Ecuador Residential & Commercial Property Fund (ERCP) A-Shares

Fund Objective

The ECUADOR RESIDENTIAL & COMMERCIAL PROPERTY FUND (ERCP) is an open-ended, actively managed investment vehicle that focuses purely on the strategic acquisition of direct land, incomplete construction (50% complete or more), bank repossessed, and existing properties for residential and commercial rental use in Ecuador. The funds objective is to invest in a balanced portfolio using an “added value and income strategy” by acquiring land, incomplete construction, bank repossessed and existing properties at heavily undervalued prices predominately concentrated in Quito, Guayaquil and Cuenca, close to future or existing Government and private infrastructure projects such as; major roads, shopping centres, leisure facilities and universities, where growth, income and sale price potential far exceeds the regional and national average. By developing land though planning permission and sub-dividing the funds aim is to construct a mixture of low cost, affordable, single and multi-family residential dwellings and complete incomplete construction using our third party constructor while upgrading (where necessary) bank repossessed and existing properties to deliver high quality new “rental ready” properties for the retail rental market. Renting only to financially secure tenants with high rental income and yields of 8 - 10% of the property value net p.a. in US dollars and rental contracts of 1 - 3 years allowing the fund to sell and replace ‘older’ properties with newer higher quality, rental and resale value properties continuously coupled with multiple channels of income through both rentals and sales. The funds aim is to achieve a target return of 30 - 35% net p.a in US dollars providing investors with liquidity and risk-adjusted returns. Investors can now benefit form investing in the only country in Latin America denominated in a base currency of US dollars mitigating currency risk.

Fund Facts at a Glance

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