| Private equity investment in Croatia |
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| Tuesday, 29 April 2008 | |
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In these turbulent times of volatile but highly correlated markets, sophisticated investors need as much genuine diversification in their investment portfolios as possible. Emerging Market Property (EMP), which is affiliated with City Trading Post, brings to investors some of the most exciting, dynamic, and potentially profitable 'alternative' real estate investment opportunities in the world today. More wealth has been created by investment in land and property than any other asset class ever. EMP is now launching its second project in Croatia on the island of Ciovo on the beautiful Dalmatian coast. A new company has been formed, called Dalmatia Developments (II) Ltd and the project will be known as Koriolan, after a famous nobleman from the nearby town of Trogir. A Croatian special purpose vehicle has also been formed and a seed investor has already committed 500,000 equity investment. Why Croatia?Croatia is on a formal path towards EU accession, is politically stable, and is enjoying healthy economic growth of around 5.5% per year. Tourist visitor numbers are increasing rapidly thanks to the beautiful environment and comfortable climate. The property market has been growing steadily for the last few years, thanks to increasing demand from Croatians as well as foreign investors. Further growth is expected over the next few years, in spite of current global macroeconomic concerns. The key features of the investment are outlined below - Private equity investment in a land purchase and residential/resort property development project on the island of Ciovo on the Dalmatian coast of Croatia Approximate forecast Gross Market Value (GMV) of 39.8m Project duration estimated at 29 months from land purchase transaction in June 2008 Total investor funding required of 6,300,000 minimum investment is 100,000 Investment split between equity (68%) and debenture (32%) Forecast returns on the equity portion are 167% (or 23.8% per year compound) Interest on the debenture is 15%, and is expected to be repaid after 14 months Forecast returns are net of Croatian taxes and all management fees The investment is illiquid, unlisted, and not transferrable; it should be considered non-core and high risk, and as such is not suitable for all investors The investment is SIPPable
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Exchange Rates
Currency EUR 2008-07-24 |
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![]() | GBP | 0.78720 |
![]() | USD | 1.5741 |
![]() | HKD | 12.2801 |
![]() | THB | 52.595 |
Many thanks Andrea, you have made the whole process so easy!
Kate Koch
Chief Financial Officer
Hi Ellie, very pleased to tell you we checked the account last night and the money is in! can't thank you enough, they had me very worried on the phone so this is brilliant news! many thanks again for your help on this
kind regards,
Lee
Read more...Andrea - thanks for your work on the A&L deal, you saved us a good deal of money and we move in two weeks.
Read more...Having been a client now for 2 years, I have found both you and City Trading Post to be highly professional, trustworthy and reliable.
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