Investment Criteria

The four criteria that any property has to meet before the Directors will acquire it are:

1. Underlying quality of the asset

• Attractiveness and sustainability of the location
• Well designed and constructed, and in a good state of repair
• Must have clear title with no restrictive easements or liens

2. Liquidity

• Sufficient net yield to service interest costs and capital repayments
• Attractiveness to other investors, i.e. to be able to sell on
• Non-recourse finance available from Swedish Banks at competitive rates

3. Provision of stable cash flow

• Tenants (residential and commercial) must be financially secure
• Lease must be transparent and well constructed
• There must be a reasonable spread in lease renewal/break dates

4. Capital growth potential

• Opportunities for value creation through renovation and/or development
• An ‘Off Market’ purchase
• Diversify the overall investment across residential, commercial and development projects to maximise gearing, rental return and overall capital growth potential