Gold Magazine Special Funds Feature March ’21: Cygnator Fund Provides a Real Estate Pipeline for Experienced Investors
Cygnator seeks to invest in real estate projects in Cyprus. The fund’s portfolio is focused on commercial real estate related to infrastructure, office, retail, industrial properties and hospitality. More specifically, pipeline targets of the Fund include companies whose business involves the acquisition, development and use of land and buildings which own income-generating real estate. The fund’s ideal pipeline targets are based on a sale-leaseback arrangements, set in such a way to create a continuous income stream for the fund.
Such an arrangement is a unique value-added proposition for a property seller in Cyprus. It primarily improves the balance sheet of the property seller by releasing cash from existing CAPEX commitments. The cash generated can then be re-deployed by the property seller into more productive endeavours or liquidity.
Unlike the USA, most EU-28 countries exhibit an over-reliance on commercial bank borrowing. Cyprus is no different, as commercial bank borrowing has traditionally been the primary funding source. The result is excessive private sector debt, an oversized banking sector and a risky sectoral concentration of bank lending. This represents a constant threat to the stability of the financial system and contributed to the 2013 economic collapse. More recently, a number of alternative sources of both equity capital and debt financing – including foreign direct investment – are becoming more common, representing a healthy development for the overall Cyprus economy.
Global financial markets are operating in an environment of ultra low, or in many cases negative interest rates and rising levels of government and private debt. The disruptive influence on wealth preservation efforts from financial repression, stretched valuations (in both fixed income and equity markets) as well as a series of shocks to the global economy, is ever present. As the search for investment yields is constant, an investment process that manages risk using a rational, reciprocal and transparent due diligence process, shall always be the key to attracting foreign direct investment. Cyprus is not an exception to this paradigm.
Our project due diligence procedures are designed in such a way to be in phase with the requirements of international investors, to enhance the ability of the Fund to attract foreign direct investment. As such, our pipeline shall be presented to international investors (especially in Western Europe and North America) who are interested in investing in wealth preservation real estate funds in European emerging countries.
Fund Name: Cygnator Fund RAIF V.C.I.C. Ltd
External Manager: GMM Global Money Managers AIFM Ltd
Depositary: Eurobank Cyprus Ltd
Fund Administrator: Pricewaterhousecoopers Fund Services Limited
External Auditors: Pricewaterhousecoopers Limited
Legal Advisors: LLPO Law Firm
Structure: Open-Ended Fund
Legal Structure: Variable Capital Investment Company
Fund Life: Indefinite
Leverage: No Leverage
Reference Currency: Euro
Type of Investors: Professional and well-informed
Cygnator Fund RAIF V.C.I.C. Ltd is an open-ended Registered Alternative Investment Fund with multiple investment compartments, in the form of a variable capital investment company in accordance with the Alternative Investment Funds Law 124(I)/2018 under registration number RAIF23. The Fund is externally-managed by GMM GLOBAL MONEY MANAGERS AIFM LTD which is authorised to operate as an alternative investment fund manager in accordance with the Alternative Investment Fund Managers Law 56(I)/2013, under License No. AIFM 33/56/2013. Any projections, estimates, forecasts, targets, prospects and returns contained herein are not a reliable indicator of future performance.