Taaleri Real Estate Development Fund redevelops properties, either repurposing or upgrading them. The properties will mainly be for residential use. The fund also builds largely privately-funded apartment blocks, taking advantage of the Finnish RS system.
The fund is closed and no longer accepts new investors.
What is a profit sharing bond?
Profit sharing bonds are a type of bond, for which the interest rate is specified in the terms and conditions to depend on the issuer’s business profits. This is why profit sharing bonds are often called dividend bonds, or participating bonds. The interest of a profit sharing bond can be tied to the profits of the entire business or a part of it. To understand the risks and rights related to each profit sharing bond, it’s important for the investor to always read the terms and conditions thoroughly. For general information about profit sharing bonds as an investment asset, please see the Taaleri Investor’s Factfile.
Taaleri Real Estate Development Series C Profit Sharing Bond
Taaleri Real Estate Development Series C LP is issuing a profit sharing bond, investing the raised capital to the fund-shares of Taaleri Real Estate Fund LP (“Fund”). The Fund’s capital, meanwhile, will be invested in real estate development projects in Finland. The maximum external capital that the Fund may accept is 80% of its investments’ purchase price.
The investment in the Fund forms practically the entire business of the issuer. This is why the risks and returns of the profit-sharing bond are very similar to those of the Fund, and the investor should also read the terms and conditions of the Fund carefully before making the investment decision.
Once the Fund’s business starts to generate free cash flow after operative costs, financing costs and administration fees, it will be distributed to the Fund’s investors as distributed assets (incl. Taaleri Real Estate Development Series C LP). These will be further distributed as interest and principal payments to the investors subscribed to the profit sharing bond.
For Whom and Why
Profit sharing bonds suit customers who prefer long-term investments and can tolerate risk. The investment is made in a closed-end fund with a maturity period of up to 10 years, which may not be able to pay out returns to its investors in its first years. In the case that the Fund’s business is not profitable, the Fund can pay no returns to the investors.
Product Information
Investments in the Fund are made indirectly by subscribing to the profit sharing bond issued by one of the partners of the Fund (Taaleri Real Estate Development Series C LP). The minimum investment is 10 000 euro. You will find the prospectus of the profit sharing bond, complying with the Securities Markets Act, in the Documents section.
Basic Information About the Profit Sharing Bond
| Security | Profit sharing bond of the Real Estate Development Fund |
|---|---|
| ISIN | FI4000113089 |
| Type of Security | Bond |
| Reference Currency | Euro |
| Issuer | Taaleri Real Estate Fund LP |
| Feeder Fund Market | Taaleri Private Equity Funds Ltd |
| Minimum Purchase | 10 000 euro |
| Issue Price | 100 % |
| Entry Price | 1% of nominal fee |
| Interest | Interest payments will be based on the profits of the issuer’s business. There are no fixed-rate interest payments. |
| Interest Payment | The potential interest from the previous accounting period will be paid yearly on May 15th. |
| Maturity Date | The bond has no fixed maturity date. It will, however, be repaid at the latest on the interest due date of the accounting period following the final asset distribution of Taaleri Real Estate Fund LP. |
| Investment Assets | Taaleri Real Estate Fund LP will only invest in Taaleri Real Estate Fund LP partner share, in bank deposits of deposit banks licensed to operate in Finland, and the fund-units of the special investment fund Taaleri Cash Fund. |
| Subscription Period | 5.11.2014 – 14.5.2015 |
| Subscription Acceptance | Every other Friday from November 7th 2014 |
| More Information | For more information about the profit sharing bond, please see the prospectus in the Documents section. |
Administration Fees
| Entry Charge | 2 % |
|---|---|
| Administration Fee | 1.25 % p.a. |
| Performance Fee | 30 % |
| Administration Fee of the Special Investment Fund Taaleri Cash Fund | 0.20 % p.a. |