Overview
DCRF aims to become the premier real estate investment fund in the Dutch Caribbean, focusing on high-potential luxury properties. With an initial target of USD 55M, DCRF will acquire prime assets, starting with the Vie L’Ven Resort in Sint Maarten, with plans for further acquisitions across the region.
Investment Opportunity
- Investor Shares: Non-voting Class B shares priced at USD 125,000 each, targeting high returns with strong cash flows.
- Bonds: Senior secured bonds with a 6.5% annual interest rate, face value USD 125,000, with a 9-year term, callable after 3 years.
Key Financial Metrics
- Projected Fund Size: USD 55M initial, growing to USD 200M over time.
- Target Returns: 9.41% IRR on Investor Shares, with a projected 10.95% IRR for the fund.
- Loan-to-Value (LTV): Capped at 51.6%, ensuring financial stability.
- Interest Coverage Ratio (ICR): 2.1 minimum, securing bondholder interests.
Investment Strategy
DCRF identifies, acquires, and optimizes luxury real estate in key Caribbean markets with high tourism growth potential. A seasoned team leverages early access to offmarket properties, strategic partnerships, and operational expertise for stable income and capital growth.
Projected Returns & Distribution
- Investor Shares: 80% of Net Operating Profit After Tax (NOPAT) distributed to shareholders, with a 6% hurdle rate.
- Bonds: 6.5% annual interest, paid semi-annually.
Tax Efficiency
DCRF qualifies as a ‘Curaçao Investment Company’ with a 0% profit tax rate, potentially providing a taxefficient structure for investors, who are advised to consult their fiscal advisor for personal advice.
Listing and Trading
DCRF’s Investor Shares and Bonds are intended to be listed on the Dutch Caribbean Securities Exchange (DCSX), enhancing liquidity and providing an exit pathway for investors.
Risks
Real estate investments carry certain risks, including market fluctuations and operational challenges. Prospective investors should review the full prospectus and assess their risk tolerance.
Subscription Details
- Minimum Investment: USD 500,000 for Investor Shares; USD 125,000 for Bonds.
- Subscription Period: Currently open; final approval from the Central Bank of Curaçao & Sint Maarten and DCSX listing are pending.
For further details, please contact PYGG Real Estate Fund Management B.V. frank.lammers@pygg.nl or call +5999 4629 888 ext. 101
