INTRODUCTION OF REAL CAPITAL FUND I IN MIAMI

INMSA LCC USA introduced Real Capital Fund I, a new tool enabling financial advisors to channel investments through a specialized Real Estate fund focused in Spain. The new fund allows small and medium investors to access investments with a minimum amount of USD 50,000.

The LATAM INVESTMENT SUMMIT – LATAMIS Miami- is the Latin American Forum gathering Equity and Investment Funds with leaders of the real estate development sector of all Latin America. In 2018, the second edition of this summit was held on October 19, 2018 at JW Marriot Hotel in Miami. LATAMIS Miami proposed a dynamic interaction and relationship among the investors operating in Latin America – Investment Funds, Banks, Family Offices and private wealth – with operators of the real estate market. In this context, Carlos Rincón, Account Manager of INMSA LCC USA introduced the new fund which allows all types of investors to access the Spanish real estate market.

The most important investment goal is to generate a high level of capital valuation through the active management of a portfolio of real estate assets with potential to add value and subsequently trade them in the short and long-term.

The target market is Spain, its main regions sand cities, especially: Madrid, Costa del Sol, Valencia y Alicante:

  • Taking advantage of the initial recovery of prices in class B/C properties inhabited by middle and middle-low income families in Spain who are recovering from the crisis
  • Obtaining maximum levels of rental income from residential homes as rental prices have not dropped, while property values have.
  • Purchase prices are under the replacement cost.
  • Today, it is 40% less than in 2008, plus a 20% discount if purchased from large portfolios
  • Today, a new Real Estate investment record has been achieved during 2016-2017, exceeding the maximum historic figures obtained in 2007.
  • A new construction cycle has started, thus allowing a strong recovery in land values.
  • Today there is a portfolio involving € 130 billion in distressed assets with a sustained tendency to stock reduction.
  • Mortgage financing for developers and buyers was restarted at minimum historic rate values.

 

Benefits for investors:

  • Access to large-scale projects in the international Real Estate market.
  • Obtaining returns higher than through traditional Real Estate operations, with reduced risk levels.
  • Porfolio diversification

 

The defined investment strategy is the following:

  • Market: Europe – Spain.
  • Sector: Residential.
  • Assets: Portfolio of residential housing, residential buildings in distress and urbanized lands.
  • Distressed assets with high potential for valuation and high rental income.
  • Acquisition of portfolio from banks with at least 20% discount of the market value.

 

This is an equity fund with 10% target return in US dollars, with an expected range between 9% and 12%. Annual advance payments at 4% will be made. The duration of the equity fund is 48 months.

 

This fund is listed in Vienna Stock Exchange.

Issuing and payment agent: The Bank of New York Mellon London.

Depositary agent: Euroclear

Trustee:  Intertrust Trustees Limited

Arranger: Flex Funds

Auditor: Deloitte

Fund Manager: INMSA

 

The fund was welcomed by the representatives of the financial market present in the conference.