Holding Your Investment – The SPV System

Only applies to Turnkey Investors

 

Each one of our joint real estate acquisitions will be performed through the setup of a single, easily manageable and specific Special Purpose Vehicle (typically a local SPV under Luxembourg law). Although SPVs will be entirely managed by our Company during their entire detention period in order to maximize rental revenues, their respective shares quota may vary in accordance to the below conditions:

Joint-Venture Turnkey Investment:

  • Full property detention period: 12 to 36 months
  • SPVs shares quota: Rose Hawks 51% / Investor 49% during the whole period of detention
  • Dividends quota: Rose Hawks 51% / Investor 49% during the whole period of detention
  • Capital gains at sale: Rose Hawks 51% / Investor 49%

Long-Term Turnkey Investment:

  • Full property detention period: 12 months
  • SPVs shares quota: Investor 50% / Rose Hawks 50%
  • Dividends quota: Investor 50% / Rose Hawks 50%
  • At end of terms: SPVs share quota transfer from Rose Hawks to Investor

The only purpose of each specific SPV will be to directly manage, administer and eventually sell its unique property. Rental revenues after tax will be allocated by Rose and Hawks S.A. to Turnkey investors on the basis of the proportion of their SPV shares. In order to take profit of the most effective fiscal optimization investors are strongly advised to manage their part of joint property acquisition by the means of a personal holding of their choice, ideally to be setup in Luxembourg or in any country having signed with Luxembourg a treaty against double taxation (more details on our Joint-venture investments page and Long-term capitalization page).

No bond issuance is needed. Turnkey investors will receive a share certificate related to their amount of SPV shares, together with a cadastral property proof of ownership and a second certificate issued by our Company mentioning:

  • the value of their investment pulled into the property expressed in percentage of the global acquisition cost;
  • a realistic estimation of the property value at future resale compared to its acquisition price.

SPVs are commonly used by fiduciaries and lawyers as an effective way to guarantee their clients about investment protection and fiscal optimization. When acquiring, transferring or selling shares of a SPV capital gains tax and stamp duties can be widely reduced and even in some cases eliminated, mostly depending on the nature of your chosen corporate entity that will be required to hold its SPV share participations in order to reach the maximum benefit from the parent/subsidiary regime.

Joint-venture investment through SPV

Long-term Investment and Property Turnkey release, both done through an SPV