Lux Real Estate Investments S.A. is a Luxembourg-based bond issuer with fixed-term/income debt instruments that are backed by a mixed portfolio of first class European, Canadian and US real estate assets, both existing and new developments. The bonds have coupons ranging from 10 to 15 years and 2% to 4% respectively. The anticipated rating of the bonds is investment grade. The bonds are listed at the Dusseldorf Exchange Open Market (Börse Düsseldorf Freiverkehr). https://www.boerse-duesseldorf.de/
The inaugural series of bonds, denominated in Euros, United States Dollars, and Canadian Dollars, were issued on July 15, 2024, with an aggregate face value of approximately 2 billion Euros and these bonds were fully subscribed on July 24, 2024. The Offering Period is closing on October 7th, 2024 at 12pm.
A second series of bonds is slated for issuance on October 14, 2024. Further issuances are planned for November and December 2024.
Our capital protected investment 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 instruments. Our bonds generally outperform 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 regulated rental policies, occupancy rates, lease terms, maintenance and management costs and unpredictable market risk.
Our investment strategy is highly diversified and focused on long term term capital gains, unlocking the upside potential in new development projects as well as in restructuring existing real estate objects. We focus also on trading of significant discounted distessed real estate portfolios originated from reputable sources like banks, private equity firms, property funds and property developers. 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.
