2. The IPI Group was founded in 1994 by Sven Sejersted Bødtker and has since
then been engaged in development and management of real estate
projects in the United Kingdom, Spain, Germany, USA and Norway.
The Group today includes the following companies (see also www.ipi.no):
• IPI Management AS, Asker, Norway
• IPI Invest AS, Asker, Norway
• IPI Project AS, Oslo, Norway
• IPI North America LLC, Orlando, USA
• IPI Eco Developers SL, Malaga, Spain
Focus is on residential properties; commercial properties constituting a minor share.
The tasks include:
• Search for suitable projects
• Feasibility studies
• Equity financing
• Third party financing (bonds and bank loans)
• Establishment and management of owning companies
• Letting management (in cooperation with local partners)
• Project management: contract administration, supervision and control,
accounting, reporting to investors, marketing and sales; in close cooperation
with local builders, architects, engineers, solicitors and land owners
BackgroundBackground
3. • Cross-border investments can reduce cyclical risks and improve profitabilityCross-border investments can reduce cyclical risks and improve profitability
• Profitability is to a large extent dependent on good timing for purchase and saleProfitability is to a large extent dependent on good timing for purchase and sale
• Cyclical market movements can often be predictedCyclical market movements can often be predicted
• A clear strategy for rental and sale needs to be in place at the startA clear strategy for rental and sale needs to be in place at the start
• Purchase of old buildings requires thorough technical inspectionPurchase of old buildings requires thorough technical inspection
• Close control of the construction process and eventual letting reduces riskClose control of the construction process and eventual letting reduces risk
• Local partners are essential and must be chosen carefullyLocal partners are essential and must be chosen carefully
• One should avoid countries with unstable political and legal systemsOne should avoid countries with unstable political and legal systems
• Low- energy and ecofriendly designs are importantLow- energy and ecofriendly designs are important
We believe thatWe believe that
4. Dorset Road, London
Newbuild 6 apartments
Asset value USD 2,6 mill.
Roman Square, London
Newbuild. 11 apartments
Asset value USD 4 mill.
Tredegar Square London
Newbuild 11 apartments
Asset value USD 4 mill.
Smedasundet Brygge
Haugesund, 48 apartments
Asset value USD 16 mill.
Eiendomsfond Tyskland I AS
1400 apartments in Berlin
Asset value USD 155 mill.
Oppegårdgata, Oslo
10 apartments
Asset Value USD 2,6 mill.
Vendla, Asker, Norway
Project villa
Asset value USD 1 mill.
.Bolig Berlin AS, Germany
2 apartment buildings
Asset value USD 2,6 mill.
W. Smithfield, London
Conversion bank to 17 apart. &
restaurant. Asset value USD 6,5 mill
Some IPI projects 2000-2015Some IPI projects 2000-2015
Hotel Valkyrien, Oslo,
Conversion to 46 studios
Asset value USD 6,5 mill.
Miraflores Hills, Mijas, Malaga
Newbuild 56 apartments.
Asset value USD 14 mill.
5. Projects 1994 - 2016Projects 1994 - 2016
No. of properties: 65
No. of apartments/houses: 1 956
Turnover: USD 194 mill.
Selection of Berlin properties managed by IPI 2006-2015. Sold January 2015
7. Target areas 2016 -20Target areas 2016 -20
NORWAY (Oslo-area):
Norway has for the past 40 years benefited from a rapidly growing economy, much thanks to the oil adventure in the North
Sea. The pension fund, manoeuvred by the government, has supported its residents to become the richest in the world. Just
as the pension fund, we believe in long-term investments. However, it is a short-term risk associated with recent softening of
oil prices, which will effect the economy. Commercial and residential property values in the oil related towns are already
under pressure. The de facto devaluation of the Norwegian currency over the past 24 months also implies that values in USD
or EURO terms are well below the peak, even in Oslo, the capital. IPI Project AS manages and co-owns a block of 10
apartments in Oslo (see Oppegårdgata AS below). We are now looking for apartment buildings in Akershus, Østfold and
Vestfold, in micro locations with potential for high returns.
SPAIN (Gran Canaria and Costa del Sol):
The dramatic fall in property prices has levelled out, creating new opportunities both on the mainland and on the islands.
