Launching Iberó I Investment Fund

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We share an article from La Nación  newspaper about the launch of our Iberó I Investment Fund, an opportunity to invest in real estate in Spain, with the participation of Soldati Propiedades as trader, INMSA as manager and FDI Internacional as administrator.

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The right moment to invest in Spain

With clear signs of general economic recovery, the real estate market is also reactivated and inspires business opportunities.

A very competitive exchange in relation to the US dollar, a rising GDP and a sustained employment growth have caused the investment sector to focus its attention on Spain since last year which, after a 7-year collapse, seems to have found its way to the economic recovery, this being even more evident through the reactivation of the development of real estate.  

Much is said that Spain has become the new star in the real estate investment sector worldwide. On the one hand, there are signs of macroeconomic recovery. But, in addition to this, the real estate market is also showing very encouraging signs. For instance, the demand of housing units by foreigners usually anticipates 2 years the beginning of a price change cycle in real property. And this phenomenon is starting to take place right now”, says Alejandro Shuff, Sales Manager of Soldati Propiedades which, together with INMSA (American Real Estate Investments Company) have just launched Iberó I Investment Fund in consistency with this trend.

Spain is getting back on track

It is publicly known that since 2008 many economies in the world started to show adverse results in their macroeconomic indicators, especially, in the developed countries. Spain was not the exception to this, and also it was one of the countries most seriously affected by the global crisis. However, a couple of years ago, variables stopped their decline and since 2015, and even more this year, the recovery started to take place.

A GDP that is already increasing above 3 per cent and 500 thousand new jobs are the two strongest signs of  the Spanish recovery. In addition to this, you pay U$S1.10 per each euro, so the exchange rate has become very competitive. Negative inflation and high confidence level in consumers make a very positive macroeconomic picture to start investments.

 

Specifically regarding the real estate market, there is very good news as well. A wider monetary policy established by the European Central Bank is expanding mortgage loans and motivating banks to keep low rates at 2.2. per cent annually. This led a great number of investment companies to acquire Class A property, with the best quality and location, with the certainty that they will soon be revaluated and that a new construction cycle for these types of property will occur.

Time for investment

This situation makes Spain the most attractive country to invest in real estate considering the risk-return ratio in the mid-term, if compared to other countries with similar level of risk in Europe or to other countries or regions such as USA or Latin American countries.

For such reason and paying attention to the  global real estate markets and the investment opportunities arising from them, the  real estate management companies INMSA and Soldati Propiedades are launching their first investment fund named IBERÓ I so that individual investors may have the chance to access this unique investment opportunity.

The purpose of such fund is to invest in commercial property (stores and offices), class A and B, located in the most important urban centers of Spain (Madrid, Barcelona and capital cities of Provinces). This fund will manage the acquisition of property (even under the current replacement cost), their improvements to add value and optimize profitability and their future sale. It is oriented to a prudent investor with a 36-month investment horizon; the objective of the fund is to achieve 2-digit profitability in Euros, with annual coupons advances for the investor.

The investment amount will be 5,000,000 euros with a minimum 200,000 euros.

The fund also expects to improve the return on invested capital through credits obtained from Spanish Banks, with very good conditions, enabling the investor to double its purchase capacity.

This project is consolidated with the participation of Soldati Propiedades as trader, INMSA as IBERÓ I Fund Manager and FDI Internacional as administrator.

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