Socially Responsible Property Investment Opportunity (IRR: ~25+% PA)

Disclaimer

Present review has been based on available documents and written with the intention of giving a comprehensive introduction. However, it shall not be deemed as an official offer—it is solely for information purposes.

Short Summary

Socially responsible 2–5+-year property investment opportunity with estimated IRR of ~25.00+% (guaranteed nominal minimum: 8.46% PA)

This investment is FOR YOU if you…

- think bank deposits don’t provide satisfactory returns;
- like the idea of having tangible assets at the core of your investment;
- prefer to obtain outstanding returns even if the exact investment period and rates of return cannot be exactly specified upfront or
- want to invest for a fixed term of 2, 3 or 4 years at a guaranteed 8.46% annual nominal interest rate;
- think social justice and sustainability are important factors in investing.

This investment is NOT FOR YOU if you…

- are satisfied with returns offered by bank deposits;
- prefer speculative investments to investing in hard assets;
- wish to invest for a term shorter than 2 years;
- do want to have outstanding returns but with a fixed investment period;
- don’t think investments are supposed to be concerned about social justice and sustainability.

Major Characteristics

Currency: British Pound (Euro, American Dollar, Swiss Franc)
Investment Minimum: 10.5 thousand Pounds (or equivalent)
Investment Optimum: multiples of 58.5 thousand Pounds (to be paid later, in years 2–4)
Investment Period: ~2–5+ years
Return: varied or guaranteed; estimated @ 25.00+% per annum (guaranteed nominal minimum: 8.46% PA)
Opportunity Type: to be subscribed
Selling before maturity: fixed exit strategies after years 2, 3 or 4

Analysis

The development company is offering an exclusive sales contract to market over one million square meters of land in a project which is going to become one of the foremost logistical and business hubs in Southern Europe.

Investors can purchase 1000 m2 of industrial land in the first phase of the business and technology park for the pre-launch price of GBP 58,500. The property investment and the returns can also be made in Euro, US Dollar and Swiss Franc.

You will only be required to invest GBP 10,500 (or the equivalent in Euro, US Dollar and Swiss Franc) and asked to commit to either a 2-, 3- or 4-year exit option. During years 2 to 4 definitive planning will be achieved and you will have two options, the first option is to complete, pay the balance on your plot and receive the title deed. The second option will be to execute your automatic buy-back where you will receive your capital invested plus profit on the completion of the pre-agreed exit option.

The development company has secured a charge against the land which will then be assigned to the investor against their investment. Based on extensive price comparisons, the potential value upon completion of infrastructure will be EUR 154.00/m2.

Some of the factors which ensure that this development will be a major success:

- Unequalled communication links and a unique location within Europe
- Due to its innovative concept, it is an important alternative for economical growth in the area
- Unique logistical solution on the intersection of two main European Freight Transportation Systems
- Demand for industrial land and prices have remained stable during the recession
- Social justification — creation of more than 4000 jobs
- It has been declared by both local and regional authorities as being a priority project within the territorial strategy

In summary this opportunity offers:

- Small capital outlay
- No requirement to complete
- No further costs, if exiting in year 2, 3 or 4
- A secure investment
- Optional exit strategies which are fully managed by the development company
- Minimum, secured returns of 8.46% per annum
- Larger plot investments which offer higher returns
- Multi purchase of plots

Please, email me for a full brochure on the details.

Strengths

Duration and Return

Basically there are two investment options in this offer.

Option one:

…is to pay a down payment (GBP 10,500/plot) now to lock in a future purchase price (GBP 58,500/plot) for the land and then pay the balance (GBP 48,000/plot) and receive the title deed when definitive planning has been approved (expected to happen sometime around years 2–4). In this case the land can be either kept as an industrial property or resold for receiving investment profit. Conservative comparative assessment shows that the piece of land will be worth at least around EUR 154,000 (GBP ~129,100 @ today’s exchange rate).

This scenario has a great profit potential—one that is hard to generalize in numbers, though. For illustration purposes let’s consider two possible outcomes.

In the first case definitive planning for the project is carried out at the earliest expected time—at the end of year 2. The investor resells the plot at the minimum expected nominal market value (EUR 154.00/m2) at the end of year 5. They invested GBP 10,500 now, GBP 48,000 after two years and receive around GBP 129,100 in five years. This case produces a 25.93% IRR (internal rate of return; per annum).

