Almost all investors try to diversify their financial portfolio with rather uncorrelated returns from the real estate industry. However, direct access to this market is not easy given the substantial minimum investment fees and illiquid nature of the business. Real estate securitisation converts the asset into a tradable security on the financial markets. This is a flexible and efficient way to raise capital, to fund a real estate development project or to get a real estate portfolio off the balance sheet. Investments can thereby be channelled as equity, debt or even hybrid structures. This allows for potential fixed-income distributions, upside participation and tax efficiencies.
Problem: Real Estate investments are very often limited to selected privileged investors. The high single value per estate typically creates natural barriers for entry, even for qualified investors who want to make a diversified investment.
Solution: A bond, CLN or similar instrument can facilitate investment in a diversified pool of real estate. The flexibility of this kind of instrument allows for tailor-made financing when it comes to tenors, debt/equity financing, fixed/variable rates, etc.
Simplified Example: A CLN to Finance a Real Estate Project
1. Qualified investors instruct their custody bank to buy the CLN certificate via the Swiss ISIN.
2. Through this buy transaction, the investor receives CLN certificates booked into their custody account, while the buying price in cash flows into the CLN’s account at ISP.
3. As soon as cash has arrived at ISP, we, in our role as paying agent, transfer the cash proceeds to the borrower’s bank account, enabling them to start the Real Estate project.
Experience
1.000+ ISINs serviced
Understanding
As professional Asset & Wealth Managers, our understanding of our clients' needs is inherent to our practice.
Securities Firm
We are a long standing, reputable Swiss securities firm, with a broad team of product & securitisation experts.
Skills
Our highly skilled relationship managers, product specialists and traders are accompanied by experts within onboarding, legal & compliance and many more fields.
Trading Lines
700+ financial institutions have open trading lines with us, allowing our clients numerous advantages.
Partners
In addition to our inhouse trading services, our clients are also provided with access to trading via several prime brokers in the market.
Flexibility
We always put our clients and their needs first, we are highly flexible and can accommodate any needs.
Our team consists of experts in the field of securitisation. We take a dynamic, dedicated and tailored approach that enables us to realise our clients’ goals and visions. With our can-do attitude, we strive to serve our clients with the highest level of professionalism in the most efficient way.
Trading financial products carries significant risks, including the risk of a complete loss of investment, and may not be suitable for every investor. Therefore, please consider our risk warnings carefully, ensure that you have clearly understood all associated risks and that your legal place of your residence or registered office allows you to access this information.
