Find out More; Our people & our projects The Strategy The Fund - - PowerPoint PPT Presentation

Find out More; Our people & our projects

The Fund The Omnibus Property Fund invests primarily in four types of real estate sectors; Residential, Commercial, Special Projects and Rentals. The primary investment focus is on property developments where the Fund assists to finance a project and develop it into a turn–key property with a buyer and/or tenant already identified. In certain circumstances, the Fund may retain and manage the property, where market conditions and overall returns are favorable for investors. The Fund will identify, develop, execute and manage different property developments in strategically selected euro-zone countries. The Fund provides a unique opportunity for investors to participate in the pre-secured property development margins. Luxembourg Domiciled Luxembourg, a founding member of the European Union has a stable political and social environment and a strong economy. Luxembourg leads the way in investor protection and is the largest European fund domicile and the second largest fund centre in world, (US being ranked 1st) with over 2,400 billion EUR in assets under management. SICAV SIF – AIFMD regulated A SICAV SIF is an Luxembourg investment fund fully regulated by the “Commission de Surveillance du Secteur Financier (CSSF)” created in February 2007 via the Special Investment Funds law. A SIF offers a fully regulated investment structure that is flexible, efficient and tax optimized.

The Strategy

AIFMD regulated property fund

Fund Structure and Governance The Fund will be managed by its Board of Directors (the “Board”) in conjunction with the Investment Advisory Team (“Investment Advisor”). The Investment Advisor will be responsible for sourcing real estate investments through various specialised property advisers and making investment recommendations to the Board. The Board will examine proposals made by the Investment Advisor and will carefully review these proposals to make its decisions in accordance with the Investment Policy of the Fund. A three stage due diligence process will be applied to each project in order to guarantee that investment capital is invested wisely. Management Expertise The Fund’s management group has the experience and the financial strength to source and manage complex property transactions, projects, acquisitions and provide intensive on-going monitoring for each project. The Board of Directors and the Investment Advisor have an existing relationship with well-established real estate companies and property experts. The investment advisor utilises the services of a team of property experts that have unique industry contacts, that can provide access to off- market property projects. The investment advisor will engage the most suitable team of experts for each project type and location. Investment Process The investment process starts with the definition of the investment opportunities by the Investment Advisor within its current pipeline of projects. After first stage due diligence, which is carried out by the investment advisor and its property experts, the project is submitted to the Fund Board of Directors. The Board of Directors will carry out the second stage of the due diligence and evaluate the investment and will after an approval send full due diligence for each specific proposed project to the Fund’s custodian bank. The custodian bank will then apply its own due diligence process within the Luxembourg regulations. Only when this extensive 3 stage due diligence process has been completed can the fund enter into investment within a specific property project.

The Fund

AIFMD regulated property fund

Portfolio Diversification In order to ensure sufficient risk diversification, investments will be spread over several assets, processes, projects and companies in different countries and property sectors. The portfolio diversification will meet the strict criteria detailed within the regulatory rules of the CSSF regulator in Luxembourg. The number of investments within the Portfolio will vary at the discretion of the Fund Board of Directors. The Investment Advisor which will be continuously looking for prime property opportunities and may therefore buy or sell assets according to the Fund ‘s objectives and Investment Policy. The investment strategy will commence investment within the Swedish property market, where the fund has identified excellent investment opportunities and has arranged a panel of property industry experts to maximise investment returns. As the fund increases in size, it will source and arrange additional property transactions across Europe, utilising the services of top tier property experts, in conjunction with the same strict due diligence process.

The Fund

Why Sweden? Swedish property law protects the interests of all parties – investors, creditors, tenants and the public. It strikes a good balance between security, reliability, transparency and cost-efficiency. It is well suited for cross-border real estate investments. Sweden is considered one of the safest place to invest in properties. The underlying economy is strong and the demand for property housing/projects is very strong. The supply is also insufficient due to limited construction of housing for the last decade. The Swedish property market is very liquid and well regulated. Sweden is one of the most transparent countries in the world with a low level of

• corruption. All these characteristics suggests that Sweden, and in particular Stockholm, offers a good

risk/return ratio and is a suitable area for the fund to commence its trading activity. AIFMD regulated property fund

