Boost for Chinese Real Estate Industry

The Chinese real estate industry is set to receive a much-needed boost which may include an easing of restrictions on the purchase of second homes, the expansion of funding channels for developers and a further cut in the taxes and fees associated with property purchase in China.

The plan is part of the government’s efforts to keep the country’s economic slowdown at bay. It is busy on a package of plans to revive ten key industries to keep China’s GDP growth above 8% and has already approved similar plans for the steel, textile and car industries. The property industry is one of the biggest drivers of China's domestic economy. It contributes a quarter of fixed-asset investment and employs around 77 million people, so it is a prime candidate for a lifeline from the government.

Although the plan is still waiting for approval from China’s Cabinet, the State Council, industry experts say that the government is keen to keep the property sector buoyant and is concerned that it has recently suffered from sluggish sales. According to the president of China Real Estate Chamber of Commerce, Nie Meisheng, the draft plan will be discussed at the annual National People’s Congress on 5th March. He said the plan will include suggestions for affordable housing, more policy support on loans for real estate firms and more innovative financial products to meet property developers' financing demands. If the plan is passed, it is hoped that the Chinese property market will improve in the second half of 2009. Nie added, “Whether the government passes the plan or not, the property market has its own operational discipline. What the outside forces can do is to speed up or slow down the correction process.”

Industry experts welcomed the loosening-up of government policies, but warned that there are still issues that need to be addressed to ensure stimulation of and sustained growth in the market. Although the Chinese Central Bank is proposing the establishment of real estate investment trusts (REITS) to ease the cash flow problems for developers, there are still other barriers to investment which need to be addressed. These include the double taxation imposed on both property assets and the dividend payment of REITs as well as the government’s restrictive policy on foreign investment in the real estate sector.

James Gonzalez, Market Analyst at Obelisk Investment Property, says that there is general agreement within the industry that this package of measures can only have a positive effect on the Chinese real estate sector, “however, there is a long way to go and if the restrictions on foreign investment are lifted, then China will certainly be a market to watch.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at http://www.absoluteguideseries.com/

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com/

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Beyond Marrakech

Mention Morocco to the property investor and Marrakech is the first (and perhaps only) destination that springs to mind. The imperial capital of Morocco with its world famous medina has been top of investment locations in Morocco for several years. However, Morocco is a large country – about the same size as France – and offers numerous investment opportunities beyond Marrakech.

When planning property development, Morocco has looked across the water to the Algarve and the Costa del Sol and officials liked what they saw. The government ‘Plan Azur’ mirrors the 5 star resorts found in Quinta do Lago and Marbella in everything except the prices. Like Spain and Portugal, Morocco can offer miles of sandy beaches, world class golf courses and luxury marinas but with one important difference – property prices in the Moroccan resorts are around half those found across the Strait of Gibraltar.

Moroccan 5 star resorts include Mazagan, south of Casablanca; Mediterranea Saïdia near the Algerian border in an area already popular with Spanish buyers who have invested in the nearby Port Marina Smir; and Mogador near Essaouira, located on the coast to the west of Marrakech.

When it comes to aspirations in tourism and foreign investment in property, Morocco can only be described as ambitious. The country’s ‘Vision 2010’ strategy has several impressive objectives. First and foremost is the target of 10 million visitors annually by 2010 – the 7.9 million tourists in 2008 was an increase of 6% on the previous year.

The strategy also includes massive investment in infrastructure. Between €8 and €9 billion has been allocated to infrastructure improvements. Airports are a main recipient and most Moroccan airports are set to experience upgrades or expansion. Morocco’s ‘open skies’ policy has already reaped rewards – international arrivals increased by 8% last year.

The worldwide economic slowdown will undoubtedly affect the Moroccan property market, but Morocco has an ace up its sleeve – a strong domestic market. Although foreigners generally perceive Morocco as a poor country, there are many wealthy Moroccans keen to invest at home. Rich Algerians and Libyans are also interested in their bigger neighbour where the beaches are considerably better.

“At Obelisk, we firmly believe in Morocco’s potential,” says James Gonzalez, Market Analyst at Obelisk Investment Property. “Our star rating for Morocco in our recent AGS was 3.5, one of the highest we awarded because of the opportunities opening up there in tourism and infrastructure.” While Marrakech is a perennial favourite, now may be the time to check out what is on offer further afield.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at http://www.absoluteguideseries.com/

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com/

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Sharing BRIC’s

Two of the BRIC nations, Russia and China, recently signed a historic agreement with huge reciprocal benefits. The deal’s aim is to ensure that Russia and China, along with their sister BRIC countries, Brazil and India, continue to lead the world’s economy well into the 21st century.

