Investment amount: From SEK 1 000 000
Target yield: 10-20% per year
Investment period: about 10 years
Who is the investment to?
Swedark Campus AB, caters to companies and institutions interested a long-term real exposure to the Swedish residential real estate.
Investment Strategy.
Swedark Green Home AB invests in residential real estate with attractive locations in mainly small and medium-sized Swedish metropolitan regions and outside urban areas. The objective is to acquire investments with a yield of 5-7%. By focusing on areas with a diversified economy and population growth to minimize the risk of vacancies; thus approximately 40% of Swedish municipalities have housing shortages that create stable tenant base.
Risk
An investment in real estate is always a risk. The main elements of risk is that the Company’s apartments cannot be rented (high vacancy rate), unexpected costs of management and maintenance, and depreciation of the stock. Also affected is the company’s return of interest rates. The risk level of planning and interest expense is to some extent offset by a property owner; according to the utility value system, it is allowed to compensate for increased costs by raising the level of rents in arrears.
Furthermore, companies use, if necessary interest rate hedging instruments to limit interest rate risk.
Securities
There are two different ways, example,
The loan offers a fixed rate of 10% annually.
Subscription
Subscription of shares executed via subscription form obtained
by submitting via Swedark Green Home AB