KEYS VALUE ADDED III
French Limited Partnership (Société de Libre Partenariat [SLP])
INVESTMENT POLICY
The Fund is aimed at :
- Developing a portfolio of one or several controlling interests for the most part in all privately held companies (hereinafter referred to as “Companies”), mainly focused on acquiring real estate assets to create value then sell them on.
- Providing an opportunity to achieve maximum returns on the real estate market in France and Europe.
The Fund indirectly seeks the marketing of real estate assets with solid fundamentals, at discounted prices, by sellers who are forced to sell their assets, who prefer to invest in other markets or who wish to trade off.
The Fund indirectly seeks to capture this risk premium and create added value in the short/medium term by repositioning the real estate concerned in their market.
The repositioning of these real estate assets focuses on the following priorities: renovation, optimising the occupancy rate and lease conditions, compliance, and change of use.
The real estate assets will mainly be located in the Greater Paris region and in major regional cities. However, the Fund may capitalise on investing outside France, up to 25% of the amounts received.
The majority of real estate transactions last between one to three years (effective from the purchase date to the sale date of the asset).
Reserved for professional (listed in article D.533-11 of the French Monetary and Financial Code(1)) and similar investors (i.e. those whose initial subscription is €100,000 or more as well as banks and other investment service providers acting within the framework of an individual management agreement) in France.
It concerns an Alternative Investment Fund (AIF), unauthorised by the French Financial Markets Authority (Autorité des marchés financiers [AMF]), whose operating guidelines are set by its Statutes.
(1) Please see the Fund’s Statutes for more information.
The Value Added strategy consists in identifying delisted buildings in prime locations with value and liquidity accretive potential, largely owing to their repositioning.
Working closely with its partners and real estate developers, Keys Asset Management Group harnesses the combined expertise in these stages in order to develop small or large-scale renovation projects in time and on budget.
Asset revaluation levers used by our fund managers :
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Knowledge of the market and local players
Acquisition of high-potential real estate assets at a discounted price
Focus on value creation
Goal to maximise returns
LEGAL FORM
French Limited Partnership (Société de Libre Partenariat [SLP])
ASSET MANAGEMENT COMPANY
Keys Real Estate Investment Management, authorised by the AMF
COMMERCIAL LAUNCH
2 September 2019
ISIN CODE
FR0013437985 (Unit A)
MINIMUM INVESTMENT (UNIT A)
€135,000: o/w €100,000 in unit A and 35% of subscription granted in Current Account advances.
Please see the Statutes for more information.
FUND LIFE AND LOCK-UP PERIOD
6 years, effective from the first day of subscription (unless dissolved in advance, as outlined in the Fund’s Statutes). Potential extension by the Asset Management Company for two successive periods, each lasting a year.*
DEPOSITARY AND REGISTRAR
RBC Investor Services Bank France
ACCOUNTING SERVICES
RBC Investor Services France SA.
STATUTORY AUDITORS
PricewaterhouseCoopers (PWC), France
NET ASSET VALUE (NAV) CALCULATION FREQUENCY
Semi-annually*
ALLOCATION OF DISTRIBUTABLE AMOUNTS
Capitalisation
REPAYMENT OF CURRENT ACCOUNT ADVANCES
Repayment over 24 quarters from the quarter following the subscription payment.**
BENCHMARK CURRENCY
EUR
*Please see the Fund’s Statutes for more information.
**Please see the Agreement on Current Account Advances.
MAIN FEES PAYABLE BY THE FUND (NON-EXHAUSTIVE LIST)*
*Please see pages 45-47 of the Fund’s Statutes for more information regarding all applicable fees.
- Management fee (Unit A):
4% including (incl.) VAT of the Fund’s net assets per annum for the first 24 months, then 2% incl. VAT per annum - Remuneration for Administrative and Accounting Manager Representative:
€9,600 incl. VAT per annum - Remuneration for General Partner:
calculated annually - Remuneration for Depositary:
0.048% incl. VAT max. of the Fund’s quarterly net assets - Remuneration for Statutory Auditor:
Set annually based on amount of investment and due diligence. - Organisation fees:
Limited to a lump sum equal to €150,000 - Profit-sharing for asset management company:
20% of the Fund’s returns including current account advances. This follows payment (i) to holders of units for the amount invested in respect of the subscription of their units and a preferential payout 1 equivalent to an annual return of 8%, net of fees (ii) to unit C holders for alignment income.
1 Preferential payout is the amount that must be paid to holders of units. Holders receive a preferential payout for an annual rate of 10% capitalised prior to remuneration from the asset management company. Please see page 12 of the Fund’s Statutes for more information.
NAV VALUE
(N/A)
Capital loss risk
Related to the lack of money-back guarantee on the capital initially invested in the fund and the current account advance.
Real estate risk
Likely to cause a decline in value due to changes in real estate markets.
Discretionary management risk
This relates to poor performance by the selections made by asset (or operations) managers.
Fund underperformance risk
Related to the market situation or the asset management company’s failure to assess opportunities.
France