Executives at China Development Bank and the Russia state oil company, Rosneft, have agreed to exchange US$25 billion in loans for a daily supply of 300,000 barrels of oil for the next 20 years. The deal has been hailed by officials from both countries as the ideal way to address China’s problems with energy supplies and Russia’s lack of credit.

China, the world’s second largest oil importer, has huge monetary reserves and needs to ensure that its massive economy is not forestalled by failing energy supplies. Russia, the world’s second biggest exporter of oil (after Saudi Arabia) has recently experienced serious problems with lack of liquidity and many Russian companies are having difficulty securing finance.

The pipeline transporting oil from the vast oilfields in East Siberia will be the first from Russia to China and its load of 15 million tonnes each year will constitute around 4% of China’s annual oil requirements. This recent agreement furthers trade between the two BRIC nations – China-Russia trade grew by 18% in 2008 and was worth US$56.8 billion.

The BRIC nations are widely expected to head global economic growth this year. The Financial Times predicts a world GDP increase of just 0.6% for 2009 with most of this coming from Brazil, Russia, India and China whose combined growth is forecast to be 4.7% – almost 8 times larger.

“This latest massive deal between Russia and China confirms the economic potential of the BRIC nations,” says James Gonzalez, Market Analyst at Obelisk Investment Property. “The opportunities for growth together with the natural resources in these countries – Brazil also has huge oilfields, as yet unexploited – mean a lot of investment will be focused here this year.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at http://www.absoluteguideseries.com/

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com/

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Kickstart to the US Property Market

Obama’s announcement this week of US$275 billion in funds to help mortgage holders has been widely proclaimed as a much-needed boost to the US housing market. The massive financial injection will be made up of US$50 billion from the US financial bailout, US$25 billion from the federal mortgage companies, Fannie Mae and Freddie Mac, plus US$200 billion from the US Treasury.

The availability of funds could not have happened at a better time. It is estimated that around 9% of US households with a mortgage are currently behind with their mortgage payments or already at the repossession (foreclosure) stage. According to Credit Suisse, this percentage could rise to 16% by 2012.

The current mortgage situation in the US is a direct consequence of the US subprime crisis and the property market deflation that immediately followed it. The worldwide effects of this are well known and few countries’ economies and property markets have remained immune. As President Obama pointed out when he presented the US$275 billion mortgage rescue, “All of us are paying a price for this home mortgage crisis.”

Under the rescue plan, those experiencing difficulties with keeping up with mortgage instalments have the opportunity to reduce their monthly payments to a level they can afford. Borrowers will receive up to US$1,000 a year for a maximum of five years to reduce their loan amount provided they keep up with their monthly payments.

The slowdown in the US property market has led to a significant decline in house values. Directly affected by this are 4 to 5 million mortgage holders whose loan-to-value ratio is now higher than it was when they first took out their mortgage.

“Apart from the massive injection of funds, the rescue plan will also bring some much-needed confidence to the US property market,” says James Gonzalez, Market Analyst at Obelisk Investment Property. “While we cannot expect the current situation to change overnight, I think it is realistic to look forward to a reversal of the fall in house prices.” James points out that once this happens, it will have knock-on effects in other countries with property markets in a similar situation.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at http://www.absoluteguideseries.com/

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com/

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Easier Investment in Croatia

Croatia, one of the EU’s three candidate countries, recently took a further step to full EU membership. As from 1st February this year, EU nationals buying property in Croatia no longer have to apply for a permit from the Croatian authorities. The move, which means EU citizens have the same rights as Croatian nationals when it comes to property purchase, is expected to boost investment in the country’s property market.

Until this February, all foreigners investing in Croatian property required a permit issued by the Foreign and Justice Ministries, a process that sometimes took two years. The vast majority of applications were approved – according to the Zagreb Institute of Economics, around 1,500 applications were made each year – but the timescale and paperwork involved in the process meant that some investors chose alternative destinations for property investment.

