Investment Details
Eastern European Equity Plan
Ref: NSP_26185
Type: Property fund
Key investment features
- Experienced management team in place
- Investors benefit from collective buying power
- Risk spread through diversity of portfolio
- Projected returns of 20% per annum
Description
A prolific Management Team, with vast experience in Central Eastern European property investments, has been assembled to operate an investment vehicle, the ‘Equity Plan’, designed to allow individual Investors to benefit from collective buying power.
Suitable developers are carefully handpicked offering housing projects aimed at the local end-user market. Targeting developments at the pre-release stage the Management Team will negotiate substantial discounts for bulk off-plan purchases. The properties are held under re-assignable contracts and only the modest first stage payments are made on each unit. Upon public release of the projects the developers are contracted to prioritise the sale of the investor units ahead the rest of the project. The profits are derived from uplift in value from the discount, capital growth and the fact that the property is sold much closer to completion.
The exit is designed via re-selling to the domestic population. Typically the local populations in these regions are accustomed to buying only completed properties, thus creating a window of opportunity for the ‘Equity Plan’. With the credit boom in Eastern Europe and the relatively recent advent of the domestic mortgage market, locals are capitalizing on their increased spending power and relocating from their existing communist era homes in to modern new developments. The majority of these buyers have zero borrowing against their existing homes and are able to sell these or release equity, in order to be able to comfortably afford their new home. Due to economic stability and historically low levels of credit lending, these locations remain robust and largely unaffected by the current global credit crunch.
By only paying the first stage payment on each unit before re-selling, the ‘Equity Plan’ is in essence gearing its investments enabling exponential returns. It is predicted that the scheme should enjoy in the region of 20% ROI per annum.
For further information on the innovative investment opportunities currently available at NSP International please complete the form below.
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