General information
What is the target amount to be raised through the Securities Issue?
We aim to raise up to USD 55,000,000, divided equally between Investor Shares and Bonds (USD 27,500,000 each). The minimum threshold to raise is USD 25,000,000 to acquire the first asset. If this amount is not reached in time, all subscriptions will be voided, and investors will not be obligated to pay for subscribed securities. If the issue is oversubscribed, allotments will be made either pro-rata or adjusted depending on deal flow, with DCRF potentially issuing additional securities.
When does the subscription period begin and end?
The subscription period will be communicated by the Fund Manager. The initial closing will be decided in consultation with DCRF's Management Board, based on the progress of subscriptions.
What is the minimum investment amount?
- Investor Shares: Minimum of 4 shares, corresponding to USD 500,000.
- Bonds: Minimum of 1 bond, corresponding to USD 125,000.
When will the Bonds be repaid?
The Bonds have a maturity of up to 9 years but can be repaid earlier, starting from 3 years after issuance, depending on DCRF’s financial position and market conditions.
Can I sell my securities?
Yes, the securities will be tradable on the Dutch Caribbean Securities Exchange (DCSX) once listed. Investor Shares will be tradable after their dematerialization and listing, and bonds will be tradable after their issue date. Note that sales are subject to the terms and conditions governing the securities.
What fees and taxes apply to my investment?
Investors may be subject to a subscription fee, Value Added Tax (VAT), foreign exchange license fees, and other related transaction costs. Please consult with the Fund Manager or your authorized broker for a breakdown of applicable fees and taxes.
How will I be kept informed of any updates?
DCRF will regularly publish news and relevant updates on its website, and DCSX will also publish material news that might affect the return, yield, pricing, or trading volume of the securities. These updates will also be communicated to authorized brokers.
Can I subscribe in a currency other than USD?
Yes, investments in currencies other than USD, such as EUR, can be made but must be converted at the applicable bank exchange rate. All payments from DCRF to investors will be in USD.
What happens if DCRF cannot repay the Bonds or discontinue operations?
While the Bonds are backed by assets, there is no guarantee of principal protection. If DCRF cannot meet its financial obligations, bondholders will be given priority in repayment from the sale of the assets, followed by shareholders. However, there is a risk that investors may lose some or all of their invested capital.
What is the legal structure of DCRF?
DCRF is a public limited liability company (N.V.) incorporated under the laws of Curaçao. It is structured as a real estate investment fund focusing on real estate in the Dutch Caribbean.
How is the property value calculated in the Loan-to-Value (LTV) ratio?
The property value includes the investment value with an added 2.5% annual indexation. However, DCRF aims to acquire assets at a discount by investing in bulk, which could result in a higher market value than projected.
How does DCRF manage risks associated with high-interest rates?
DCRF prioritizes equity issuance and delays bond issuance to manage its cash flow efficiently. The fund’s Interest Coverage Ratio (ICR) is projected to remain above 2.0, and the bonds are callable after 3 years, giving DCRF the flexibility to refinance when market conditions are favorable.
How does DCRF handle market risks such as political instability or natural disasters?
The fund diversifies across properties in multiple jurisdictions, focusing on acquiring hurricane-proof properties in Sint Maarten. By holding the assets for 8 years, the portfolio is significantly de-risked, allowing for a stable exit strategy.
Are financial projections available to substantiate expected results?
Yes, consolidated profit and loss statements, along with cash flow projections, are available in the prospectus, outlining the expected income and expenses over the fund's lifecycle.
