OTP launches OTP Real Estate & Construction fund with quarterly distribution of dividend

OTP Asset Management has launched OTP Real Estate & Construction (OTP REC) fund, the first sectorial fund in Romania that offers international exposure on real estate and construction. The fund is meant to be a viable alternative to classic real estate investment with quarterly distribution of dividend and coupon income.

The fund, according to EFAMA standards, is in the category of flexible diversified funds. OTP Real Estate & Construction aims at a strategic allocation where at least 75 percent of the assets are invested in shares and bonds issued by companies active in real estate and construction.

OTP Real Estate & Construction is addressed to retail clients and institutional clients who are willing to accept medium risk and who want a liquid investment with exposure to the real estate market. The recommended investment period is 1 to 3 years.

With the launch of OTP Real Estate & Construction, the company offers an alternative solution for the Romanians’ appetite to invest in properties. The fund is focused on generating and distributing the highest revenue, which makes it a passive income instrument. As a person purchases a studio / apartment in order to get a certain amount of rent money, just as an investor in OTP Real Estate & Construction can receive quarterly income generated by dividends and coupons.

In the case of a classic real estate investment that requires significant amounts, the initial investment in OTP REC is the equivalent of a fund unit (a face value of RON 500), and the amount for subsequent investments is RON 50.

Investors holding fund units on the first working day of April, July, October and January are entitled to receive distribution quarterly.

The payment of the distributable income is dependent on the income received by the Fund. If this value is less than RON 1 / fund, it will not be distributed and will accrue with the next quarter / quarter revenue and be distributed when it exceeds RON 1 / fund unit.

The Fund will invest in real estate and construction companies, such as REITs (Real Estate Investment Trusts) in Western Europe and the US, run by professionals with decades of experience at an international level.

The new investment fund is a viable alternative to classic real estate investment, which many Romanians prefer. OTP Real Estate & Construction is the first sectoral fund in Romania to offer international exposure to real estate companies that operate or own malls, office buildings, logistics, storage and commercial spaces. From the investment universe of the fund, companies like Simon Property Group (US), Vonovia (DE), Unibail-Rodamco-Westfield (FR), NEPI Rockcastle (ZA) Globalworth (RO), Strabag (AT), Astaldi (IT) stand out.

OTP REC offers investors immediate liquidity at any time through a simple redemption of fund units, compared to direct real estate investments that involve a longer liquidation process.

Investing in the OTP Real Estate & Construction Fund assumes a number of benefits for customers who want to earn regular income and invest at the same time in the real estate market. Here are some of these benefits:

5 percent reduced tax on income distributed by the Fund, against a 10 percent tax on rental income. The 5 percent tax is withheld at source;
Fund zero transaction cost (subscription / redemption) to the high costs of buying real estate (notary costs, etc.);
Diminishing the risk of depreciating the investment price due to the unfavorable development of urban development. The Fund has a very diverse indirect exposure, both from the regional point of view and from the types of real estate;
Elimination of the cost over time of financial costs related to the administration and operation of real estate, as well as the risks of incurring unforeseen expenses.

Present on the local market in 2008, OTP Asset Management Romania SAI S.A. is in the top of the most important investment fund managers in Romania, according to the assets under management. The company manages a diversified range of investment funds, offering OTP Expert, OTP AvantisRO, OTP Global Mix, OTP Premium Return and OTP Euro Premium Return in the real estate sector through OTP Real Estate & Construction, but and investments in government bonds and bonds through OTP Bonds, OTP Euro Bond, OTP Dollar Bond and OTP ComodisRO. Currently, the company serves over 8,200 retail and corporate clients in nine open-end investment funds.

DMCA

PROTECTED