The investment objective of the Company is to provide shareholders with attractive and stable returns, primarily in the form of quarterly dividends, by exposure to a diversified portfolio of real estate credit investments, predominantly comprising real estate loans and bonds.
To achieve the investment objective, the Company invests and will continue to invest in real estate credit secured by commercial or residential properties in the United Kingdom and Western Europe (“Real Estate Credit Investments”). The Real Estate Credit Investments may take different forms but are likely to be:
- Secured real estate loans, debentures or any other forms of debt instruments (together “Secured Debt”). Secured real estate loans are typically secured by mortgages over the property or charges over the shares of the property-owning vehicle. Individual Secured Debt investments will have a weighted average life profile ranging from six months to 15 years. Investments in Secured Debt will also be directly or indirectly secured by one or more commercial or residential properties, and shall not exceed a loan-to-value (“LTV”) of 85% at the time of investment;
- Listed debt securities and securitised tranches of real estate-related debt securities, e.g. residential mortgage-backed securities and commercial mortgage-backed securities (together “MBS”), (for the avoidance of doubt, this does not include equity residual positions in MBS);
- Other direct or indirect opportunities, including equity participations in real estate, save that no more than 20% of the total assets will be invested in positions with an LTV in excess of 85% or in equity positions that are uncollateralised. On certain transactions, the Company may be granted equity positions as part of its loan terms. These positions will come as part of the Company’s overall return on its investments and may or may not provide extra profit to the Company depending on market conditions and the performance of the loan. These positions are deemed collateralised equity positions. All other equity positions that the Company may invest in are deemed uncollateralised equity positions.