The new Bill of Property regulations for EU citizens together with the updating of the Land Registry by Croatian government are expected to make buying property in Croatia considerably easier and quicker. The Land Registry is now available online meaning it is now relatively straight forward to establish clear title to land, an essential aspect of due diligence.

The recently-passed Bill is part of the Stabilisation and Association Agreement signed by Croatia and the EU, and is an essential step towards EU membership, expected in 2010. EU citizens still require official permission to buy agricultural land and areas protected for cultural or national reasons, and non-EU citizens must still apply for a permit for any property purchase.

“The removal of barriers to property investment in Croatia for EU nationals is an extremely welcome move,” says James Gonzalez, Market Analyst at Obelisk Investment Property, “and one that should open up the market and inspire increased investor confidence.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at http://www.absoluteguideseries.com/

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com/

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Uruguay Investment – One to Watch

Uruguay, one of Latin America’s smaller countries, is often overlooked by those drawn to the brighter lights of Argentina, Uruguay’s flamboyant neighbour across the River Plate. However, while Argentina’s economy has floundered and shows little sign of recovery in 2009, Uruguay offers a completely different story.

2008 was a poor year economically for many developed countries, but Latin America had several star performers. According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), high achievers in 2008 GDP growth were Brazil, Ecuador and Panama, although Uruguay with its 11.5% increase outperformed the other 20 countries in the ECLAC listing.

The 2001-2002 Argentinian crisis hit Uruguay hard and the country fell into recession, but the prudent monetary policy followed since then has meant Uruguay’s economy has boomed while Argentina’s has failed to take off. Uruguay’s secret was to devalue its currency, a move that led to a lower cost of living and an attractive environment for foreign investment. Argentinians have been particularly keen to invest in their neighbouring country and foreign investment in Uruguay generally grew by a massive 25% in 2008. Foreign funds also poured into the country – non-resident deposits in Uruguayan banks increased by over 40% last year.

As in the case in many countries, the future is by no means certain for Uruguay in 2009 and it is unlikely that Uruguay will be immune to the global economic slowdown in 2009. That said, ECLAC predicts 4% GDP growth, far ahead of what most countries expect to achieve this year and still considerably higher than the 1.9% forecast for the region as a whole.

Uruguay’s devalued currency and favourable foreign investment climate makes it a country worth considering when it comes to property investment. Property prices are considerably below those found in Europe and North America, and Uruguay offers the additional advantage of a southern hemisphere winter. This has made Uruguayan beach resorts such as Punta del Este an ideal destination for Europeans and North Americans escaping from the winter cold in their home countries.

“Uruguay is certainly one to look at in a South American property portfolio,” says James Gonzalez, Market Analyst at Obelisk Investment Property. “Its economy is strong and the property market offers interesting investment opportunities. However, flights to Uruguay from Europe and North America are not as frequent as they are to some other destinations in the region.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at http://www.absoluteguideseries.com/

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com/

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Romania’s Investment Continues to Grow

Statistics recently released from the Romania Central Bank show an impressive increase of foreign investment in the country during 2008. According to the Bank’s figures, foreign direct investment (FDI) totalled €9.02 billion in 2008 up from €7.25 billion in 2007, an increase of almost 25%.

Romania’s strategic position in the midst of central Europe, its skilled workforce and low labour costs remain key attractions for foreigners planning to set up in the country. In addition, corporate tax, levied at the flat rate of 16% in Romania, is one of the lowest in Europe.

2009 looks set to see continued inflows of FDI for Romania. According to the official government investment agency, ARIS, the latest investors include Procter & Gamble who have opened another factory with an initial investment of US$50 million, an amount that is expected to double during the factory’s 2nd stage; the Greek banking entities, Piraeus Bank and Banca Romaneasca, who have already opened a further 15 branches between them in 2009; and the Chinese tractor assembly company, Hozo-SHK Modern Agricultural Equipment due to set up in Brasov with an investment of €18 million and employment prospects of 500 people.

In late 2008, Renault established an auto engineering centre in Romania, the most important industrial plant in the country. Funds for this ambitious project run to €1.5 billion and have earnt Renault the accolade of ‘Foreign Investor of 2008’.

One of the main beneficiaries of high levels of FDI has been wages. Traditionally one of Europe’s poorest countries, Romania’s salaries are increasing in leaps and bounds. According to government statistics, gross average wages in December were 9.7% higher than those in the previous month’s and year-on-year figures show a salary increase of a massive 17.6%.

