With this letter, in a short distance from the last we sent to you on April 15th, 2016, we have a duty to inform in relation to the latest news about the Brickstone Fund.
You will remind that the main theme of the letter concerned the fact that because of the fall of the ruble, the Bank invited us to decrease the amount of the mortgage.
In the immediate aftermath, our officers, among them members of the Advisory Board, they met the bank’s top management; the talks were focused to the high mutual cooperation and the agreements reached are as follows:
Sberbank requested Brickstone to pay back 7.370.000 USD during the year 2016. We have to note that a portion of the money will be paid with returned VAT.
The bank requested to pay back the amount in the following installments;
- by May 28th we should pay in 3.727.000 USD out of this amount 600.000 USD shall be paid with VAT;
- by December 31st, 2016 we should pay the 3 great site.643.000 USD out of this amount 277.000 USD shall be paid with VAT;
During the meeting was also discussed the possibility that the Fund is not able to repay under the terms required by the bank, the sum mentioned above and for this reason the bank expressed the willing to raise the interest rate up to 8,5-9% plus they will apply a monthly penalties that could be around 75.000 USD/month.
This led us to plan the route you’re going below to enunciate.
In reference to the letter of 15 April 2016 with which we have made known the fact that the value of the NAV being calculated as part of the Service Provider, the Fund Service Valletta should return a value financially very low and at the same time the Investment Committee of Brickstone thinks the actual NAV isn’t representative of the real value of the assets held by the Fund as far removed from the simple acquisition costs of the areas and the construction of hotels, to date, in the same locations.
In fact, even thinking any Investor would take advantage of the devaluation of the ruble, this Investor should in any case should deal with the import to Russia of most of the materials for the construction and the level of furnishings and high quality present in our hotels, with inflation on considerable territory that pushes prices and wages upwards and finally, should not be forgotten the near impossibility of finding equally exclusive locations such as those on which there are our hotels
The Fund Brickstone, accordingly to the above decided the opening of new subscriptions for an amount of Euro 4.000,000.
Dear shareholders, you have the right but also the duty, to reflect in depth, in order to fully exploit this apparent anomaly market.