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Development funding and distributions
Distinguishing capital used for development from income generated by the business.
Uses and flows of funds
Development
After opening
Sale & liquidation
| Item | Approach |
|---|---|
| Development expenditure | Allocate funds to land or rights acquisition, studies, design, permits, site works, construction, equipment, contingency, opening preparations and necessary expenses. Define the amounts and scope before an offering. |
| Expenditure controls | Reconcile fund-management accounts, the project budget, contracts, invoices, progress, remaining cost to complete, contingency and expenditure approvals. The scope and conditions of fund protection are defined by the legal structure and contracts. |
| During development | Subscriptions and borrowings are not operating income. Regular distributions during development are not assumed. Unrealised valuation gains and new subscriptions are not used as a source of income distributions. |
| After opening | Assess distributions on the basis of actual hospitality income after operating expenses, taxes, required debt service, maintenance reserves and vehicle expenses, under the contract and in proportion to units with the same ranking. |
| Sale and liquidation | Deduct liabilities, taxes, costs, reserves and other required amounts from actual disposal proceeds, then distribute the remainder according to the contractual ranking and allocation terms. |
| Stay Credit | An optional feature under consideration once post-opening services and confirmed distributions are in place. It is not guaranteed from development funds. Keep service balances separate from investment interests. |
Distribution principles
The proposed distribution approach is based on actual receipts and necessary costs, debt service, remaining cost to complete and reserves. Unrealised valuation gains are not treated as cash income. Frequency and allocation terms would be defined in the project contract.
Capital, fees and service balances
Distinguish contributed capital, development and management fees, operating expenses, confirmed distributions, return of capital and stay-related service balances. Disclose recipients, calculation bases, cost allocation and the treatment of tax, transfer fees and foreign exchange before an offering. If Stay Credit is introduced, an amount converted into credit is not also received in cash; $MARV unit holdings are intended to remain unchanged.
MARAVION Realty Token · 2026.10.28