Club Deal
Target group for the investment: Family offices, private individuals, companies, private banks
Type of share: nameshare
Benefit from the right timing with a short-term investment in an unique trophy asset:
Invest in a landmark through a capital increase and participate in the market recovery without development risks, but with upside potential and an attractive return projection.
What are the advantages?
· Short-term investment (<2 years) , higher returns
· Favourable timing for an investment, as entry conditions are favourable
· Capital increase through debt reduction
· Existing earnings potential
· Existing asset in operation (no development risk)
· Phase of market recovery
· Stabilisation of assets and market position
Straight investment strategy:
· Recapitalisation of assets at preferential conditions
· Pay off an existing bank loan
· Refinance asset
· Give the asset time to stabilise
· Achieve full market value
· Sell the asset after 18 months holding period
Investment reasons:
· Invest in an existing Swiss AG with an existing " trophy asset" hotel and eliminate development risks.
· Benefit from market recovery in Chicago and stabilisation of hotel revenues until end of 2024.
· Significantly reduced risk profile of the investment by reducing the loan for the remaining term.
· Purchase shares at a significantly lower price than the original issue and participate in the existing appreciation potential. (at that time Covid 19 pandemic, restrictions on entry into the USA)
· The issue price per share is USD 7,100 with a projected net asset value per share of USD 9,000 at exit in March 2025.
The intention of a capital increase is clear:
The significant reduction in debt improves the investment, secures the stabilisation process of the assets and thus contributes to the success and profitability.
KEY FACTS
NET IRR 17.4%
Multiplier. 1.3 x
Investment volume 28.4 Mio USD
Investment term 1.5 years
Conditions of the capital increase
The proceeds of the capital increase will be used to repay the existing bank liabilities.
Number of shares issued: 4'000
Issue price: 7'100 US dollars
Issue volume 28'400'000 US Dollar
Issue date: 30 September 2023
Minimum invest: 50 shares (355,000 US dollars)
Type of share: Nameshares
Return Prognose
Issue price per share: 7'100 US Dollar
Projected NAV per share at exit: 9'000 US Dollar
Earnings per share: 1'900 US Dollar
Exit date: 31 March 2025
Term in years: 1.5
IRR p.a. (internal rate of return): 17.4 %
Multiplier: 1.3 x
Why Chicago?
Chicago is located in the geographical centre of the USA and is the financial, industrial and transport centre of the Midwest.
With a population of around 8.7 million, it is the third largest metropolitan area in the US after New York and Los Angeles.
Chicago has a robust and diverse economy that employs more than 4.4 million people and generates an annual gross domestic product (GDP) of nearly US$693 billion.
The city and its surrounding CSA are home to more than 440 largest business establishments, including 35 Fortune 500 companies, underscoring its position as an influential economic powerhouse.
Chicago was ranked the 2nd most popular city in the world and 1st in North America in the 2022 Time out index survey.
Moody's ranked Chicago as the #1 most diversified economy among the largest 10 U.S. metropolitan areas based on employment in 2020.
This " Trophy Asset" is developed and held through our partner, a very well established investment firm (focus: hospitality project worldwide) based in Switzerland.
For reasons of confidentiality, an LOI (letter of intent) must be signed. Afterwards we are allowed to open the access of the data room with all relevant information for a successful investment for you.
A meeting of potential and existing shareholders is scheduled for mid-August 2023 in Chicago.
Of course, if required, a meeting on site in Chicago or in Zurich / Switzerland can be organised at any time.
I look forward to hearing from you!
Manuela Olmesdahl
Phone or whatsapp +41 76 376 61 11
E-Mail: office@manuelaolmesdahl.com
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