Recently, Smartlands had made public the new additions to the pipeline of investment opportunities to be tokenised on the Platform. The sectors of the real economy on which the company plans to focus are the extraction and collection of natural resources, both commercial and residential real estate, renewable energy, agriculture, technology companies with an emphasis on telecom, and the industrial property market.
“Today we’re announcing the next project on Smartlands,” says Arnoldas Nauseda, Smartlands CEO, “which will be a logistical industrial property in the UK. Industrial real estate is integral to the UK economy’s supply chain as nearly all consumer goods are either produced, processed or stored in an industrial building. Traditional UK industrial real estate is located in rural areas where cheap land is abundant. Due to the emergence of e-commerce, consumers expect a better shopping experience overall with shorter delivery times, reliable local delivery as well as dependable international shipping. To match rising e-commerce demand, meet consumers’ delivery expectations and minimise supply chain costs, we believe that businesses will seek to store goods as closely as possible to their end-users. And therein lies an opportunity for both asset owners and investors.”
The upcoming project will entail tokenising £5,000,000 equity pool in a UK-based fund aiming to acquire, manage and selectively develop a last-mile industrial property with identifiable and solvable problems. The properties are going to be located within 10 miles of consumers, businesses and key infrastructure in one of the densely populated areas of the UK. The fund is targeting a 13% to 16% Gross IRR, a 1.5x Gross Multiple and a 6% to 8% current yield with a maximum of 65% fund-level leverage.
Acquisition of the last mile (urban) industrial logistics units with identifiable problems is an excellent opportunity to benefit from a troubled asset through proper management and a deal structure that provides for an option to crowdfund the investment. Smartlands plans on implementing a hands-on approach to solving the identified problems of the property and exiting from the property once the optimal revenue level is achieved.
“The two major indicators of poor management we are looking for are high vacancy rate in locations with strong demand and lease rates lower than the market average,” says Arnoldas Nauseda, adding “To improve property performance we will closely monitor tenant satisfaction quickly identifying and solving problems. We will adjust the size of units based on tenants’ demand (dividing larger spaces or unifying smaller ones), convert excess office space into a warehouse, and, crucially, optimise the financing structure.”
Please note that property and related investments involve risks including loss of capital, illiquidity, default of a borrower and lack of returns. The risks involved will vary by project types, so please make sure you have read and understood the specific risks associated with the investment. Investments made on this website should only be made as part of a diversified investment portfolio. For more details, see the Key Risks. Projections or estimated returns are not a reliable indicator of actual future performance and eventual returns or dividends may be lower than predicted. Information presented on this website is for guidance purposes only and does not constitute financial advice. If you are unsure of the suitability of an investment, please contact your financial adviser for professional advice.
Smartlands Platform Ltd is an appointed representative (FRN: 841597) of Shojin Financial Services Limited which is authorised and regulated by the Financial Conduct Authority (FRN: 716765) (see www.fca.org.uk/register for more information). Investments described in this communication and or on websites operated by Smartlands Platform Ltd are not covered by the Financial Services Compensation Scheme. The investment opportunities listed on websites operated by Smartlands Platform Ltd are not offers to the public and can only be entered into by certain types of investors who have satisfied certain investment criteria.
This document has been approved as a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 by Shojin Financial Services Ltd.
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