The purpose of investing in real estate and properties is ultimately to get a positive return on the investment.
This interest of property investors is usually in direct opposition to the interests of other parties in the property market; the seller of a property wants to get the highest possible price and the brokers and managers of investment properties want to get the highest possible fees. These costs all have to be paid by the investors and will tend to reduce the return on investment.
The “bright” business idea of Swiss Property Ventures AG is to align the interests of investors, sellers, brokers, and managers by making all parties “owners” of the resulting property investment project.
In our projects, a seller has to leave a significant part of the agreed property purchase price as a long-term mezzanine loan in the project. This leaves the seller “owning” part of the project – and with a keen interest in the long-term profitability of the overall property project.
The roles first as broker of a property deal and later as managers of the property and the associated property company are all performed by Swiss Property Ventures AG. By always participating with a strategic position in our own projects, the interests of Swiss Property Ventures AG are always primary as “owners” and, hence, naturally aligned with those of our co-investors.
The alignment of interests by making all parties “owners” of our property investment projects is simply a very effective strategy to ensure a strong common focus on creating profitable projects – which then leads to our ultimate purpose; getting a positive return on the investment!