real estate investing

BROADSPECTCAPITAL
www.broadspectcapital.com
SIMPLICITY INTERGRITY EXCELLENCE
BROADSPECTCAPITAL
Real Estate Investing
Supplementary Source of Income
John Muthama Kamau

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What is Real Estate?
A piece of land, including the air above it and the ground below it, and any
buildings or structures on it. Real estate can include business and /
or residential properties, and is generally sold either by a realtor
or directly by the individual who owns the property (for sale by owner).

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Types of Real Estate
Real Estate Sub Sectors
 Commercial
 Industrial
 Retail
 Services
 Apartments
 Residential Single
Family Homes /
Condominiums
Investing in Apartments for Income & Stability
A timely opportunity to invest in one of the safest sectors 1 within the
real estate market – income producing apartment properties in Kenya

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Why invest in Real Estate

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Real Estate Investment Benefits
1
2
3
4
5
Income: Provides the foundation for monthly income
Investment growth: A hard asset that appreciates over time
Lower volatility: Not impacted by as many short-term market forces as other asset
classes
Capital preservation: For several usages a fundamental staple with downside
protection
Inflation hedge: Real estate has a history of protecting against the destruction of wealth
caused by inflation1

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Options for investment in Real Estate
 Direct ownership
 Pool your money with friends/ business partners
 Real Estate Investment Trusts: Public and Private
 Mortgage Investment Trusts

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Real Estate Investment Trust (REIT)
What is a REIT?
A REIT, or Real Estate Investment Trust, is a company that owns or
finances income-producing real estate. Modeled after mutual funds,
REITs provide investors of all types stable income streams,
diversification and long-term capital appreciation.
REITs allow anyone to invest in portfolios of properties the same way
they invest in other industries – through the purchase of units in the
REIT.

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Property Ownership vs. REIT Investment
Direct Property Ownership
 Pride of ownership, you have a piece of
property you can touch, feel and call your
own
 You make all the decisions
 100% of the profit is yours
 100% of the expenses are yours
 Fully responsible for the day-to day
maintenance and operations of the
property
 Legally responsible for the property
 Only recipient of capital gains
 Tax structures depend on where you live
& where the property is located
 100% of the risk is yours
Real Estate Investment Trust
 Shared ownership and profits
 Management of the property is
professionally handled by an experienced
property manager
 Expenses are managed by the trust and
does not require any out-of-pocket
payments from the unitholder beyond
their investment
 Legal and financial requirements are
managed by the asset and property
manager
 Board of Trustees make decisions in the
best interest of the unitholders.
 Unitholders have the right to vote on
changes to the Declaration of Trust

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Private vs. Public REIT
The two main categories of REITs are; publicly traded REITs and private REITs.
Differences between Public and Private REITs
Publicly-Traded REIT:
 Trade on a public stock exchange (provide
daily liquidity)
 Trading daily also means investors can
potentially push price up or down, reflecting
current market sentiment, regardless of actual
market value of the asset
 Increased reporting costs due to requirements
of a public listing
 History of more volatile pricing
 Tend to be more highly correlated to equity
markets.
Private REIT:
 Not traded on a public stock exchange
(generally offer 30-day liquidity)
 Value is based on the value of underlying
real estate or equity / lending rate (not a
“market-traded” price)
 No additional reporting costs related to a
public listing
 Rational pricing with lower volatility2
 Tend to be far less correlated to major
equity markets1

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Priority of Payment

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Potential Exit Strategy

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Broadspect Portfolio
Based in Nairobi Kenya, Broadspect Investment ltd is a Property Management Company that
offers a growing portfolio of private investment Products. Broadspect Manages multi-residential
rental properties in the country.
Investment Solutions
 Broadspect Capital (Imarika) Apartment REIT
 Broadspect Capital Real Estate Opportunities Trust
The Broadspect capital Investment Products Portfolio is governed by a
separate independent Board of Trustees, the majority of whom are independent of management.
Financing Solutions
 Construction and Development, Refinancing, Bridge
and Mezzanine Loans and Equity Participations
Property Management Services
 Multi-residential apartments

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Investing with Broadspect Capital
1. We look at the needs of our Investors
Income-oriented investors that are looking for:
 Cash Flow
 Asset Appreciation
 Portfolio Diversification
 Opportunities to Re-Invest
2. Then we offer solutions with the objectives of meeting those needs
Monthly Distributions
Growth Potential
Diversified Portfolio
Maximize Unit Value

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Investing with Broadspect Capital
At Broadspect Capital we are:
Focused
 Focused on investing and managing multi-unit residential properties, student housing residences and mortgages
Experienced
 Broadspect Investment Ltd was established in 2003.
 Depth of experience:
 Supported by experienced analysts and an experienced, majority independent Board of Trustees with executive ownership.
Disciplined
 Established, process-driven investment and operating methodology to manage risk and uncover opportunities to maximize
income and value.
 Diligent approach to asset and property management.
 Adding value by improving both the physical building and the service experience to maximize income.
 Adding value by improving both the physical building and the service experience to maximize income.

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THANK YOU
END

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