Rating

Real Estate

Real estate investment – which investment is really worth it

While property prices continue to rise, interest rates remain historically low. For many investors reason enough to invest their savings in “Betongold”. But the supposedly safe investment can certainly have its problems. Decisive for a sustainable return is a top location as well as a professional management of the property.

Real Estate Investment

Real estate is more popular than ever before as a long-term investment. In contrast to the self-employed detached house, investors are primarily interested in objects that can be used by several parties. The clear goal is to achieve safe returns – either through rental income or through repayments. What is often overlooked in a real estate investment, however, is a potential depreciation due to factors that are difficult to foresee. If, for example, legal regulations change, the necessary modifications and refurbishments can entail high costs. It is very difficult for private investors to keep an overview and to assess and calculate the risk as well as potential losses in earnings. It should not be forgotten that a real estate investment can only be expected after a few years.

Manage your own property or let it manage by professionals?

A real estate investment is nevertheless worthwhile if these factors are taken into account in advance. To this end, a prognosis on the estimated value development of the property should be drawn up, possibly with professional assistance. If the recoverable income covers both current costs, capital costs and potential impairments, this is a relatively secure investment.

Another very popular investment option is fixed-interest bonds. In this variant, a company collects the money of potential investors and consolidates it in a bond. The proceeds of the bond go into the revaluation of long-term rented properties in prime locations. Investors have the advantage of being able to participate with relatively small amounts of money.

Le Bijou enables investments starting at as little as CHF 10,000

It should be noted that there are open and closed real estate funds. Shares in open-ended funds may be purchased and sold at any time, while the purchase of units of a closed-end fund is only possible within a certain placement period. The first real estate fund of this kind was established in Switzerland in 1938, and the first open-ended real estate fund was launched in Germany in 1959. The creation of a legal framework in 1969 ensured the further spread of the investment opportunity. In this respect, there is a secure legal framework for this type of investment.
However, the market was haunted by a serious crisis in 2004: The price increases of 4 to 5 percent annually recorded between 2000 and 2003 stagnated, and a number of distributions fell. The reason was declining rental income in various commercial and office properties. The financial crisis from 2007 also had a negative impact on a number of open-ended real estate funds.

The Le Bijou Bond offers 7.125% return!

It is the eternal mantra of the real estate sector: location, location, location. This is the main reason for the purchase. In fact, everyone wants to live where it is invaluable – in “good location”.
This is where the innovative concept of Le Bijou starts: Le Bijou invests exclusively in top locations and transforms apartments into the hotel of the future.

Alexander Hübner; Immobilien Investment - Le Bijou - The Hotel Reinvented

Alexander Hübner, CEO Le Bijou HRM AG

„We examine every destination very precisely according to their growth potential and – according to the demand – are able to launch more units into the market in a short time. This approach has two decisive advantages: market leadership at the respective location and safe price control. This form of market cover also means a lower risk for the investor. Our top apartments are currently about 92% booked.“

 

 

 

The concept of Le Bijou can be easily scaled – and thus the yield!

Le Bijou works at every trendy location in the world. The brand is easily adaptable to local conditions and can also expand strongly with franchise-like models. In order to establish Le Bijou’s flagship projects and to increase brand awareness, Le Bijou is expanding its network of strategic locations and top locations.

The unique thing about Le Bijou

Le Bijou is the first company to digitize the hotel sector. Le Bijou combines proven and already successful elements of other revolutionary concepts like Airbnb with a whole new kind of travel comfort. The innovative apartment concepts and the breakthrough service software „James“ make Le Bijou an attractive hotel alternative.

Sources: Wallstreet Journal and focus.de

Le Bijou – the Real Estate Investment at a glance

 

Coupons Subscription period Payment

7.125% p.a.

22/03/2017

31/03/2017

Payable every quarter on 31 March, 30 June, 30 September and 31 December, first payment on 30/06/2017 and final payment on 31/03/2022. Received by post or physically delivered by 8 p.m. at the latest. Payment deadline for bond investors.

 

Exit of an investor Maturity 35% withholding tax

2x Pull option

31/03/2022

Taxable

First pull option after 12 months, second pull option after 36 months. Until 31/03/2022, 60 months as of 31/03/2017. Paid by Issuer.

 

Denomination Status Ranking

CHF 10,000

Pari passu

Subordinate

The minimum investment is CHF 10,000 nominal value or a multiple hereof. The Bonds and Coupons constitute unsecured and subordinate obligations of Issuer and are ranked equal amongst each other (pari passu). The Bonds and Coupons are subordinate to all current and future liabilities of the Issuer which are not subordinate or subordinated to the bond issue.

 

Securitisation Listing Transfer Restriction

Bearer

Private

Tradable

The Bonds are issued as bearer securities. The Bonds are not listed for trading on a stock exchange. Written consent by the Issuer is required. The Issuer may refuse consent for certain reasons.

 

Law / Jurisdiction Sale Restrictions Issuer / Registered Office

Swiss law

Switzerland

Zug

Swiss law applies, place of jurisdiction isZug. Offer, sale, resale, delivery, allotment, acquisition and transfer only inside Switzerland. Le Bijou Hotel & Resort Management AG, Neugasse 21,6300 Zug, Switzerland

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