Trading

The structure will provide for the holding a share of the newco and the transfer of the bare ownership rights on the remaining shares to the club deal of selected financing members, on payment of the amount established in the business plan for carrying out the operation.

Each operation, the holding will draw up a business plan that specifies:

  • purchase price
  • design costs
  • charges and taxes
  • costs of redevelopment and construction
  • promotion expenses

 

The duration of the usufruct right of the shares of the financing shareholders that remains in favor of the holding will be contractually established in a period equal to that foreseen in the business plan for the closing of the operation, against which the holding will receive from the newco the task of managing the operation, in a form similar to that between a fund and its own asset management company.

Thanks to this architecture, on one hand the holding company will be granted the complete governance of the transaction, on the other hand the investors will be ensured the certainty of a guaranteed profitability in the short term, with the absolute certainty regarding the protection of the loan made, given the fact that, even if the holding won’t complete the transaction or repurchase the bare ownership of their shares, at most after 1 year and respecting the agreed timesheet, they would become effective owners of the newco.

Smart Renting

The renting market is rapidly evolving, through the development of technological platforms (such as AirB & B, booking and similar) or simple apps, entailing the need even for small and medium investors to access the management of Smart contracts and short-term renting, through the proposal of innovative services, previously only accessible to large multinational corporations.

This mutated scenario opens up new development opportunities in “as a service” mode, thanks to the holding identifying a real estate/hotel/technology management company that can support the individual new companies.

Regardin the operating scheme, as in the trading hypothesis, the structure will provide for the holding of a share of the newco and the transfer of the bare ownership rights on the remaining share to the club deal of selected financing partners, against the payment of the amount established in the business plan for the implementation of the operation (purchase price, design costs, charges and taxes, costs for redevelopment and construction, promotion expenses).

The duration of the usufruct right of the shares of the financing shareholders remaining in favor of the holding will be contractually established in a period equal to that foreseen in the business plan for the realization of the real estate redevelopment and its earning, against which the holding company and the newco will receive the task of managing the operation, in a form similar to that between a fund and its own asset management company.

The newco will therefore lease the redeveloped property to the selected property management company, for the regulatory period, at a price that must guarantee coverage of all the corporate costs of the newco, in addition to foreseen financial costs in favor of the investor shareholders.

This architecture will ensure the holding company governance of the operation and coverage of the charges due to the financing shareholders.

Likewise, the financing shareholders will have the certainty of guaranteed profitability in the medium term and the guarantee of protection of the loan made, given the fact that even in the event of failure to exercise the right to repurchase by the holding, on the one hand would continue to receive the contractually established annual interest rate on their invested capital, while on the other hand, at the natural expiry of the lease, they would become effective owners of the newco.

This structure grants multiple benefits:

Low costs and fast production and operational times
Each single operation would remain independent from the others and at the same time allows the holding company to optimize costs and weights in the aggregate management of the various projects
The holding maintains the governance of each individual project, being able to diversify the strategies of each deal based on the impact on the market (deciding whether to keep the property for income, sell it, create leverage, etc.); in fact creating a group advantage also for the single investors of the single newco
The financing shareholders will feel strongly encouraged by this type of operation, which summarizes the opposite investment safety and high performance profiles, given that the committed capital made will be covered by the “secured” guarantee of the underlying real estate value purchased by the newco, while the fixed guarantee system of profitability and the repurchase of their corporate rights by the holding company, would in any case ensure that they receive financial remuneration of absolute respect