Costa del Sol is one of the most favourite vacation areas, and IPI has had great success with its construction of 56
apartments near Malaga. Sold during 2003, the investors made a 100 % return over the three year period and we believe we
can repeat the success story. Therefore, we have agreed to purchase a 13 000 m2
property with 25 villas and townhouses
(see Eco Mijas Garden below).
Working closely with the Miraflores Group, we are acting as advisors on two residential project in the Malaga region (see
Valle Miraflores and Club Miraflores below). Further afield, approximately 400 000 Norwegians visit Gran Canaria yearly,
which generates a high demand for rental properties. IPI is acting as advisors to the Sanchez / Sonnenland Group of Gran
Canaria on the development of their property on the southernmost tip of the island. Planning permission is now approved for
construction of some 250 apartments for holiday ownership and -lettings (see further info on Arguineguin Park below).
GERMANY (Berlin):
Europe’s strongest economy. The capital grows rapidly, both in population and in financial terms. Berlin house prices are still
very affordable, much due to strict rental regulations. We are currently evaluating projects with short-term letting licenses and
also freehold apartments, as well as office premises. These will benefit from the economic upturn but will not be affected by
rental restrictions. IPI Management AS (IPI M) has since 2006 invested in and managed a Norwegian fund (Eiendomsfond
Tyskland I AS), which recently sold all of its 43 buildings with 1 300 apartments in Berlin. IPI M still manages two apartment
buildings with 17 letting units owned by Bolig Berlin AS. These have recently been put up for sale with the expectation of
producing a healthy return to the investors.
8. New projects OsloNew projects Oslo
Strong demand and limited new
construction has lead to a steady
increase in house prices over many
years, particularly in the Oslo region.
Yields are now at historically low
levels. Neighbouring cities on both
sides of the Oslo Fjord offer higher
returns and at times appear to provide
better investments; risk/reward
considered.
IPI Invest AS is presently looking to
buy residential buildings for its
investors in these areas. Location is
key.
IPI Project AS has its offices here at St. Olavs gate 21, Oslo
9. United StatesUnited States
The world’s largest real estate market.
After the financial recession of 2007-10
the values have rebounded as we
predicted. Florida is one of the most
rapidly growing states, and property
values are again on the increase.
Through IPI North America LLC,
Orlando, established in 2009, we have
gained experience and understanding of
the market. In partnership with a local
developer we have designed a 326 units
multi-family project to be built southwest
of Orlando. Due to low investor interest
in Norway and funding difficulties we
have decided to sell our share to the US
partner.
Club house: Champions Vue Apartments,
10. SpainSpain
The dramatic reduction in Spain property
prices between 2007- 2014 has now leveled
out, creating investment opportunities. This
is especially evident on the Costa del Sol
which comprises the south and the south
east parts of the Mediterranean coast. This
is one of the most favorite vacation areas.
IPI had great success with its construction of
56 apartments near Malaga. Sold during
2003, the investors made about 100 %
return over the three year period. We
believe this success story can now be
repeated. We have therefore recently
established IPI Eco Developers SL,
Malaga; which will be in charge of
development of new projects. Our project
manager, Amir Nahavandi, has been in
head of construction of over 1 300
apartments and houses in the area through
the last 35 years. He was IPI’s project
manager of our Miraflores Hills development
(see the photo on the right). “Miraflores Hills”: 56 new apartments, completed and
sold in 2003, well before the market peaked
11. 2007 BUBBLEBURST
SPAIN: REAL ESTATE BUSINESS CYCLE
2008-2014 PRICEEROSION &
DISTRESSED MARKETS 2019-…
2014-2018 GROWTH
OPPORTUNITY
OPTIMUM
INVESTMENT
WINDOW
EARLYDOWN CYCLE
• Lending shuts down
• Long lasting instability
from bubble
MID DOWN CYCLE
• Forced sellers
• Price too high
• Unknown bottom
• Too early to invest
PROFIT TAKING
RECOVERY
• Economy rebounds
• Leverage kicks in which
drives value up
2015-16
BUYLAND.
