1) The Montello Real Estate Opportunity Fund consolidates Montello's position as a 'one-stop shop' for real estate entrepreneurs, able to fund developers for property acquisition through bridging finance and development completion.
2) The fund launched in January 2014 and provides high level returns between 6-10% annually while preserving capital across a diversified portfolio of UK real estate projects.
3) Montello and transaction advisor CBRE undertake extensive due diligence on projects and partners to mitigate risk and support the fund's target of consistent, stable returns.
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Montello Real Estate Opportunity Fund Feb 2015 Factsheet
1. FEDCBA
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1175
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A
Feb15Jan15Dec14Nov14Oct14Sep14Aug14Jul14Jun14May14Apr14Mar14Feb14Jan14
CBRE Market Update
The UK housing market continues to be underpinned by
improving economic fundamentals. Unemployment levels
continue to decline and average wages have increased again, to
2.1% year-on-year, which is all feeding through into confidence
in the market. Against a low inflationary environment, mortgage
rates also remain close to all-time low, prompting a small
increase in the number of mortgages approved over the last
few months. However, while these fundamentals remain strong,
both pricing and activity is relatively subdued. According to
Nationwide, house prices softened in February, to 5.7% year-on-
year, from 6.8% in January.
Presently, the focus of residential investment is still very much
the private rented sector (PRS), as a range of institutional
investors continue to look for a way into the market, from both
the UK and from overseas. In particular we see appetite from
North American institutions, that already have a great deal of
experience in the US and Canada. However, the lack of stock
remains the biggest hurdle. While this is starting to change; there
are now over 100 PRS projects in the pipeline in London, much
of this reflecting adaptations from former for-trade stock. The
fastest pace of change is occurring in the key regional cities. The
fundamental investment drivers in these cities are compelling in
their own right, with many having strong demographic profiles,
but many also benefit from very pro-active local authorities that
are helping to drive development. This is particularly the case in
Manchester, where Manchester City Council are working closely
with both public and private finance to drive forward a number
of exciting initiatives.
SUMMARY TERMS
Target net-return: 6-10% per annum.
Allocation: 100% investment allocation for all share classes.
Income Paid: Quarterly. Accumulation and Distribution share classes available.
Reference currency: GBP (EUR & USD share classes not hedged)
Liquidity: Monthly with 30 days’ notice.
Min. investment: GBP 10,000 with reference to the normal SICAV-SIF rules for appropriate investor status.
Fees: 1.95% AMC + 25% performance fee (target returns are net of these fees).
MONTELLO REAL ESTATE OPPORTUNITY FUND m
101 NEW CAVENDISH ST, LONDON W1W 6XH
TEL: +44 20 7118 1144
www.montello.co.uk
www.montello.co.uk
REAL ESTATE
OPPORTUNITY FUND
February Update
February proved to be a strong month for the fund in terms
of matching the pipeline of transactions with an expanding
capital base. Continued interest and support from family office
investors has led to further inflows of capital, whilst the pipeline
of transactions for the fund to utilise these inflows has also
remained strong, with a number of opportune transactions.
At the start of the year there was some apprehension that the
impending UK General Election would lead to a hiatus in market
activity; however we have seen no evidence of this.
Our Track Record
The Montello group was set up in 2008 and has since built a track
record in real estate investments providing returns at or above the
Fund’s target range. Montello manages more than £100m and its
funds have consistently returned between 6.5% and 10.25%pa on
an annualised basis.
MREOF Performance
LFP I SICAV-SIF S.A. Montello Real Estate Opportunity Fund SICAV-SIF
Class ISIN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB
Since
Inception
Annualised
GBP A LU1004413578 0.6624% 0.7031% 0.7037% 0.5707% 0.6104% 0.6294% 0.5663% 0.6889% 0.6330% 0.5849% 0.6029% 0.5755% 0.5429% 9.0856% 7.7388%
EUR B LU1004413651 1.1932% 1.6019% 0.6536% 1.6021% 0.3526% 2.0276% 0.1650% -0.7579% 2.6192% 3.1053% 3.3289% 16.9970% 18.6786%
USD C LU1004413735 2.3096% 0.4221% 1.8626% -0.0491% 0.9475% -0.4421% -1.0187% -1.3371% -0.5588% -1.5600% 0.5247% -2.8289% 3.3979% 2.1614% 1.8498%
GBP D LU1004413818 0.6992% 0.7030% 0.5697% 0.6266% 0.6302% 0.5683% 0.6879% 0.6347% 0.5893% 0.6040% 0.5777% 0.5457% 7.6949% 7.6949%
EUR E LU1004413909 1.1932% 1.6019% 0.6546% 1.6041% 0.3547% 1.8445% 0.1682% -0.7547% 2.6225% 3.1098% 3.3331% 16.8141% 18.4762%
USD F LU1004414030 1.8618% -0.0481% 0.9438% -0.4421% -1.0191% -1.3387% -0.5588% -1.5605% 0.5231% -2.8660% 3.4242% -1.2241% -1.3346%
DistributionCapitalisation
12 MONTH PERFORMANCE 2014 2015
2. Investment Advisor
Montello Capital Advisors Limited (“Montello”) is part
of the Montello group, which is one of the leading real
estate financiers in the UK.
