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Liquiditeit zonder liquidatie

Private Commercial real estate investments are traditionally known for their illiquid nature, and typically have 5-7 year holding periods.  This is because real estate is a physical asset that can not be quickly sold without the potential for a significant loss in value.  At REICG, we have designed a unique liquidity strategy that addresses this challenge head-on, for individual investors.  It is our operating plan to reserve 10% of the free cash-flow from our future portfolio of assets, to create periodic liquidity events for our universe of individual investors.  This liquidity program is made possible by our pan to only acquire stabilized, cash-flowing, Commercial Real Estate assets, with indefinite holding periods.

Furthermore, our liquidity program draws it strength from our plan to attract a broad base of small individual investors, which diversifies the investment timelines and needs among the group. This diversity increases the likelihood that redemption requests can be efficiently managed, as not all investors will seek to exit at the same time, maintaining the fund’s growth trajectory and compounding effect. This structure provides a thoughtful solution to the traditionally illiquid nature of real estate investments, potentially giving our investors both the growth potential of real estate and the flexibility they desire.

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Het liquiditeitsprogramma put zijn kracht uit de wet van de grote aantallen.  

All shares purchased are able to participate in the redemption program when REICG opens the fund for redemptions.  REICG is unable to offer redemptions concurrently with an open offering under SEC exemption Reg A + so REICG will periodically close our offerings and open a redemption period.  Investors can then submit a redemption request, on our mobile app or in our investor portal.  It is our intention to fill those redemption requests with 10% of the cashflow reserved from future property cash-flow in our investment portfolio.  We plan to buy back your shares at the then current Net Asset Value (NAV) per share.

It is our intention to continue to create new offerings and raise new capital from new and existing investors, so redemptions will only be available between open offerings.  We intend to be as transparent as possible and give investors as much notice as possible so they may plan their capital needs effectively. 

It is our belief that it is highly unlikely that redemptions will be over subscribed at any period event, however if that does occur, investors will be redeemed on a pro-rata basis monthly and REICG may delay the launch of any new offering until all redemptions have been filled.  Investors can cancel their redemption request at any point before they are in the process of being fulfilled.

The Net Asset Value will be the aggregate value, at a given point in time, of all equity in properties owned by the fund, cash available for investment, and business assets.  REICG currently does not own any properties, have any cashflow, or possess any business assets. 

However, because we intend to invest in properties that produce cash-flow the Net Asset Value is projected to grow periodically, upon the acquisition of additional properties.  In addition, we plan to keep the book value of properties-owned constant, unless there is a material change in the cashflow of a given property.

No, shares are not publicly traded because we are not a publicly listed firm.  It is our belief that being publicly listed would open up REICG shares to the volatility of the public markets.  Moreover, being private could allow our share value to remain more stable than if we were publicly traded. 

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