BASIC PARAMETERS OF THE FUND
|TYPE OF FUND||London Residential Fund, Closed-ended.|
|FUND STRUCTURE||The Fund will be structured as a British Virgin Islands limited company.|
|TARGET RETURN, £||10%-15% gross compounded annual IRR, (Net, after expenses, management fees and taxes)|
|PROFIT DISTRIBUTION||Profit distribution upon the sale of properties at the end of the fund’s life.|
|MINIMUM FUND SIZE||£3,5 million.|
|MINIMUM INVESTMENT AMOUNT||£500,000.|
|COMMITMENT PERIOD||3 months from Final Closing (this is the time frame that we commit to use all the amount to purchase the selected properties).|
|FUND LIFE||1,5 years from Closing, which may be extended by up to one year at the discretion of the Investment Advisor and extended by a further year subject to the approval of the Investors.|
|MANAGEMENT FEE||2% per annum.|
|PERFORMANCE FEE||20% of the total net profit (after tax). This is paid upon the completion of the property sale at the end of the fund’s life.|
|DISINVESTMENT AND LIQUIDATION OF THE FUND||At the end of the fund’s life Managing Shareholder instructs CCRE (Consulco Capital Real Estate) to sell the properties and to distribute profits to the investors according to amount invested after payment of all the related expenses and fund obligations.|
|Selective acquisition of property with potential of active management to ensure maximum returns. We invest only in the highly liquid Prime Central London areas where high demand and limited supply will achieve a better selling price after renovation. Active management includes:|
|Obtaining a license for property refurbishment|
|Refurbishment and internal alterations|
|To finalize all the refurbishment works as soon as reasonably possible|
|To sell with maximum returns|
Net profit is taxed in the UK at the rate of 20%. There will be no capital gains tax or withholding tax on the distribution of dividends or interest profits.
SALE OF SHARES
Exit is possible at the sale of the property.
Annual unaudited consolidated interim financial statements of holding company will be presented to investors at the beginning of March.