As well as an extensive deal referral network of
professional practices (law firms, accountants, IFAs
etc.), Montello has a substantial portfolio of ongoing
and repeat business from property developers and
entrepreneurs. The average deal-flow that Montello
generates is £50-120m each month.
Transaction Advisor
Additionally, Montello will be advised by CBRE
Indirect Investment Services Limited (CBRE), which is
Authorised and Regulated by the Financial Conduct
Authority and is a wholly owned subsidiary of CBRE
Limited whose ultimate parent company is CBRE Group
Inc., as Transaction Advisor. CBRE is a global leader in
Real Estate services, and has a team of professionals
based in their London office that is currently mandated
to advise on assets totalling over £5billion. In addition
to advising on transactions that the Montello Real
Estate Opportunity Fund will be involved with, CBRE
will assist in an ongoing role of portfolio management
and, where appropriate, with originating transactions
in the Fund.
Investment Asset Class
The Fund invests in real estate opportunities, with a
focus on the UK, and particularly on London and the
South East of England.
Opportunities include financing, joint ventures, direct
and co-investment in real estate and associated
securities and investments.
The investment objective is to ensure that the Montello
Real Estate Opportunity Fund provides stable, consistent,
high level returns for Investors, with limited volatility.
The fund generates strong and stable cash flows while
taking steps to preserve initial capital, with a target to
achieve an average total return to investors between
6% and 10% per annum.
Asset Risk Mitigation
Investment risk will be spread over a range of
properties and projects, with consideration also given
to geographical spread. Diversification occurs at
different levels including real estate type, location,
operational status and delivery time.
The Fund takes a range of securities as additional cover
for its assets, including personal guarantees, fixed and
floating charges against assets etc.
Montello does extensive due diligence on each project
and partner it works with, including obtaining full credit
reports, company history and other industry searches,
and uses the same underwriting procedures as, and has
access to the same fraud detection systems used by,
the mainstream banking industry.
Structure of the Fund
The Fund is a Luxembourg SICAV-SIF, open to well
informed, sophisticated and other qualifying investors,
corporate entities, trustees and other investment
vehicles such as off-shore bonds and platforms.
Who we are
Montello’s directors come from top-tier backgrounds in
law and property:
CHRISTIAN FAES LLB (Hons)
ex-Clifford Chance, Deutsche Bank
IAN THOMAS BSc (Hons) MRICS
ex-SEGRO, Ballymore Property
Advisors to the Fund
Investment Advisor: Montello Capital Advisors Limited
Transaction Advisor: CBRE Indirect Investment
Services Limited
Fund Management – Board of Directors: Luxembourg
Fund Partners Directors
Fund Administrator: APEX
Fund Auditor: PwC
Custodian Bank Paying Agent: ABN AMRO
Legal Advisor: PwC Legal LLP
[THE MONTELLO REAL ESTATE OPPORTUNITY FUND] CONSOLIDATES
MONTELLO’S POSITION IN THE MARKET AS A ‘ONE STOP SHOP’ FOR
REAL ESTATE ENTREPRENEURS... ABLE TO FUND DEVELOPERS FOR THE
AQUISITION OF A PROPERTY THROUGH BRIDGING FINANCE THROUGH
TO THE DEVELOPMENT AND COMPLETION OF A PROJECT’
Montello launches new fund (8 January 2014)
‘
Important Notice : this document has been issued on behalf on the LFP I Sicav SIF S.A. – Montello Real Estate Opportunity Fund (The Fund), which is authorised by the Commission de
Surveillance du Secteur Financier. This document is intended for discussion purposes only and does not create any legally binding obligations on the part of the Fund. Without limitation,
this document does not constitute an offer, an invitation to offer or a recommendation to enter into any transaction. When making an investment decision, you should rely solely on
the final documentation relating to the transaction and not the summary contained herein. The transactions and product mentioned herein may not be appropriate for all investors and
before entering into any transaction you should take steps to ensure that you fully understand the transaction and have made an independent assessment of the appropriateness of the
transaction in light of your own objectives and circumstances, including the possible risks and benefits of entering into such transaction. We recommend that you seek advice from your
own tax and legal advisors in making this assessment. The information contained in this document is based on material we believe to be reliable. However, we do not represent that it is
accurate, current, complete or error free. Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to
change without notice. The underlying investments in the Fund consist wholly or substantially of real property; the value of the real property is highly volatile and under certain market
conditions investors seeking to redeem their holdings may experience significant restrictions or delays. Any projections are based on a number of assumptions as to market conditions
and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results. The distribution of this document and availability of this
product in certain jurisdictions may be restricted by law. You may not distribute this document, in whole or in part, without our express written permission.m
www.montello.co.uk
101 NEW CAVENDISH ST, LONDON W1W 6XH
TEL: +44 20 7118 1144
www.montello.co.uk
REAL ESTATE
OPPORTUNITY FUND