Return on Investment (ROI)
The average expected return is 7.8% per year for the duration of the investment, i.e. two years.
The objective of the Limited Partnership Senioren Woonfonds I C.V. is to acquire three objects, all suitable for conversion into high-end luxury apartments and where possible and desired, supplemented with care facilities.
The fund will secure the objects by acquiring ownership of the fore mentioned object(s). The next phase of the process includes repurposing and obtaining and preparing the needed permits. After this process is completed, the object will be sold to a new C.V. We call this the ‘Development C.V.’ and the task of this Development C.V. is to realise the renovations, conversions and sales.
As this takes place under the authorisation of a new C.V. the Limited Partnership Senioren Woonfonds I C.V., therefore, does not run any risk that might occur during the development phase. The Limited Partnership Senioren Woonfonds I C.V. has an indefinite term, but we aim to have everything completed within two years. During this period, dividends are paid quarterly, and at the end of the two-year term, the principle will be paid back together with the last dividend payment.
Preparations for repurposing and development starts immediately after the acquisition of an object. The Limited Partnership Senioren Woonfonds I C.V. does not repurpose itself. It transfers the implementation of repurposing and development to Development C.V. This Development C.V. collaborates only with developers with a proven track record in the construction of high-end luxury apartments specifically linked to historical objects.
The return is based on disinvestment with a positive result after adjustments and repurposing. The Limited Partnership Senioren Woonfonds I C.V. is active in the fast growing segment of senior citizens housing complexes. The ING Bank has predicted that this market will see an annual growth rate of 7% up to 2030 according to ‘De Telegraaf’ (largest Dutch newspaper). Based on this information, our estimated profit of 15% can be called conservative.
Disappointing results will only affect other costs and not interest payments, as these take precedence. This investment, like any other investment form, also involves risks. The topic of risk is covered in detail in the document ‘Information Memorandum’. A positive aspect that is worthwhile mentioning is, if the sales price is higher than expected, the shareholders will receive this positive result as extra Return on Investment. We refer to this in the Article of Association of the Limited Partnership Senioren Woonfonds I C.V.
For more information, see our prospectus and detailed Information Memorandum