“Romania’s FDI inflows for 2008 are impressive,” comments James Gonzalez, Market Analyst at Obelisk Investment Property, “and the more or less constant stream of new investment shows that this pattern is likely to continue during 2009 in spite of the global economic slowdown.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge from at http://www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Interesting Investment

The recent interest rate roller coaster has brought with it a legion of winners and losers. When interest rates were up - as recently as last summer - the savers were the ones reaping the rewards while some property investors found it a challenge to keep up with the relentless monthly increase in their mortgages. Now, the recent nosedive in interest rates has completely turned the tables and it is the turn of the mortgage holders to enjoy the benefits and for savers to wonder if it might be better to keep their hard-earned savings under the mattress rather than in a bank account with miserable interest.

However, whatever your status, there is no doubt that the current historically low interest rates have their advantages and now is an optimum time to consolidate or even restructure your financial affairs whether you are a saver or borrower.

Mortgage holders have a range of options available to them, particularly those with less than 70% loan-to-value (always the banks’ preferred clients). Consider remortgaging to take advantage of lower rates or renegotiating your mortgage terms with your current bank. Releasing equity from your foreign home to take advantage of the low value of sterling is another option.

Even though interest rates are at an all-time low, Ken Thorkildsen, Director of Obelisk Private Finance, believes that if you have a variable rate mortgage this may be the time to fix your mortgage rate. “Interest rates are certain to rise again,” says Ken, “and when they do, taking advantage of a low fixed rate mortgage will be highly beneficial and considerably more manageable than having to make ever-increasing monthly payments brought on by growing interest rates.”

Savers are currently the big losers with virtually no banks offering the nest-egg rates seen just a year ago. The average notice account in the UK is now offering beleaguered savers the lowest interest rate since 1995, instant access accounts give a mere 0.51% and the interest rate paid on ISAs comes in at just 1.38%. National Savings products are slightly better, but interest rates are hardly impressive or particularly conducive for the saver.

In the current climate, Ken advises savers to consider other means of making their money work. Traditional alternatives such as stocks and shares are an uncertain option at the moment, particularly for the saver looking for security and a guaranteed return. “Products offering guaranteed returns can be difficult to find, but there are some excellent schemes around,” says Ken, who advises asset-backed products for those who are looking for 100% security for their money. Products with asset-backed guarantees include property, although this tends to be commercial property rather than residential.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge from at http://www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Brazil is Looking Good for Investment

When it comes to unemployment, 2009 could not have got off to a worse start in many countries. Figures released in January for Spain showed 3.3 million jobless, the worst figure ever and the EU’s dire prediction that unemployment could reach 4 million by the year’s end suddenly looks very real. In the UK, jobless figures are on the rise and 3 million looks highly possible for the end of the year. But in Brazil, unemployment figures have never looked better.

Recently released government statistics show that in the 5-year period from 2003 to 2008, unemployment fell by a massive 29.4%. In terms of cities, Belo Horizonte, situated just north of Rio de Janeiro and Brazil’s 3rd largest city, registered the largest drop with 24.8%. São Paolo, Brazil’s financial hub and one of the richest cities in South America, saw a 19.4% fall in its jobless rate.

The growth in employment continued during 2008 when Brazil experienced its lowest unemployment rate since official statistics began. And the year’s 7.9% rate is expected to fall still further during 2009 – a far cry from the escalating unemployment currently being seen in the US and most EU countries.

Increased purchasing power often goes hand in hand with improved employment rates and Brazil’s statistics offer good news here too. Since 2003, the average Brazilian annual income has grown by 11.3%, although the urban centres of Belo Horizonte, Rio de Janeiro and Salvador all registered 15% or more. Higher purchasing power translates into a wealthier society and since 2003, the number of poor in Brazil has halved. Furthermore, for the first time ever, the middle class now represents the majority with 52% of Brazilians now enjoying middle class status.

“In the current economic climate, these statistics from Brazil are excellent,” comments James González, Market Analyst at Obelisk Investment Property. “They also show that Brazil represents great promise for the immediate future at a time when many established economies are set for some very hard times.” As James points out, higher employment and better wages are particularly promising signs for the property investor dependent on an exit strategy. “Not only is there an acute housing shortage in Brazil,” says James, “but increased purchasing power means more Brazilians will enter the property market.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge from at http://www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Is 2009 Turkey’s Year?