In the second case definitive planning for the project is carried out at a later expected time—at the end of year 4. The investor resells the plot at a market value calculated with a 3.00% increase per annum (e.g. inflation) at the end of year 6 (EUR 183.90/m2). They invested GBP 10,500 now, GBP 48,000 after four years and receive around GBP 154,200 in six years. This case provides a 35.76% IRR (internal rate of return; per annum).

Option two:

…is to invest only the initial amount of GBP 10,500/plot, make the decision on the preferred investment period (2, 3 or 4 years), and exercise the corresponding automatic buyback option offered by the development company with a comfortable annual return of 8.46% (nominal interest rate) for the selected period or until definitive planning is approved (whichever comes first).

Strategic Location

The land is located in an area which is fast becoming a point of strategic importance for the whole of Europe.

The current widening of the Suez Canal will mean that all large shipping on the commercial routes from Asia will be able to sail directly in to the Mediterranean and deliver at ports thereof. Important note: currently these ships have to sail all the way round Africa, adding 8900 km and 40 percent more time, to deliver at ports such as Rotterdam and Hamburg. The land is within one hour’s drive from one of the top three ports in the Mediterranean.

There is immediate motorway access to the location. Even the freight rail system in the Ferrmed Project (approved last year by the European Union) will pass through it. It is on an influential intersection of current and future European corridors for mass transportation of freight merchandise. These communication links are unequalled in Europe today.

Innovation

The blend of high-tech automated logistical businesses and innovative concepts unequalled in the country along with top quality services will make this a business and technology park like no other.

All this combined will attract a certain level of client. The caché that will come with this complex will bring businesses who, not only want the strategic location, but also the image of being different. With such different concepts in the project, such as The Marine Technology Park and the type of clients which are expected, there will also be an element of magnetism for other smaller companies who strive to be different, or indeed see the massive potential of being part of a complete complex dedicated to one or more specific specialist sectors.

Social Justification

The successful inclusion of the key factors mentioned above has allowed the development company to create a very high quality eco-model which is completely sustainable and has an incredible social impact creating more than 4000 jobs.

For these reasons, the project has been declared of priority and strategic importance within the area by both local and regional government.

Partnership

The site was purchased over three years ago and during this time it has undergone exhaustive studies by more than 36 professionals in different fields. This synergy of a strategic communication intersection, a location which is unique and an innovative complex which is unequalled in Europe, has been studied and proven by this world class professional team. Everything from environmental impact and water confederation to economic feasibility and socio-economic justification has been proven.

The entire team is world class—some of the world’s leading professionals—and this is an underlying guarantee which will ensure that it will be one of the most important Avant-garde projects in Europe in the coming years.

The Project was officially approved by the municipal Planning Committee and included in their New Town Plan in June 2010.

Risks and Weaknesses

Currency Exchange Rate

As future property sales will be effected in Euros, there is no risk associated with currency exchange rates if investment is made in Euros. If, however, investment is made in any other currency (including the default currency, GBP), the final gain for the investor will be affected by the future currency exchange rate.

Three outcomes are possible: either the rate remains practically the same or the currency will either strengthen or weaken against the Euro. In our case if the currency strengthens against the Euro, financial gains in the currency decrease. If the currency weakens against the Euro, gains in the currency increase.

Price Collapse

If investors wish to obtain outstanding returns they will hold the land and resell it later. It is obvious that if the land price collapses, they will not be bale to make the desired profit.

However, investors will be able to get out of their investment through the pre-agreed exit strategies if land prices seem to take an inconvenient direction before definitive planning or their chosen period of 2, 3 or 4 years ends.

It is also a promising sign that industrial land prices in the country have not been negatively affected by the global financial crisis in the past two years.

Liquidation

The land is owned by the development company. Investors are protected against adverse consequences of an incidental liquidation of the company’s by a mortgage charge on the land.

Liquidity

With pre-agreed exit strategies at the end of years 2, 3 or 4 and the ability to sell the property any time after definitive planning has been approved, this investment can be considered to have fair liquidity. The development company will provide sales center services for investors who intend to sell their plots.

Contact

If you would like to invest in and/or need further details about the above property investment opportunity, please, don’t hesitate to contact me by email.

http://go.wisenvst.com/prp001