The private debt asset class known as “Preferred Capital” is considered to consist of the execution of purchase and sale agreements for saleable units in one or more real estate projects. , with advance payment of the price, along with the execution of options to rescind such agreements, whereby the Fund’s company and the real estate developer or owner of the assets, while committing to enter into the promised sales agreements, acknowledge the possibility that such commitments may be rescinded (“Project”). These transactions will be secured by an insurance policy or a bank guarantee, in accordance with the provisions of Article 138 bis of the General Law on Urban Planning and Construction.

The financing structure is as follows:

• Payment for the purchase agreements is made once the building permit is approved, which allows for the sale of off-plan units to begin, along with their respective warranty policies.
• The real estate company pays the premium to the fund on a regular basis.
• As the real estate company sells off-plan units, it has the option to replace them with other units of equal or better quality.
• Finally, the real estate company exercises its termination option by paying the full principal amount to the fund.

It comes with the following warranties:

• Financial: A pre-sale guarantee policy, required by law, that covers 100% of the principal in the event that the real estate developer goes bankrupt or fails to deliver the units in accordance with the terms and within the specified timeframe.
• Real Estate Agencies: Pre-sale agreements for discounted units allow you to purchase properties at a very low cost if the real estate agency fails to pay the premiums (in which case you lose your right of rescission) or if it does not exercise its right of rescission.

The structure is shown below in graphical form: