The RAN 3 – FCR private equity fund that was created to enable a broader scope of investors to access our Portuguese real estate activities and deliver enhanced portfolio diversification over a selection of real estate strategies.
Investment Criteria
The investment committee has set the following priorities:
- Focus on conventional residential, offices, hospitality assets
- Emphasis on Portugal (>70%) with opportunistic targets in the UK and France
- Investments adhering to our sustainability parameters
- Advantageous entry point
- Privilege real estate with higher liquidity: good urban location, adequate condition, market relevance
- Deal complexity in proportion to expected returns
- Investment tailored to respond to identified demand
- Privilege assets with identifiable differentiating advantages
- Low leverage with LTV <50%
Fund Strategy
CORE plus
60% target weighting
Companies that buy and hold real estate with the ability to add value through asset restructuring.
VALUE ADD
30% target weighting
Companies that acquire real estate assets requiring a medium to high level of intervention.
OPPORTUNISTIC
10% target weighting
Companies targeting more pragmatic real estate investments with higher risk profiles.
Investors
The fund has two share classes specially structured to accommodate the priorities of both institutional and Golden Visa investors.
Golden Visa
In line with the priority of capital security, the first distribution from the fund is always the Golden Visa capital.
Then Golden Visa share class will also benefit from an uncapped performance of 40% above the privileged hurdle rate of 3%.
Institutional investor
As a result of being second in the capital distribution chain the institutional investors will accrue a privileged hurdle rate of 3% and 60% of the remaining returns.