As a way to provide an alternative for investors looking for safe and profitable investment options but do not want to invest directly in real estate assets, we developed the NAVIGATOR II FUND, a fund whose main objective is to invest in commercially-owned companies (SPV). - Special Purpose Vehicle) that generate income through long-term lease agreements with Triple A companies and reputable retail chains, fast food chains, gyms, medical and dental services, usually of European origin.

The Navigator II Fund is a Venture Capital Fund established under Portuguese Law No. 18/2015 of 4 March (transposing Directive 2013/14 / EU of the European Parliament and of the Council) and governed by CMVM Regulation no. 3/2015, October 15th.

The fund is structured as a closed-ended fund with a maturity of 7 years, with a minimum investment ticket of 200 thousand Euros and which in the first 9 months of operation had a net return of 7.3%.

The main drivers of profitability are the rents received through the lease agreements associated with the commercial assets belonging to the companies that the Fund acquires, which always revolve around 6% to 8% per year. However, facing the possibility of financial leverage and also of the (with added value) trading of real estate assets, these returns tend to reach a minimum net level of around 8% per annum, reaching up to 20% per annum.

FUND’S MANAGEMENT

The management of the fund is the responsibility of Lince Capital, a company that is part of the Temple Group and has been managing venture capital funds and specialized investment funds for over 30 years and developing real estate projects for over forty years. It has a team with extensive experience in commercial, residential, retail, tourism and urban planning; currently manages funds worth more than 350 million euros.

ADVISOR

EUROPAR INVESTIMENTOS & PARTICIPAÇÕES, a Portuguese business institution derived from the operation of two Brazilian companies, MAM ASSESSORIA and VETOR INVESTIMENTOS E PARTICIPAÇÕES, both active in the Brazilian capital markets for over 20 years and strongly focused on the development and structuring of products and financial services.

It has a body of professionals with strong experience in asset management, financial product structuring and financial consulting, with solid academic background and experience gained in Brazil and abroad.

CUSTODIAN BANK

Millennium bcp is the largest Portuguese private bank. In 2018, it was ranked by Forbes in 1,623th position among the largest companies in the world. Millennium stands out with international investment banking operations through the Real Estate Investment Bank. In the private banking area, Millennium bcp was also a pioneer, with operations in the USA (BCP Bank), the Netherlands (BCP Investment), Luxembourg (Banque BCP), Switzerland (Millennium Banque Privée), Macau (Millennium Macau and Banco Comercial de Macau), Cayman Islands (BCP Finance Bank and Millennium Bank & Trust), in Mozambique through Millennium BIM, and in Poland as the main investor of Bank Millenium.

PORTUGAL

The Portuguese economy grew by 2.1% in 2018, 0.7 percentage points less than in the previous year and below the Government's forecast, which estimated growth of 2.3% that year (according to data released by the National Institute of Statistic). However, the Portuguese economy has been growing for nine consecutive quarters in convergence with Europe; This is the longest period of convergence with the EU since the beginning of the century.

The Portuguese economy will continue to grow, but at a slower pace until 2021, reflecting the deceleration of exports, according to Bank of Portugal (BdP) forecasts. The BoP anticipates growth of 1.8% in 2019, 1.7% in 2020 and 1.6% in 2021 and highlights the downward revision of export growth.

The 3 main international risk agencies (Fitch, S&P and Moodys) classify Portugal's sovereign risk as investment grade, facilitating access to the international market of banks and companies and improving financing conditions and reducing the cost of credit.

REAL STATE COMMERCIAL MARKET IN PORTUGAL

The real estate market in Portugal had another record year in 2018 with around 3.3 billion euros in investment in the commercial segment alone, according to data collected by consultancy JLL.. 2017 had already been a year of exception, but the surprising amount of investment made in commercial real estate in 2018 - almost doubling from 2017 - leads the consulting company to argue that real estate has taken a “path that can no longer be undone". In the 12 months of 2018 alone, it has been invested in commercial real estate as much as in the seven years between 2008 and 2014, reports the consulting company. Retail, with 45% of its capital traded in 2018, and offices, with 24%, lead investors' preferences, of which 94% are from foreign sources, adds JLL.

INVESTMENT OPPORTUNITIES

  • Investment fund for the development and subsequent sale of commercial real estate assets (guaranteed income) in Portugal with high and safe returns;
  • Diversification of investment in various assets to reduce risk;
  • Investment through a transparent and tax-regulated vehicle by the Market Commission and Banco de Portugal;
  • Eligible for the Portuguese Golden Visa Program through a minimum investment of 350 thousand Euros.

INVESTMENT, DIVIDENDS, GAINS AND DISTRIBUTIONS

  • The investor will invest in the Fund during the subscription period;
  • The investor will be repaid for his initial investment through the expected annual return on the fund's maturity;
  • The fund has no tax on capital gains or any other form of income;
  • In the case of foreign investors, there will be no taxes on the distribution of dividends and capital gains; in the case of a Portuguese investor, there will be a withholding tax of 10% on the distribution of dividends and capital gains.
  • The investment will be provided through a loan to the SPVs that are undertaking the different projects and all annual distribution will be provided back as interest on this loan as it is tax exempt up to 6%.
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