Discover Meta Estate Trust's development strategy 

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Benefits for investors

Meta Estate Trust offers a series of advantages by providing exposure to the real estate investment market while addressing associated inefficiencies.

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Highly efficient with minimal risks

The activity is undertaken by a competent team with expertise and a deep knowledge of the local real estate market. The team can first assess and manage the risks associated with this type of investment, and secondly identify rare opportunities that generate high investment returns.

Liquidity

The ownership of shares in a listed company is primarily liquid. An investment in real estate has a considerably lower degree of liquidity, which is a real disadvantage for investors. Shares in Meta Estate Trust represent a share of a whole real estate investment portfolio and can be freely traded on the Bucharest Stock Exchange. With Meta Estate Trust, the real estate investment becomes liquid.

Adaptability to market cycles 

The investment policy involves a specialization in two strategic pillars with polar risk-return profiles. The capital allocation between the two pillars is flexible and acts as a lever to adapt the investment portfolio to different market cycles.

Democratizing investment through minimal capital requirement to invest

Real estate investments have high capital barriers and exclude a wide range of investors who do not have the availability to allocate the considerable amount of capital that this asset class requires. The nominal value of 1 RON/share MET opens up the possibility for any investor to access the real estate market.

High bargaining power through a large capital holding institution

A large investment ticket manages to obtain a considerably lower entry price, having a higher bargaining power with local entrepreneurs. In addition to the entry price, we can also talk about access to a more sophisticated class of investments such as equity associations with profit sharing or mezzanine financing. These opportunities are not eligible for an individual investor.

Diversifying risk through a large-scale portfolio exposed to different locations and market segments

The real estate market is generally highly segregated and can have different dynamics depending on the area and segment. The exposure of an isolated investment thus has much higher risk in the context of market cycles compared to a portfolio of investments located in different geographical areas and market segments.

Investment typologies

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Co-Developing (Partnership with Developers with Profit Sharing/Mezzanine)

This type of investment involves entering into a partnership with a real estate developer for one or more specific real estate development projects with the goal of sharing the returns generated from this activity.

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Distressed Assets

This investment type is based on the mechanism of forced sale that banks or any other creditor applies in the event of a debtor's default. It does not have a predefined structure and can vary from case to case, but generally applies to projects in banks that reach the execution phase. The value opportunity comes from the creditor's need to force-sell the property, which involves a substantially reduced price compared to the market value or exploitation of the asset. Most of the time, the property represents an unfinished real estate development project, and the opportunity requires additional investments and work to maximize the sales value.

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Call/Put-Option on Real Estate Assets 

This type of investment involves pre-contracting a future or completed property. The transaction price is set at a considerable discount compared to the market price (30-35%), and the seller has the option to redeem the pre-contract at a lower margin (20-25%). The redemption period is generally between 9 and 12 months, and the investment risk MET remains only a market risk, not a default risk (in the scenario where the seller does not exercise their option, MET acquires a property that can be resold at a higher margin).

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Bulk Acquisitions

This type of investment involves purchasing a package of newly completed apartments at a discount and reselling them individually at market price within a 6-12 month period. In most real estate development projects, there is unsold inventory of apartments at the time of project completion (10-15%). In this situation, the developer prefers to sell this remaining inventory of apartments at a discount in order to close the project and invest the released capital in other new projects.

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Early Stage Acquisitions

This type of investment involves pre-contracting residential units in an early-stage real estate project and reselling them upon completion. The goal is to obtain a momentary discount (early stage).

Alexandru Bonea

Co-Founder and Managing Partner Meta Estate Trust

The investment strategy is based on a mix of investment typologies with different return and risk profiles, so as to build a diversified and flexible portfolio that can easily adapt to market cycles, therefore offering attractive returns with minimal risk. 

The MET investment portfolio is distinguished by its adaptability and flexibility, essential qualities in a dynamic and changing real estate market. Its unique investment strategy is based on a well-diversified mix of assets, capable of generating solid returns in times of economic growth and maintaining value during periods of stagnation.