The Swedish Housing Market Macro Economy - Sweden The Swedish economy grew by 2.1% in 2014, still a strong growth in comparison with other European countries. The growth is mainly driven by domestic demand as well as investments into residential development schemes across the country. Forecast indicates an expected growth of just over 2.5% for 2015 and 2016. Outcome for inflation level is expected to remain low. Other macro-economic figures are moving in a positive direction: unemployment is decreasing; employed workforce is increasing, bankruptcy rates drops. Household savings ratios remain high, and consumer spending has picked up. The major prediction from national and international institutions is that Sweden will outperform in Europe in the short and medium term. The recent cuts of the repo rate along with QE measures from the Bank of Sweden indicates that Sweden is likely to be in a low interest rate climate in the short term and most forecasters do not expect interest rates hikes until 2017. It is therefore likely that the amount of equity targeting property will continue to increase and bank financing is also readily available at attractive rates. Climate for investments in real estate The transaction turnover amounted to SEK 25bn for the first quarter 2015, close to historical high volumes despite a small drop compared to same period 2014. The intensive activity on the real estate market in Sweden is partly due to sufficient amount of equity available for all types of property investments. With bond yields at low levels, domestic institutions have increased their exposure toward properties chasing higher returns and significantly increasing the supply of equity on the market. Banks are becoming more interested in lending against properties and are in some cases competing, leading to improving lending conditions with more favorable terms for property owners.

Why Sweden?

AIFMD regulated property fund

The Swedish Housing Market, continued. The cross border activity during the first quarter 2015 amounted to approximately SEK 10bn, slightly lower than expected. However, this is not an indication of lack of investor interest from international investors, but rather a result of foreign investors failing to outbid domestic investors in structured processes. Forward expectations are that transaction volumes will pick up as the interest for property investments is exceptionally strong from all types of investors. Although investor interest is mainly focused on prime assets in Stockholm, the shortage of prime products in Gothenburg and Malmö has led to a wider interest for secondary assets for all property types. Prime yields have hardened at a slower pace and secondary yields have hardened across most segments as investors are chasing investment options and also higher returns. Some Key stats:

• Prime assets remain favored by a majority of investors, but the lack of seller interest is likely to limit supply and many

investors are likely to widen their investment requirements in terms of sub segments as well as asset quality.

• The interest for alternative financing, such as bonds and preferential shares, has continued to grow and is expected to

grow.

• Prime yields could move in further, but the lack of prime assets is likely to push secondary yields downward resulting in a

reduced yield gap between prime and secondary.

• The increased appetite for property lending among banks has led to a competitive climate among lenders, leading to more

favorable terms for property holder.

Why Sweden?

AIFMD regulated property fund

The Swedish Housing Market The Swedish housing market consists of certain characteristics, differing somewhat from the regular scheme for other European

• countries. The three dominant forms of tenure in Sweden are rented dwellings, co-operative building society dwellings and home
• wnership. There is no housing segment corresponding to social housing. Students- and prime living for older is primarily part of

the regular or semi-regular rented dwellings. Rented dwellings and co-operative dwellings are mostly found in multi-dwelling buildings. Home ownership is typically associated with single dwellings and semi-detached housing. A cooperative building society dwelling is a specific "in-between" type of

• wnership. In this case a person/family pay for a membership in a building society which owns a dwelling unit with apartments,

and every member possess an apartment. Membership includes access rights to the apartment and a share in the co-operative as well as rights to buy and sell the apartment. Since 2009 it is possible to own your own apartment but this is still an unusual form of tenure. In accordance with the general housing policy the tax subsidies on housing are comprising; housing loans gains a tax subsidy of 21 per cent on the interest costs. Loans are available for buying apartments in co-operative building societies as well as for home

• wners. Conditions in mortgage and other financial facilities are similar for the two dwellings. Tax subsidies also comply with real

estate companies. Housing availability differs between different regions of the country and between cities, especially between the metropolitan areas and smaller cities. The overall trend in is that housing shortages is a growing problem in the larger cities and in the university cities. However, during the last years the housing shortages is spreading to smaller cities and markets depending on population growth together with other factors as rising prices on home-owning and low volumes of new production. The market consists of some 40 per cent rented dwellings, 20 per cent co-operative building society dwellings and 35 per cent home ownership, while a smaller proportion is due to other dwellings. The rented dwellings are divided into private owned real estate companies and public enterprises, with half of the total market respectively. AIFMD regulated property fund

Why Sweden?

