REAL ESTATE BRAZIL FUND

 

 

At a glance

RE Funds Markets

 

A fund really different, unique, since:

  • the vast majority of real estate funds are closed-end funds
  • +80% of real estate funds are invested in the United States (+60%) and in Europe (20%)

Where is diversification when it is nevertheless expressed as a leitmotif, a golden rule for investors to limit risks ?

Brasil vs Europe Offer - Demand

 

 

A recurrent deficit in housing

with only 46% of demand being met

for 210 million inhabitants.

Brasil RE 2001-2030

 

 

A very strong growth potential.

Which will drive the recovery of the price growth curve once Brazil has resumed the pace of economic growth

and lifted political uncertainty after the October 2018

Presidential elections.

The Economist House Price Index

 

A linear and continuous price increase that has been out of proportion with the rest of the world since at least 2008,

which places Brazil very largely in the lead,

including a period of global economic slowdown, a commodity price crisis, a brutal recession to -3.5 and an unprecedented major political crisis, all this combined, and affecting the country since mid-2014./p>

A demonstration by the facts of the resilience of the market and the relevance of the choice of the Brazilian RE assets when one wants to protect capital in the long term and really free oneself from the financial markets.

 

☰ Share Classes

 

A/EUR LU0806482351 Open-ended Accumulation
  Reference currency: EUR Minimum subscription amount: 125.000 € Minimum subsequent subscription amount: 50.000 €
  Entry charge: 0 Redemption charge: 0  
  Management fees: 2% p.a. Performance fees: 10% above 12% hurdle  
  Subscription: monthly Lock-up period: 3 years each subscription Redemption date: June and December
  NAV: 31 December NAV update: 30 June Brazilian ABT / Internat. standards

 

☰ Investment Strategy

 

The investment policy seeks capital growth in the long-term by focusing on real estate markets in Brazil.

The investment strategy is at least initially to primarily focus on two Brazilian States (the State of Rio de Janeiro (“RJ”) located in the South-eastern region of the country and the State of Pernambuco ("PE") located in the North-eastern region on the basis of the strong experience gained in Brazil over the last years (from 2005 to today) by the fund founder and sponsor.

More specifically, investments will be made (1) in land acquisition and development of “greenfield” real estate assets on these pieces of land, (2) in the development of new real estate projects, and (3) in existing real estate buildings to be refurbished through retrofit processes.

The strategic goal is to reach an optimal mix between (1) the purchase of real estate assets with the aim of keeping them for rental income generation and (2) the regular materialisation of capital gains and reinvestment of those proceeds into new real estate assets.

The diversification strategy is based both on the choice of two regions with very different contexts and highly diversified assets.

During the first years, the portfolio of the fund will essentially include some investments in new assets being constructed and in some refurbishing operations connected to the residential, commercial, touristic and industrial segments.

 

 

☰ Portfolio

 

The portfolio is diversified and except temporarily, no asset should exceed 30% of the portfolio.

Structure

Portfolio-shares

Greenfield

Piet Mondrian

Retrofit

Apartment Farme

Offices

The City Office

 

 

☰ Performance

 

Performance

The fund is open-ended and with patrimonial profile. Performance must therefore be considered in its context (in particular GDP, the exchange rate).

 

 

☰ Documents

 

Designation Version Date Format/Download
Issuing document version 2 28/11/2013 pdf