Lux Real Estate Investments S.A. is a Luxembourg-based issuer of high fixed income, investment-grade, stock-listed real estate investment bonds.
Our capital protected bonds are yielding significantly higher than money market instruments and sovereign bonds and have substantial less exposure to market risks than stocks, commodities, currencies and other unsecured instruments. Our bonds generally outperform even conventional real estate vehicles like REIT's and property investment funds that primarily invest in long term, marginal income-producing properties. The yields of these instruments largely depend on uncertain factors like occupancy rates, lease terms, maintenance and management costs as well as unpredictable market risk. .
Our investment strategy is highly diversified and focused on frequent and short term capital gains, unlocking the upside potential in both new development projects as well as in existing real estate. For instance we focus on trading of significant discounted real estate portfolios originated from reputable sources like banks. We aim for shortest possible investment cycles to be able rapidly capitalize this potential and redeploy returns and compound the profits We further improve yields deploying our non-utilized cash to short-term secured lines of credit i.e. bridge finance, construction loans, re-financing, etc in which we retain at all time a senior position. This investment strategy generates relative high yields and the frequent conversions of assets into cash provides a steady cash flow required to pay our bondholders the agreed fixed coupon rates and payouts in accordance with payout schedule.
Lux Real Estate Investments is a true financial innovator. Besides our unique investment and risk management strategies, our innovation efforts have caused a major shift in the approach to funding of real estate investments. Real estate investors often miss out on lucrative deals, due to lack of equity or inability to timely obtain financing from lenders. Moreover they are unable to attract additional capital and grow their portfolios having exhausted their lending capacity and/or pledged all collateral to lenders. Lux Real Estate Investments provides a solution to such investors offering perpetual, on-demand capital to restructure equity and debt positions, unlocks surplus collateral value and significantly improve their closing rates and growth of the investment portfolio.