REITs are under pressure to keep up a steady record of dividends, even if they’re not justified by market conditions. This forces the REIT to borrow more money (which increases investment risk), or pay dividends by raising more equity rather than achieving greater property cash flow. Paying one investor with another investor’s capital sounds a lot like a Ponzi scheme.
Meanwhile, more cash is flowing into private equity real estate, which can have a more sustainable fee structure. Well-run private equity funds can eliminate unnecessary fees by acting as a real estate operator — investing in properties directly and serving investors personally, rather than going through a middleman.
We ask investors to commit to putting up funds when they’re needed. This “capital call” comes only after we have found a suitable property. Up to date we have exclusive projects ready to start beyond 1 Bilion EUR, consisting of projects beginning at a volume of 40 Milion EUR.
Our patience pays off with the right price for acquisitions and a strategy that maximizes their growth potential. We are skilled at finding value and limiting risk to bring investors superior risk-adjusted returns.
For a overview of our activities, visit our site: