CONTRACOM REAL ESTATE INVESTMENT is a newly formed limited company incorporated for the purpose of issuing the Notes with no operations, material assets, other than receivables under the First Proceeds Loan, or material liabilities, other than the Notes, and it has not engaged in any activities other than those related to its formation in preparation for the issuance of the Notes.
The company is a funding vehicle for its Group. As such, it raises funds for example through the issue of Notes and on-lends it to ParentCompany. In the future, it may raise further funds and on-lend monies to companies within the Group by way of intra-group loans or through the issue of other notes.
Alternatively, the Issuer may directly invest in real estate trophy assets. The Companyâ€™s strategy is to invest in well located, real estate assets in the established and proven market as Spain. Real estate assets have income and capital growth potential, realisable through active portfolio management. As the market cycle ages the primary interest today is in business deals, niches and sectors that can demonstrate at least one attribute in the form of Arbitrage, Distress or Dislocation. This way the Company rely less on the economic winds for performance but instead on the specific deal situation and we can therefore juice returns if the economy remains positive whilst reduce downside risk if the economy hits the buffers.
The first investment principle as a Private Equity Real Estate firm is to always try and ensure we preserve the capital invested. The second principle is to fully explore the multitude of options available to maximise returns..
When investing in quality net-leased commercial real estate, Contracom Real Estate Investment Limited seeks to align our investment strategy objectives to shareholder goals.
Our programs are structured to provide investors with durable income, diversification and the potential for capital appreciation. Our proven track record with full-cycle programs includes successful liquidity events for our investors.
Contracom Real Estate Investment Limited invests primarily in income-producing, strategically located core commercial real estate across the retail, office and industrial sectors. Contracom Real Estate Investment Limited seeks high-quality, creditworthy tenants and long- term net leases, which minimizes the risk of interrupted income.
We are conservative to moderate in our use of financing, targeting a 50% leverage ratio to increase potential total return to investors. The excessive use of financing potentially increases a REITs business risks, potentially hinders the REIT’s ability to make distributions and may decrease the value of an investment.
Contracom Real Estate Investments Limited business strategy is underpinned by a key specialist skill recognising opportunities to unlock capital value in hotels. We take an entrepreneurial approach to each of our hotels, underwriting each investment with extensive due diligence and scenario analyses, comprehensive investor reporting and pro-active asset and operations management.
The Group´´s main objective is to maximize shareholder value in the longer term through active commercial development. The company is composed for the following shareholders:
|SHARESHOLDERS||% OF SHARES|
|Novarent 2014 Socimi, S.A.||80%|
|AKEVAC Managemet Limited||20%|