The expert team Omnibus have employed the services of an expert team of property specialists, providing, broad, in-depth experience within real estate investments and urban development. Experience is based on firm knowledge of all major programs and a well-connected network of high-level real estate owners, land owners, public authorities and developers. The objective is to bring our clients attractive and profitable investments by cultivating developers, real estate holders, public entities, politicians and other key elements. Together the team brings 30 years of experience from establishment support, real estate development, executive management and decision-making within the private as well as the public sector. Successful investment and management in the Real Estate sector is dependent access to, the policy making structure as well as the policy makers. The local city-authorities are providing planning permission, construction permission, ground lease and the major part of all land acquisition. We have held several high-level positions resulting in experiences that now will be valuable in order to manage, support and advice in investing in the Real Estate sector. The Omnibus property team has many years of experience within the most relevant areas of local Government decision-making

• processes. This includes, city planning processes, land development permissions and other formally regulated processes, as well as

consultancy work for real estate development and acquisition advice. Members of the Omnibus property team have years of service as high ranked civil servants and policy makers. This delivers to the fund great knowledge from the public sector and provides us with high-level access to policy makers and high ranked officers. This area of expertise is designed to provide Omnibus with unique access to attractive investment opportunities.

Property experts in the fund

AIFMD regulated property fund

The team

Filip was born 1969 in Stockholm, Sweden. After finalizing his university studies he started his profession in the banking industry, and has 20 years experience within financial markets as currency trader, stock broker and asset manager. Co-founder and Chairman of the Board of Studentbostadsfonden AB (Student Housing Fund) which is owner of a newly built student accommodation complex in Stockholm consisting of 284 student apartments. Filip is the Co-founder of Omnibus Property Fund, a Luxembourg Regulated AIFM Investment Fund. Filips focus is on assembly of the analysis of the real estate teams, first phase DD and development of investment strategy and pipeline.

Filip Gil

AIFMD regulated property fund Stefan was born and educated in Sweden. After completing his Masters in Economics, Stefan has continued his studies resulting in numerous professional diplomas as well as a variety of MBA qualifications including, risk assessment, asset management and financial instruments from the International University of Monaco. After university Stefan has held various high level positions at international financial organisations. As Co-founder of Omnibus Property Fund and a member of the board of directors, his expertise in portfolio construction using a wide variety of asses classes, including private equity property transactions, is crucial in order to sucessfully manage the fund. Stefan is considered a specialist in fund management and being able to oversee and delegate the operations of a regulated fund. Stefan is also a Co-founder of Columna Commodities Fund, a Luxembourg domiciled fund with a successful track record since the start in 2013.

Stefan Gustafsson

The team

Julien was experienced manager in the Alternative Investment advisory practice of Ernst & Young. He was involved in fund structuration, back & front office operations, process and transaction activities, including due diligence, valuation, investment monitoring and risk management for Private Equity & Real Estate Funds. Julien has a strong background in finance and investment process which he gained through working for various well-known Banks and Investment Funds. He’s got a Master of economics, with majors in mathematics.

Julien Renaux

Luc has held responsibilities for more than 20 years at various international banks and investment funds. He is responsible for Luxembourg Fund Partners’ Investment Management Operations. Luc owns a deep knowledge of the investment fund industry having worked for the major financial institutions such as Chase Manhattan Bank, State Street Bank, the Royal Bank of Canada. Luc’s expertise covers both traditional and alternative investment strategies, including private equity and real estate investment

• structures. He is actively involved in different local and international investment fund group expertise.

Luc Leleux

AIFMD regulated property fund Has co-founded Studentbostadsfonden AB (Student Housing Fund) and currently the company's CEO. Former CEO of Ehrling & Partners (Real Estate investments), Daidalos Consulting (Management Consulting). Former Vice President of Plant Growth AB (Product development & Supply Chain Consulting), Plant Growth Business Advisors (Turn Key Product Development). Strong focus on Business Development and Project Compliance. Master in Economics from Stockholm School of Business and studies in System Management at Royal Institute of Technology in Stockholm

Martin Berchtold

The team

Stefan Lidgren

AIFMD regulated property fund Has over 15 years of experience of real estate development, both residential and commercial buildings, and is currently project-and property manager at Studentbostadsfonden AB (Student Housing Fund). Former CEO of Rotpartner Stockholm AB (Real Estate Consulting), project developer and project manager at Besqab AB, Einar Mattsson AB and JM AB (Real Estate Developing) responsible of developing projects with turnovers around 300-500 million SKR. He has a degree in civil engineering from the Royal Institute of Technology in Stockholm. Has inter alia, being Chairman of Svenska Bostäder (Sweden´s largest municipality owned real estate company), Head of Urban Development at Centrumutveckling (then the largest retail and shopping center consultancy company in the Nordics) and Swedish Head of Business Development at Corner- stone (globally the 9th largest real estate investment manager, incl Nordic Retail Fund with assets of 9,5 BSEK).

