Property One Group

Investment strategy & philosophy

Investors can enjoy appropriate and risk-commensurate returns by investing in real estate loans. The fund invests primarily in subordinated loans granted to professional players in the Swiss real estate market. The loans are always secured by a property. The fund’s geographical scope is limited to counterparties and collateral in Switzerland. Other key fund parameters include:

  • The loans are short to medium-term loans with a maximum term of 36 months.
  • The minimum amount of each loan granted is CHF 1 million.
  • A maximum lending value of 80%, measured based on the sustainable market value, applies.

 

Financing is provided for project developments, condominium income properties intended for sale, existing properties and bridge loans, among others. No financing is provided for privately used residential properties. Financing can be provided during all phases of the real estate life cycle.

Particular emphasis is placed on a detailed review of potential loan applications. This review process involves in-depth due diligence with regard to the counterparty, the collateral/property and an analysis of the financial situation. This is where Property One’s extensive real estate expertise and experience in the assessment and awarding of subordinated financing come into play.

What do we invest in?
  • Mortgages / loans
  • Collateral
  • Subordinated / second mortgage
  • Maximum lending value of 80% of the fair market value
When do we invest?
  • In all phases of the real estate life cycle
  • To exploit opportunities when liquidity becomes scarcer in the market
  • “Traditional” financing only available to a limited extent
How do we invest?
  • Based on a selection process comprising several steps
  • Stringent focus on downside protection
  • Close monitoring of the market and the property values
Why do we invest?
  • Above-average returns on subordinated loans compared with direct investments with expensive valuations
  • Property One’s expertise, experience, network and acquisition qualities allow it to identify opportunities for generating attractive returns