The senior vice president credit officer at Moody’s Investors Service, Benjamin Leyre, argued Wednesday that wholesale energy prices will remain lower in Portugal and Spain than in northern Europe.
Discounts and Advantages
50% of final free cash flow
The Fund has significant tax advantages. It is exempt from corporate income tax (CIT). Distributions/proceeds to non-resident investors who do not reside in a tax haven jurisdiction shall be exempt from Portuguese Withholding and Capital Gains Tax (on sale of IU’s). The Residents will pay a 10% flat rate tax.
2,5% of target annual return
This annual return have a priority over any other distribution.
Upon the fund term, hotels will be sold by a reputable broker in order to obtain the best possible selling price.
A relevant asset gain should be reached considering that assets have been bought during or just after the covid 19 crisis.
Real estate & Residences Sales
Real Estate & Residence pre-sales and sales will be the main regular income of the fund.
The high standards of the residences (unique location, branded with international luxury names, premium finishes) will justify fast sales at very high prices.
The second fund´s source of income will be the annual rents paid by the hotel operators for each asset: the better of 60% of AGOP or 3% of acquisition value. On the first year the minimum rent to be paid will be reduced to the best of 60% of the AGOP or 2% of the acquisition value.