City Trading Post Investments
Home arrow News arrow Private equity investment in Croatia
Private equity investment in Croatia PDF Print E-mail
Tuesday, 29 April 2008

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


If you are interested in this investment, then please contact us to discuss further. If the investment is suitable for you, then we will send you a detailed Private Information Memorandum which contains all the information you need to make an informed investment decision.

 

Click here to contact City Trading Post now to talk more about this offer or to discuss it further and, if suitable, we will send you a detailed Private Information Memorandum.

 

The CTP Newsletter

Enter your name and email address here to receive our newsletter.


Receive HTML?

Quotes are delayed 15 minutes 

ECB Exchange rate

Exchange Rates
Currency EUR 
2008-07-24
GBP 0.78720
USD 1.5741
HKD 12.2801
THB 52.595

Client Testimonials

  • Many thanks Andrea, you have made the whole process so easy!

    Kate Koch
    Chief Financial Officer

    Read more...
  • 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.

    Read more...