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The Strategy The Fund The Omnibus Property Fund invests primarily in four types of real estate sectors; Residential, Commercial, Special Projects and Rentals. The primary investment focus is on property developments where the Fund assists to finance a project and develop it into a turn–key property with a buyer and/or tenant already identified. In certain circumstances, the Fund may retain and manage the property, where market conditions and overall returns are favorable for investors. The Fund will identify, develop, execute and manage different property developments in strategically selected euro-zone countries. The Fund provides a unique opportunity for investors to participate in the pre-secured property development margins. Luxembourg Domiciled Luxembourg, a founding member of the European Union has a stable political and social environment and a strong economy. Luxembourg leads the way in investor protection and is the largest European fund domicile and the second largest fund centre in world, (US being ranked 1 st ) with over 2,400 billion EUR in assets under management. SICAV SIF – AIFMD regulated A SICAV SIF is an Luxembourg investment fund fully regulated by the “Commission de Surveillance du Secteur Financier (CSSF)” created in February 2007 via the Special Investment Funds law. A SIF offers a fully regulated investment structure that is flexible, efficient and tax optimized. AIFMD regulated property fund
The Fund Fund Structure and Governance The Fund will be managed by its Board of Directors (the “Board”) in conjunction with the Investment Advisory Team (“Investment Advisor”). The Investment Advisor will be responsible for sourcing real estate investments through various specialised property advisers and making investment recommendations to the Board. The Board will examine proposals made by the Investment Advisor and will carefully review these proposals to make its decisions in accordance with the Investment Policy of the Fund. A three stage due diligence process will be applied to each project in order to guarantee that investment capital is invested wisely. Management Expertise The Fund’s management group has the experience and the financial strength to source and manage complex property transactions, projects, acquisitions and provide intensive on-going monitoring for each project. The Board of Directors and the Investment Advisor have an existing relationship with well-established real estate companies and property experts. The investment advisor utilises the services of a team of property experts that have unique industry contacts, that can provide access to off - market property projects. The investment advisor will engage the most suitable team of experts for each project type and location. Investment Process The investment process starts with the definition of the investment opportunities by the Investment Advisor within its current pipeline of projects. After first stage due diligence , which is carried out by the investment advisor and its property experts , the project is submitted to the Fund Board of Directors. The Board of Directors will carry out the second stage of the due diligence and evaluate the investment and will after an approval send full due diligence for each specific proposed project to the Fund’s custodian bank . The custodian bank will then apply its own due diligence process within the Luxembourg regulations. Only when this extensive 3 stage due diligence process has been completed can the fund enter into investment within a specific property project. AIFMD regulated property fund
The Fund Portfolio Diversification In order to ensure sufficient risk diversification, investments will be spread over several assets, processes, projects and companies in different countries and property sectors. The portfolio diversification will meet the strict criteria detailed within the regulatory rules of the CSSF regulator in Luxembourg. The number of investments within the Portfolio will vary at the discretion of the Fund Board of Directors . The Investment Advisor which will be continuously looking for prime property opportunities and may therefore buy or sell assets according to the Fund ‘s objectives and Investment Policy. The investment strategy will commence investment within the Swedish property market, where the fund has identified excellent investment opportunities and has arranged a panel of property industry experts to maximise investment returns. As the fund increases in size, it will source and arrange additional property transactions across Europe, utilising the services of top tier property experts, in conjunction with the same strict due diligence process. Why Sweden? Swedish property law protects the interests of all parties – investors, creditors, tenants and the public. It strikes a good balance between security, reliability, transparency and cost-efficiency. It is well suited for cross-border real estate investments. Sweden is considered one of the safest place to invest in properties. The underlying economy is strong and the demand for property housing/projects is very strong. The supply is also insufficient due to limited construction of housing for the last decade. The Swedish property market is very liquid and well regulated . Sweden is one of the most transparent countries in the world with a low level of corruption. All these characteristics suggests that Sweden, and in particular Stockholm, offers a good risk/return ratio and is a suitable area for the fund to commence its trading activity. AIFMD regulated property fund
Why Sweden? The Swedish Housing Market Macro Economy - Sweden The Swedish economy grew by 2.1% in 2014, still a strong growth in comparison with other European countries. The growth is mainly driven by domestic demand as well as investments into residential development schemes across the country. Forecast indicates an expected growth of just over 2.5% for 2015 and 2016. Outcome for inflation level is expected to remain low. Other macro-economic figures are moving in a positive direction: unemployment is decreasing; employed workforce is increasing, bankruptcy rates drops. Household savings ratios remain high, and consumer spending has picked up. The major prediction from national and international institutions is that Sweden will outperform in Europe in the short and medium term. The recent cuts of the repo rate along with QE measures from the Bank of Sweden indicates that Sweden is likely to be in a low interest rate climate in the short term and most forecasters do not expect interest rates hikes until 2017. It is therefore likely that the amount of equity targeting property will continue to increase and bank financing is also readily available at attractive rates. Climate for investments in real estate The transaction turnover amounted to SEK 25bn for the first quarter 2015, close to historical high volumes despite a small drop compared to same period 2014. The intensive activity on the real estate market in Sweden is partly due to sufficient amount of equity available for all types of property investments. With bond yields at low levels, domestic institutions have increased their exposure toward properties chasing higher returns and significantly increasing the supply of equity on the market. Banks are becoming more interested in lending against properties and are in some cases competing, leading to improving lending conditions with more favorable terms for property owners. AIFMD regulated property fund
Why Sweden? The Swedish Housing Market, continued. The cross border activity during the first quarter 2015 amounted to approximately SEK 10bn, slightly lower than expected. However, this is not an indication of lack of investor interest from international investors, but rather a result of foreign investors failing to outbid domestic investors in structured processes. Forward expectations are that transaction volumes will pick up as the interest for property investments is exceptionally strong from all types of investors. Although investor interest is mainly focused on prime assets in Stockholm, the shortage of prime products in Gothenburg and Malmö has led to a wider interest for secondary assets for all property types. Prime yields have hardened at a slower pace and secondary yields have hardened across most segments as investors are chasing investment options and also higher returns. Some Key stats: - Prime assets remain favored by a majority of investors, but the lack of seller interest is likely to limit supply and many investors are likely to widen their investment requirements in terms of sub segments as well as asset quality. - The interest for alternative financing, such as bonds and preferential shares, has continued to grow and is expected to grow. - Prime yields could move in further, but the lack of prime assets is likely to push secondary yields downward resulting in a reduced yield gap between prime and secondary. - The increased appetite for property lending among banks has led to a competitive climate among lenders, leading to more favorable terms for property holder. AIFMD regulated property fund
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