Investment Objectives and Policies
Strong capital growth through early stage investments in real estate, mainly sophisticated hotels, shoppingmalls, commercial centers and residential developments mainly in Russia, the Baltic States and other member States of the Commonwealth of Independent States (CIS).
Context: Driven by steady economic growth,demand for Hotels, Shopping Centres and residential developments is also expected to grow in Russia, the Baltic and CIS States.
The Fund will invest mainly in hotels, shopping centres and residential developments to pursue superior returns and will actively seek early development opportunities to minimise potential downside and increase the chances of high returns by allowing realization at any stage of development.
The management team will pay close attention to market conditions when seeking bank lending, and only commerce the development phase of selected projects if the future leasing or management of the property are secured through agreements with reputable operators.
Every investment decision will be made taking into consideration development costs and marketability, within the contest of current and anticipated market conditions.
Investments will be focused on hotels located in or near city centres, shopping centres and residential apartments blocks in strategic areas and quality locations offering comprehensive community services such as security, maintenance, health services and property management services.
The Fund may also invest in minority interests in real estate companies, both listed or unlisted, and take liquid positions through money market instruments and fixed-term deposits.
Depending on the performance of the Fund during any particular Accounting Period and any new investments which the Investment Committee may be considering for the next Accounting Periods, the Directors shall have the right to recommend to the Company in general meeting to declare and distribute a dividend corresponding to circa 50% of the annual net cash flows derived by the Fund from revenue generating investments or the resale or disposal of investments.