INVESTMENTS

IVANOVS INVESTMENTS provide full range of investment management services for High Net Worth Individuals (HNWI) with at least 500.000€ available capital to be deployed in real estate asset class. Our approach is to define tailor made strategy for each customer either it is a retiring business acumen looking to preserve it’s capital or a young startup founder who had successful exit and is willing to achieve attractive returns within real estate development projects.

The range of services starts with identifying prospect investment target, ensure thorough research and due diligence, define business plan, leverage capital to achieve higher returns, provide financial and project management, execute marketing and sales of the final product. Customers with modest investment budget can always benefit from our consultancy services.

This section provides information about available sample investment strategies which are subject to be discussed in order to define the right fit for the client.

CORE+

Core+ investments are considered to be the least risky because they target stabilized, fully leased, secure investments in Riga city. These include properties with long term leases in place to high credit tenants and Class A buildings in highly desirable locations. These buildings are often well kept and require little to no improvements on behalf of the new owner. Therefore, these type of real estate investments generally do not experience significant appreciation in value but rather provide stable, predictable cash flow with relatively low risk. This type of investment suits investors who seek capital preservation and long hold periods, and often warrants low leverage acquisitions.

Typical investment project examples: (1) Supermarket with a 5-10 years lease agreement by Rimi or Maxima (2) A or B1 class office building with good mix of tenants and medium to long term lease agreements (3) New development or recently renovated residential rental building in a central location.

VALUE ADD

Value Add real estate investments typically target properties that have in-place cash flow, but seek to increase that cash flow over time by making improvements to or repositioning the property. This could include making physical improvements to the asset that will allow it to command higher rents and sales price, increasing efforts to lease vacant space at the property to quality tenants. Once successfully increased the net operating income at the property, typically asset is sold to capture the resulting appreciation in value. Medium to high leverage is deployed to finance the project and increase returns to investors.

Typical investment project examples: (1) Renovation of an art nouveau building in city centre with an existing rental cash flow from street retail and/or several apartments and selling the building by apartment (2) Renovation of a C class office building with or without existing rental cash flow, renting it our and selling to an investment fund (3) Renovating a non performing shopping centre and signing anchor lease agreement with Rimi or Maxima.

OPPORTUNISTIC

Opportunistic investments tend to be new developments either greenfield or brownfield. Often times these assets will take much longer development term than Value Add projects. These types of projects offer the highest level of return if the business plan is successful, but also bear the most risk as the properties have little to no in-place cash flow at the time of acquisition and have the most complicated business plans. Sponsors for these projects typically employ the use of high leverage and are often subject to less favourable debt terms and higher interest rates than more stabilised properties. Opportunistic business plans generally achieve higher returns to investors than core or value add strategies through substantial appreciation in value.

Typical investment project examples: (1) Residential development with sales of apartments as an exit (2) Office development, renting out and selling the cash flow generating property to an investment fund (3) Shopping centre development, renting out and selling the cash flow generating property to an investment fund.

Any details about investments shall be discussed in person. IVANOVS INVESTMENTS is not offering any investments to public or retail customer. Nothing contained herein constitutes an offer, solicitation or recommendation regarding any investment product or service, or the offer to sell or the solicitation of an offer to buy any financial instrument; nor shall any such services be provided, or financial instruments be offered or sold, in any jurisdiction in which such an offer, solicitation, provision or sale would be unlawful.