REAL ESTATE FOCUS AREAS:
Acquisition of distressed properties either seized by the banks or on sale by distressed developers or foreign investors exiting the market. For example:
Fixed income B/C class commercial properties (CEE region) with surrounding plots for possible further development. With restructuring and proper management, the yields can be increased and surrounding land plots sold (after permitting) to provide faster return of some of the initial investment capital.
Existing residential buildings (sometimes in big bulks) where profit can be made selling the individual units with limited reconstruction needed.
Mixed use portfolio of properties that when restructured and sold off separately to various parties can bring interesting profit.
Acquisition of distressed debt from local lenders secured by real estate and restructuring the properties and selling them off (in parts) to several buyers.
Securing land and or partnered land rights for development on such land, which will be sourced by the CEREFunds management team. The land will be prepared so that it can be developed into residential, commercial or mixed use units. The CEREFunds management team will be responsible to oversee appropriate steps from Due Diligence and acquisition of the land plots, zoning application procedures up to the final planning/building permission. The team will provide market feasibility studies, resale of the apartment units, manage the associated services, as well as oversee the entire process of development.
Acquisition of large strategic land plots (near growth areas), sometimes from several different owners, at discounted prices using larger purchasing power, which will be prepared for redevelopment by the CEREFunds team. This means among others value added improvements through rezoning and land plot subdivision development. The focus is on high growth areas and regions in the Middle East and the CEE region. Managed by an experienced CEREFunds team with local presence, that will manage all aspects of the development process including site acquisition, project entitlements, architectural and engineering planning, infrastructure development and the sale of the developed lots.
Residential/commercial fixed income projects
Typically residential, commercial or mixed-use real estate projects in capitals or large regional cities, supported by a stable local economy, which can provide IRRs of between 15 – 25% over the investment period.
Renovating buildings im the historical city centres
In Central Europe, this was the original market for foreign investors, focusing largely on tourism and foreign buyers. However, the opportunity for high-growth has largely passed, and renovation of very old buildings is expensive and time consuming. We will however always consider the city centers due lower fluctuation of asset prices and higher liquidity.