Investment policy

The guideline for Alboran’s management and investment policy are the four meaning of Hamsa hand itself: prosperity safety, abundance and protection.

• Prosperity
We can make money by investments only. That means that keeping the cash reserves at a minimum level is a top priority. Investing majority of its equity into rentable apartments, Alboran’s expenses are covered by rental fee income. The necessary liquidity for possible redemptions is guaranteed by the relatively long redemption period and the mass of average, easy re-saleable apartments in the portfolio.

• Safety
We do not speculate with your money. Assets temporarily not invested into real estate can only be placed into bank deposits and highly rated bonds. We expressly refrain from any speculative financial operations. Avoiding financial risks the Fund does not use leverage for its operations.

• Abundance
Whilst the Fund prefers stabil and long term investments, the real estate market is cyclical. There might be periods when the demand for real estate will decrease or the prices will move downwards for a while. In that cases speed counts: who react faster, can multiply the regular yield. Therefore we focus on being standby and act as fast as necessary. The portfolio does not contain unique or special real estates, but on the contrary: we invest in the least trend-sensitive residential properties, mostly in typical 2-3 bedroom apartments, i.e. the most in-demand, easy-to-sell and easy-to-lease segment. The average value of an acquisition does not exceed 0.6 MEUR.

• Protection
Protecting the value of investments the Fund builds a diverse portfolio of apartments of different characteristics: short-term (tourism) rental, long-term (expats and locals) rental, developments and recontructions. Keeping the risks on the minimum, not more than 1,5 MEUR or 15% of the net asset value can be invested into properties of the same risk community (e.g. same building, urbanisation or development project).