Start design &
planning
2017-2022
CONSTRUCTION
AND SALES2016-17
PRE-SALES &
FINANCING
EARLYUPTURN
• Transactions at large
discounts
• Time to buy with equity
• Limited downside
12. Mijas Garden (1)Mijas Garden (1)
Project ‘Mijas Garden’ located in Mijas, Costa del Sol, Spain
13. Mijas Garden (2)Mijas Garden (2)
The IPI Group controlled Eco Mijas Garden SL has recently been formed to owe and develop
a 13.000 m2
property in the historic village of Mijas, Costa del Sol. The company and the
development will be managed by IPI Eco Mijas Garden SL.
This allows a total building size of 4525 m2
living area, and we expect to build 11 villas, 14
townhouses. Total land cost is € 1,080,000 i.e. € 290/m2
of building volume.
14. Mijas Garden (3)Mijas Garden (3)
Investors are invited to join at this entry level, either
as partners in the Spanish owning company or as
shareholders in the Norwegian holding co.
Net sales revenues are estimated at some € 13,3
Million, giving the investors a pre-tax profits of abt.
100% on their equity of € 2,9 mill. The rest of the
project costs are being financed by a local bank and
pre- sales of some of the units.
Completion of construction and sales is expected to
take about 2 ½ years.
16. La Katria, Costa del SolLa Katria, Costa del Sol
(2)(2)
We are acting as advisors to the owners
of La Katria, a property of some 110 000
m2
of beautiful south facing land located
in Mijas county, province of Malaga.
Planning permission allows for is granted
for construction of 140 town houses, six
villas and a small commercial centre.
Having spent 10 years to obtain planning,
the owners are now prepared to sell the
project with its licenses or to enter into a
joint venture with a financially strong
investor.
17. Club Miraflores, Costa delClub Miraflores, Costa del
SolSol
Together with the Miraflores Group, we
are negotiating to buy the freehold of the
Miraflores Club, which is the
administrative and leisure centre for the
Miraflores 1200 units community in Mijas
Costa.
With a large pool area, gardens and
offices, it has the potential for adding
three more floors of some 60 studio suites
for sale as freeholds (condominiums),
within an apart-hotel operation.
The property today yields a decent return
supporting the costs of redesign and
licenses.
Completion of the new facilities will take
30 to 36 months. We will be inviting
investors to join in the autumn of 2016.
18. Arguineguin Park, GranArguineguin Park, Gran
Canaria (1)Canaria (1)
As advisors to the Spanish hotel owners and property developers Sanchez Group, IPI has
spent over five years on their project Arguineguin Park, Gran Canaria, Canary Islands. The
project will consist of some 250 apartments in 14 blocks, located in one of the islands’ most
popular destinations for holiday makers and longer-term residents.
19. Arguineguin Park, GranArguineguin Park, Gran
Canaria (2)Canaria (2)
Ownership of the apartments will be in private hands, and IPI will be offering some of the
blocks to its investors. The apartments will be let on contracts managed by a well-known
hotel/leisure group and are expected to provide a good return on cash invested. Construction
is set to start in the autumn of 2016 with completion 2 - 2 ½ years later.
20. Team players IPI GroupTeam players IPI Group
Vendla Eiendom AS (holding co.):
•Hilde Sejersted Bødtker, chair person
IPI Management AS (IPI M), board members:
•Sven Sejersted Bødtker, MA. Econ.
•Torstein Lien, MBA
IPI Invest AS, board members:
•Sven Sejersted Bødtker
•Torstein Lien
IPI Project AS, partners with IPI M as shareholders:
•Jørn Terje Kristensen, solicitor, chairman Verdiforvaltning AS
•Mats Sæverud, solicitor, board member Verdiforvaltning AS
•Ragnvald Caspari, real estate agent, manager Verdiforvaltning AS
•Trond Selsbak, economist, finance manager Verdiforvaltning AS
IPI North America LLC, member:
•Steinar Faanes, MBA, realtor (US)
IPI Eco Developers SL, Spain, administrators:
•Amir Nahavandi, civ. engineer
•Sven Sejersted Bødtker
21. External board members in associatedExternal board members in associated
companiescompanies
Champions Gate AS:
Knut Schage
Jens Chr. Hauge
Bolig Berlin AS:
Knut Schage
J. Frithjof Skouverøe
Oppegårdgata 4 AS:
J. Frithjof Skouverøe
Nils Anders Kiær
Per Sverre Kilvær
Jørn Terje Kristensen
Mijas Garden AS:
Einar Askvig
