Investment Funds

BIGGEORGE 14. REAL ESTATE DEVELOPING REAL ESTATE INVESTMENT FUND

INVESTMENT POLICY

The Fund intends to purchase the real estate registered by the Budapest Government Office for the 11th District under title number 1996/23 in the urban area of Budapest 11th District, located at Budapest 11th District Maléter Pál utca 3, classified as an undeveloped area on non-agricultural land, with a total floor area of 3,366 m2, as well as the real estate registered by the Budapest Government Office for the 11th District under title number 1996/21 in the urban area of Budapest 11th District, located at Budapest 11th District Beregszász utca 6/b, classified as an undeveloped area on non-agricultural land, with a total floor area of 11,038 m2 (collectively: the Real Estate), at the market price established by the appraiser of the Fund, from the “Biggeorge 4” Real Estate Development Real Estate Investment Fund, which is also managed by the Fund Management Company.

The Fund intends to use the Real Estate to carry out a proprietary investment for the construction of 46 apartments, 6 retail units, 55 storage units and 40 parking spaces under the name of “Sasad Liget Apartments Phase 6”, and for the construction of 141 apartments, 139 storage units and 140 parking spaces under the name of “Sasad Liget Apartments Phase 7” (hereinafter collectively: the Project), as its own investment.

The Project has valid building permits (File Nos. VIII-1073-41/2017 and VIII-880-33/2017).

Sasad Liget Apartment House Phase 6:

The site will accommodate two building volumes (Buildings “A” and “B”), which will be connected below ground at basement level -2. Both buildings feature two tracts with open corridors, as well as open covered staircases designed to provide protection against rain effects. Owed to the proportionately distributed building volumes, the system of green spaces covers the area between the buildings, creating a relatively large contiguous inside garden at the centre of the site. Above ground level, each building has a ground floor + 4 floors. Due to the slope of the site, the buildings will be constructed with different interior floor levels. Access to the indoor garage is provided from Maléter Pál utca on a ramp. Pedestrian access is provided at two points from Maléter Pál utca and Pálinkás Antal utca. Ground-floor apartments have paved terraces linked to the green roof, as well as small gardens for private use, marked by plants. The areas in front of the service units on the ground floor are partly paved and planted. Most of the building volumes are oriented SE/NW, some of them look onto the public park to be constructed later, and some onto the inside yard of Phase V. In each of the two wings, an elevator will be installed with a capacity of 630kg (8 persons).

The planning application and construction drawings were prepared by Reload Építészstúdió Kft. The construction drawings are currently being reviewed and awaiting to be approved.

Construction work started on 29 January 2018 with grading operations and earthwork. The tender procedure including structural engineering, electricity and building engineering contractors is already under way. The project is scheduled to be completed in 2019 Q4 (including handovers to customers).

Sasad Liget Apartment House Phase 7:

The site will accommodate four building volumes (Buildings “A”, “B”, “C”, and “D”), which will be connected below ground at the basement level. Each having its own character, the four building volumes are adapted to the conditions on site and to optimal orientation. The buildings feature one or two tracts with open corridors, as well as open covered staircases designed to provide protection against rain effects. Owed to the proportionately distributed building volumes, the system of green spaces covers the area between the buildings, creating a relatively large contiguous inside garden at the centre of the site. Above ground level, each building has a ground floor + 4 floors. Due to the slope of the site, the buildings will be constructed with different interior floor levels Access to the indoor garage is provided from Maléter Pál utca on a ramp. Pedestrian access is provided at four points one from each of Maléter Pál utca and Beregszászi utca, and two from Pálinkás Antal utca. Most of the building volumes are oriented SE/SW, some of them look onto Sashegy. In each of Buildings “A” and “C”, an elevator will be installed with a capacity of 1,000kg (13 persons), in Building “B” an elevator with a capacity of 1,000kg (13 persons) and one with a capacity of 630kg (8 persons), and in Building “D” an elevator with a capacity of 630kg (8 persons).

The planning application and construction drawings were prepared by Reload Építészstúdió Kft. The construction drawings are currently being reviewed and awaiting to be approved.

Construction work started on 29 January 2018 with grading operations and earthwork. The tender procedure including structural engineering, electricity and building engineering contractors is under way. The project is scheduled to be completed in 2019 Q4 (including handovers to customers).

In the area enclosed by the building volumes to be constructed as part of Sasad Liget Apartment House Phases 6 and 7, the Fund will create a public park at its own expense.

The objective of the Fund is capital appreciation.

 

The Fund is a closed-end fund, with a maturity period of 24 months.

 

The Units are issued and placed privately, in accordance with the Capital Market Act rules on private placement.

 

Series “A” Units can be subscribed by Investors purchasing at least EUR 100,000, or an equivalent value, of the offered securities, and so their placement will be considered private under Section 14 (1) (c) of the Capital Market Act. The Investor’s subscription statement for Series “A” Units shall be valid where it relates to Units with a total face value of at least EUR 100,000, i.e. one hundred thousand euros (converted at the EUR exchange rate quoted by the NBH on the date of the decision on the placement), i.e. HUF 31,160,000 (thirty-one million, one hundred and sixty thousand forints).

 

 

Series “B” Units can exclusively be subscribed by those fewer than 150 persons listed in Annex No. 1. of the offering memorandum, and so their placement will be considered private under Section 14 (1) (b) of the Capital Market Act; however, the Investor’s subscription statement for Series “B” Units shall be valid where it relates to Units of at least HUF 10,000,000, i.e. ten million forints.

 

After the placement, neither Series “A” nor Series “B” Units can be offered for sale to the public and cannot be admitted to trading in a regulated market. As long as the Fund operates as a private placement fund (with no transformation to a public one), privately placed Units can be offered to Investors in accordance with and subject to the limitations set by the Capital Market Act rules on private placement.

 

Maximum and minimum placement volume

 

For Series “A”: HUF 1,248,000,000

For series “B”:HUF 312,000,000

 

BIGGEORGE 14. ISIN IDENTIFIER OF SERIES “A” CLOSED-END UNITS OF THE “BIGGEORGE 14” REAL ESTATE DEVELOPMENT REAL ESTATE INVESTMENT FUND:

 HU0000720743

BIGGEORGE 14. ISIN IDENTIFIER OF SERIES “B” CLOSED-END UNITS OF THE “BIGGEORGE 14” REAL ESTATE DEVELOPMENT REAL ESTATE INVESTMENT FUND:

 HU0000720735

 

Both Series “A” and Series “B” Units will be created as dematerialized securities by KELER Zrt.

 

Face value of Series “A” Units: HUF 100 i.e. one hundred forints.

Face value of Series “B” Units: HUF 100 i.e. one hundred forints.