equity does not.
From Year 3 onwards Leroy Brothers hold the right to repay the 200 000 EUR obligation and end the debt performance. When they do, the Collector receives their capital back and the annual interest stops. What remains is the 1% equity stake in an operating institution, paying dividends every year for as long as the institution exists. The founding instrument number on Panel II does not expire. Neither does the equity.
In the event of an asset sale
The Founders collectively participate in 10% of any sale proceeds proportional to their shareholding. On a 5 000 000 EUR transaction that is 50 000 EUR per instrument. No sale is planned or guaranteed. LB holds 90% of the equity and controls any such decision.
