Investment Strategy

The Fund’s objective is receiving stable returns through investments into commercial real estate, directly or indirectly (through securities or participation in other companies) with the aim of its further sale, reconstruction and lease.

Diversification of the Fund’s portfolio

• By classes – investments in a diversified portfolio of commercial properties in the retail, retail warehouse, office and trading centers sectors of the Ukrainian market and land plots;
• By assets – investments in real estate properties (directly or indirectly through participation in other companies), securities, bonds and other assets according to the fund’s investment criteria;
• By completeness – investments in existing real estate properties, reconstruction and development projects.

Asset allocation

According to fund's investment strategy, the Fund’s assets will be invested according to the following proportions:

• No less than 70% of the Fund’s assets will be invested into existing real estate properties (offices, trading centers) with return acceptable for the Fund.

• No more than 30% of Fund’s assets will be invested into development projects, fully controlled by the asset management company.

• The assets, at the stage of the Fund’s formation, and free cash, not invested in real estate, will be invested in the securities of the Ukrainian issuers with the risk-return balance acceptable for the Fund.

Regional investment policy

At the initial stage the main fund’s assets will be invested in Kyiv and other regions into development projects that underwent investment examination. Later on the fund will adhere to the balanced investment regional policy.

Term

The Fund’s lifetime is 15 years. Investing into real estate is a process characterized with long term maintenance, cycling and high cost of real estate properties.

The Fund’s investment strategy is subject to change in future in the light of prevailing economic conditions. The changes and additions to the investment strategy will come into force only if approved by the Fund's Supervisory Board elected according to the procedure specified in the Fund's Regulations.