Issuer
OCITY II – Compartiment 1
Legal structure
SCA SICAV – FIAR
Domicile and jurisdiction of the fund
Luxembourg
Launch date
11/2022
Closing date for subscriptions
12/2030
Subscription price
EUR 1.000
ISIN Code
Class OB : LU2558252834
Class OBS : LU2558252917
Class OBSI : LU3113252640
Blocking duration
24 months
Maturity period
Class OB : Minimum duration of 60 months, extendable in accordance with the provisions of the prospectus
Class OBS : Minimum duration of 60 months, extendable in accordance with the provisions of the prospectus
Class OBSI : Minimum duration of 36 months, extendable in accordance with the provisions of the prospectus
Distribution objective
Class OB : 8% p.a. fully paid at maturity
Class OBS : 6% p.a. pro rata (temporis) quarterly
Class OBSI : 10% p.a. fully paid at maturity
Minimum subscription class
Class OB : EUR 250.000
Class OBS : EUR 250.000
Class OBSI : EUR 100.000
Subscription entitlement date
Deferred (see table in prospectus supplement, bond category
concerned)
Subscription fees
From 0% to 2% (see conditions in prospectus)
Early redemption fees class
Class OB : 2%
Class OBS : 8%
Class OBSI : 6%
Management fee
1% of the annual GAV
Date
31/12/2024*
31/12/2023*
*Non audited net asset value
You can scroll from left to right to see the whole table.
Investment risks
Investors who plan to purchase bonds of the OCITY II real estate fund should consider the specific, non-exhaustive risk factors set out below. Such risks, alone or combined, may negatively affect the income and profitability estimates of the fund and lead to a decrease in the value of bonds.
Dependence on cyclical developments
OCITY II invests mainly in residential, office and commercial real estate in Luxembourg. The fund is therefore dependent on the economic development and the general economic framework conditions. For example, a poor economic development can lead to many properties owned by the fund remaining vacant.
Limited liquidity and portfolio expansion
The real estate markets in Luxembourg have limited liquidity, particularly with regard to large properties. This can have negative effects on price development. There is a risk that short-term sales and/or purchases of large-scale properties may, depending on the market situation, sometimes not be possible or only be possible through price concessions.
There is a risk that your investment will not be fully exposed to the real estate market because of a lack of opportunity to acquire properties. There is also a risk that you will not be able to sell the assets or that you will be able to sell them at such a discount that the expected return cannot be achieved or that the sale of bonds may be limited. This would also have a direct effect on the investment return and the tax value of the fund bond at the end of the year.
Rate fluctuations
Changes in interest rates, particularly mortgage rates as well as inflation and/or inflation expectations, may have a negative impact on the value of real estate, on the growth in rental income and on financing costs. However, in accordance with the investment fund agreement, the maximum debt ratio must not exceed 80% of the market value of all properties.
Environmental risks
The fund’s management reviews properties at the time of acquisition to identify potential environmental risks. If significant and identifiable environmental issues or nuisances are detected, these are factored into the calculation of foreseeable costs and reflected in the property’s purchase price. Such issues are addressed through an agreement with the seller, under which the seller releases the fund from any liability in case damages arise, potentially leading to the cancellation of the property acquisition.
However, the possibility of undiscovered contaminated sites being identified at a later stage cannot be ruled out. The existence of such sites could result in substantial unforeseen remediation costs, impacting the valuation of the fund's assets and its shares.
