Investment Funds

Biggeorge 5. Real Estate Development Real Estate Investment Fund

INVESTMENT POLICY

The Fund intends to purchase the real estate registered by the Budapest Government Office for the 14th District under title numbers 34145/2 and 34146/2 in the urban area of Budapest 7th District, located at Budapest 7th District Dob utca 34–36, classified as an undeveloped area on non-agricultural land, with a total floor area of 2,153 m2 (“the Real Estate”), and use the Real Estate to carry out a proprietary investment for the construction of 125 apartments, 4 shops, 37 storage units and 75 subterranean parking spaces by the name of “Elisabeth Residence” (“the Project”).

The Seller has obtained the Planning Board’s positive opinion on the Project to be implemented. The Real Estate has all utilities installed and is lined by blank walls in full length on 2 sides.

Plans include the construction of compact and comfortable, quality apartments, predominantly for students and young people, with less focus on families, and multigenerational arrangements in the case of 7 apartments; on the ground floor, the construction of 2 retail units and 2 exhibition spaces in compliance with regulatory requirements, and granting pedestrian right of way longitudinally across the yard of the building over a limited period.

Essentially, Elisabeth Residence offers apartments optimised for investments. The project offers buyers the unique opportunity that Biggeorge Serviced Apartments Zrt., a subsidiary of Biggeorge Property Zrt., leases back the apartments for utilisation purposes in a number of arrangements providing attractive returns. Approximately 50% of prospective customers who signed a registration contract also signed a pre-lease agreement to confirm their interest in making use of this investment opportunity.

The fund targets capital growth. 

Shares are issued and distributed through private placement in accordance with the requirements of the Capital Market Act for private placements. The distribution of shares in the “A” series qualifies as private placement under Section 14(1)(c) of the Act, whereas the distribution of shares in the “B” series qualifies as private placement under Section 14(1)(b) of the Act. 

The Fund is a closed-end fund and has a duration of 24 months. 

In the “A” series a total of 8,600,000 shares were issued with a nominal amount of HUF 100 each and an aggregate nominal amount of HUF 860,000,000. In the “B” series a total of 2,150,000 shares were issued with a nominal amount of HUF 100 each and an aggregate nominal amount of HUF 215,000,000. 

The shares were distributed as part of a subscription process. During the subscription process, a valid subscription commitment could be made for shares of an aggregate nominal value of at least EUR 100,000, that is one hundred thousand euros or equivalent in respect of the “A” series, and for shares of an aggregate nominal value of at least HUF 10,000,000, that is ten million forints in respect of the “B” series. The amount specified in EUR was converted using the official foreign exchange rate published by the MNB as applicable on the date of the decision concerning the distribution; accordingly, the lower limit of a valid commitment was for the subscription of shares in the “A” series of an aggregate nominal amount of HUF 30,652,000, that is thirty million six hundred and fifty-two thousand forints based on the official EUR rate of HUF 306.25 published by the MNB for 23 September 2016.

With regard to the fact that the shares are not distributed publicly, they can only be sold privately in the secondary market as well. As the Fund is a closed-end fund, shares cannot be redeemed at the Investor’s initiative during the term of the Fund; however, the Fund Management Company may withdraw the shares in accordance with the CIU Act and the Management Policy.

ISIN code of Biggeorge 5 Real Estate Development Real Estate Investment Fund shares in the “A” series: HU0000717939
ISIN code of Biggeorge 5 Real Estate Development Real Estate Investment Fund shares in the “B” series: HU0000717947

Shares in both series “A” and “B” are created by KELER Zrt. as dematerialised securities.

Shares in the “A” series have a nominal amount of HUF 100, that is one hundred forints each.
Shares in the “B” series have a nominal amount of HUF 100, that is one hundred forints each.