Total returns on property have a low correlation with stocks and bonds, making this asset an important element of an investor’s portfolio. Property, as a complement to stocks and bonds in a portfolio, provides a higher return for a given level of risk, plus attractive cash flows in an environment of low interest rates. At Catella, we have both the breadth and depth of expertise required to find the most suitable properties for you as an investor.
How it works
As an arranger, Catella has created and organised property clubs for a number of years. A property club is a company formed and capitalised using equity and bank loans for the purpose of acquiring and then managing a specific property. The equity is raised from a number of investors, who together form the property club. A management and administration organisation is appointed within the company, after which the property is acquired following technical, financial and legal due diligence. You do not have to interact with tenants, you avoid exposure to the stock market risk associated with a listed property company and you do not require capital of an institutional nature.