The bond works in a similar way to an investment fund. When you buy the bond, you're not buying a particular property, but a fraction of the underlying global portfolio.
This configuration provides excellent diversification, as the investment is not dependent on the success of a particular property.
Fincapital Partners makes 2 types of investment: direct real estate investments and indirect investments.
Direct investments involve the purchase and operation of real estate assets of all kinds (buildings, warehouses, etc.). These investments will be listed on a specific page of the Fincapital Partners website.
In contrast, indirect investments can be made in other real estate funds or other financial instruments.
Indirect investment offers two advantages:
- On the one hand, it creates a liquidity buffer to repay investors, as the exit procedures for a direct investment are cumbersome. Indirect investment provides alternative liquidation options, allowing you to choose the most advantageous one at any given time.
- On the other hand, indirect investment makes it possible to invest smaller sums than would have been necessary to purchase a property in its entirety.
The aim is to achieve a portfolio composed of 70% direct investments and 30% indirect investments.
Initially, indirect investments will be in the majority, as it is not possible to buy properties directly if liquidity is too low.