Rolf Dickson Könberg

Has inter alia, being Chairman of the two municipality owned real estate companies in Solna, political adviser to the Mayors of Solna and Stockholm and CEO for the Real Estate Department in the City of Stockholm.

Torbjörn Johansson

Current investment pipeline is focused on the Residential and Commercial sectors, with our extensive due diligence now completed for various projects. Developments Residential Commercial Rentals High Yield Residential Commercial

PROJECT PIPELINE

AIFMD regulated property fund

• Student housing
• Apartments
• No current projects
• No current projects
• Burger King
• Dollar Store

In below projects we have presented the figures in EUR instead of SEK and we have used the exchange rate of 10 SEK to 1 EUR

PorOolio project S10

Project Category. Development Residential, Student housing development

Project number: S10 Location: Sweden, Stockholm Time to invest: Phase 1 This is a student housing development project of 300 student/youth apartments. The land will be leased from the municipality for a period of 15 years. A rental agreement with the municipality is in place for each apartment/unit. Amortization of bank and EQ loan, interest payments and

• perating costs will be covered by the rental income. The

project will be developed with pre-produced modules that can be moved after 15 years. The development will be managed by a senior project management team who are experienced in modular housing within Stockholm. Project Statistics:

• 7,500 sqm leasable area
• 300 apartments with a average size of 25 sqm
• Rental income 3,000 SEK/sqm/year. Total 22M SEK

per annum PROJECT KEY RATIOS

Project type: Student accommodation Project Budget: 15 000 000 EUR Bank financing: 10 500 000 EUR Fund financing: 4 500 000 EUR Return on Investment: approx. 11% p.a Investment duration: 10

AIFMD regulated property fund

Project Category. Development, Residential, Development

Project number: R11 Location: Sweden, Gävle Time to invest: Phase 1 This project is ready for immediate development, with all relevant permits in place. A Letter of Intent will be signed with a buyer before construction starts to ensure a profitable exit strategy is in place. Development will be managed and led by a senior project management team. Project Statistics:

• 5,000 sqm leasable area
• 128 apartments, with an average size of 40 sqm
• Rental income 2,000 SEK/sqm/year. Total 10M SEK

per annum. PROJECT KEY RATIOS

Project type: Apartment Development Project Budget: 14 000 000 EUR Bank financing: 9 800 000 EUR Fund financing : 4 200 000 EUR Return on Investment: 47 % (23,5 % p.a.) Investment duration: 24 month

AIFMD regulated property fund

PorOolio project R11

Project Category. Rentals, High Yield Dollar Store Facilities

Project number: HY12 Location: Sweden, Midsize town Time to invest: Phase 1 Investing in a newly built commercial property with a well- known brand as an AAA rated tenant, enabling the fund to secure attractive levels of rental income/cash-flow at a favorable risk/return ratio. Return will be based on, interest rate on the equity loan, dividends and asset value growth. The aim is to reach a critical volume of establishments and thus reach a higher value on the total assets. The fund will then source a purchaser within the international market. The properties will be purchased at yield levels from 6.5-7.5 %. Bank financing will increase the Funds ROI. Project stats:

• 10 year rental agreement

PROJECT KEY RATIOS

Project type: High Yield Rental Project Budget: 3 200 000 EUR Bank financing: 1 920 000 EUR Fund financing: 1 280 000 EUR Return on Investment: approx. 10% p.a Investment duration: n/a

AIFMD regulated property fund

PorOolio project HY12

Project Category. Rentals, High Yield Burger King Facilities

Project number: HY13 Location: Sweden, Midsize town Time to invest: Phase 1 Investing in a well-known international brand on good locations with AAA rated tenants enables the fund to secure attractive levels of rental income/cash-flow at a favorable risk/return ratio. The properties will be purchased at yield levels from 6,5-7,5 %. Bank financing will leverage up the Funds ROI. Project Statistics:

• 20 year rental agreement

PROJECT KEY RATIOS

Project type: High Yield Rental Project Budget: 1 800 000 EUR Bank financing: 1 080 000 EUR Investment Amount: 720 000 EUR Return on Investment: approx. 10% p.a Investment duration: n/a

AIFMD regulated property fund

PorOolio project HY13

10,7 MEUR 6,5 MEUR

Fund Volume

High Yield High Yield

Student acc.

ResidenZal TBA TBA

€3M €10M €20M

2 MEUR