Private Credit in Real Estate
Private Credit in Real Estate

HOW PRIVATE CREDIT IN REAL ESTATE WORKS?

ADVANTAGES OF REAL ESTATE PRIVATE DEBT

REAL ESTATE UNDERLYING

✓ APPROPRIATE LEGAL FRAMEWORK

The legal framework implemented for this type of borrower/lender contractual relationship in North America provides the necessary confidence in its execution.

✓ REAL ESTATE WITH POTENTIAL

The properties located in North America (Canada and the United States) with a potential gain in value are targeted.

✓ MANAGEMENT OF THE RISK OF DEFAULT

The risk of default is managed by a rigorous analysis and selection of borrowers and qualitative real estate buildings located in fast growing areas.

✓ UNCORRELATED WITH FINANCIAL MARKETS 

The real estate market is not directly correlated to financial market volatility.

✓ INFLATION = OPPORTUNITY

The risk exposure is minimized by an inflationary environment. The real estate property increases in value which reduces the loan to value ratio of the real estate asset.

FLEXIBILITY & ATTRACTIVE RETURNS

✓ SENIOR DEBT

The debt has a senior rank and first rank security. In case of default, it will be reimbursed first. The fund replaces the bank in this type of transaction.

SHORT DURATION

The loans granted are for short periods of time. Their duration is between 1 and 2 years.

RECURRING INCOME STREAM

Debt instruments have the advantage of generating regular cash flow of income. The mandatory Debt Servicing is paid by the borrower periodically.

RISK MANAGEMENT IN A TIGHTENING MONETARY POLICY

The short duration of the fund’s portfolio will make it less sensitive in the event of a rise in the interest rates.

OPTIMAL RISK / RETURN

This type of “unconventional” loan provides a return on investment that is significantly higher than the return generated by a conventional mortgage.

Why invest?

⇨ For Real Estate Income
⇨ For Distribution Coupon: 6% per year, paid quarterly

How to invest?

AVAILABLE ONLY FOR US AND NON-US ACCREDITED INVESTORS

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