On the overseas property investment radar, Turkey is still an emerging signal and the temporary suspension of Title Deed Act last year gave many investors the wrong signs. However, 2009 looks set to be the year when Turkey firmly establishes itself as a strong green light on the radar.

Turkey’s attractions are myriad, although the pleasant climate in its beach resorts tops the list. Turkey’s winters might not be as warm as those enjoyed by its direct competitor, Egypt, but the Turkish summer season is long and considerably cooler than in Egyptian resorts.

Access to Turkish resorts and the legendary Istanbul is increasingly easier by air – Pegasus Airlines fly to several airports in Turkey from numerous European cities including London and Easyjet flies to Istanbul from Luton and Gatwick. Not to mention the countless charter flights in the summer.

But, perhaps best of all for the investor planning a lifestyle purchase and/or looking for a buy-to-let is Turkey’s coastline. Barely touched by the concrete that lines a lot of the French, Greek and Spanish seashores, many of Turkey’s resorts are virtually unspoilt. In Turkey, beautiful coastlines are a given.

Investment in buy-to-let purchases has received a welcome boost from Turkey’s tourist statistics. Visitor figures for the first 10 months of 2008 rose by a massive 13.1% – proof that Turkey’s attractions continue to draw the crowds even when the credit crunch is biting hard. Visitors from Austria, France and Slovakia experienced spectacular increases, up between 26% and 31%. These figures prove that the government ‘Euro 25’ long-term strategy for tourism is bearing its fruits.

As well as booming tourism, the Turkish market is also showing promising signs for the resale market. Turkey currently has a huge shortfall of housing caused mainly by the population growth in the cities. While the country’s population is growing at a rate of 1.4% annually, the rise is 4% a year in western and southern cities, popular with migrant workers flocking to urban centres from rural areas. Experts cite the Turkish housing shortage at between 2.5 million and 5 million units. In addition, a large amount (some developers estimate up to 50%) of older housing in cities needs extensive renovation or reconstruction in order to bring it up to modern standards.

“Although Turkey’s still very much an emerging market,” comments James González, Market Analyst at Obelisk, “the signs are that it’s set to become more established during 2009 and Turkey certainly offers some excellent investment opportunities”. James points out that, although some Turkish procedures and practices still lag behind those in more mature markets, Turkey’s government is working on improving property law. “Better transparency and easier business practices are an on-going process in Turkey,” says James, “and things can only improve, particularly since Turkey has its sights firmly set on EU membership, possibly in 2015.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge from at http://www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Funding for Commercial Property Investment

One of the many casualties of the subprime crisis has been the brake on bank lending. In most countries globally, banks and highstreet lenders are now very reluctant to release funds to borrowers. While just a short time ago, lenders were almost queuing up to offer clients mortgages and personal loans, private individuals and corporate entities are now finding it increasingly difficult to obtain finance for even small investment projects. For those looking for finance, particularly large-scale and/or for commercial property investment purposes, private equity funds offer an alternative means of obtaining capital.

For the individual investor, private equity funds may not be familiar, but they made their first main appearance on the world financial stage in 1946 when Georges Doriot, widely considered to be ‘the father of venture capitalism’, founded the American Research and Development Corporation (ARDC). Since then, private equity funds have established themselves as a main source of funding throughout the world. According to the European Private Equity and Venture Capital Association, private equity and venture capital funds have invested €270 billion in over 56,000 companies in Europe since 2000.

Private equity funds are established when a group of investors form a fund, which is then invested in a portfolio, often including property (commercial rather than residential). Investors come from a variety of backgrounds and typically include public pension funds, corporate pension funds, high net worth individuals, family offices and insurance companies. The investment period for the private equity fund generally lasts for a fixed period of 10 years, although many funds are extended for subsequent annual periods.

There are many benefits of using private equity funds as a means of financing a project or property development including access to long-term capital and an investment fixed within a framework of a negotiated contract. However, as Ken Thorkildsen, Director of Obelisk Private Finance, points out, perhaps the greatest advantage is that private equity allows the risks and profits to be shared between the fund and the borrower, something that is not an option with a loan from a bank or credit institution.

“An additional plus is also that the private equity fund may be able to assist with subsequent financing operations,” says Ken. “This is an important consideration for an entrepreneur or company with expansion plans for the future.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge from at http://www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com