STRONG FOCUS
ON HOTEL-RELATED
REAL ESTATE.
ON HOTEL-RELATED
REAL ESTATE.
Current Funds Available
- Melliore Fund I
- Melliore Fund II
- Melliore Fund III
- Coming up in 2022
- Coming up in 2022
Become an investor
Melliore fund I
Melliore Fund I consist of two sub-funds: Melliore EF 1 and Melliore ER 1.
Sub-fund Melliore EF 1 — acquiring underperforming hotels. Hotel management and brand provided by Mogotel for 3 to 5 years.
Sub-fund Melliore RF 1 — aquaring lease rights. Leasing underperforming hotels. Hotel management under long-term agreements with world-known brands.
Sub-fund Melliore RF 1 — aquaring lease rights. Leasing underperforming hotels. Hotel management under long-term agreements with world-known brands.
The Fund
Melliore Fund I
Sub-Funds
Melliore EF 1 (equity fund)
Melliore RF 1 (rent fund)
Melliore RF 1 (rent fund)
Fund Manager
SIA «Melliore Asset Management AIFP»
Registration number: 40203207363
Registration number: 40203207363
Fund Domicile
Republic of Latvia
Fund Term
May 1, 2029 (10 years)
Investment Certificate
One investment certificate is EUR 20,000. Investment Certificates are divisible and calculated to the nearest four decimal places
Initial Offering Term
The initial placement period is 24 months or until the date of sale and payment of all the investment certificates
Commitment Size
Each investor can invest unlimited number of investment certificates, but not less than one Investment Certificate equalling EUR 20,000.
Fund Manager has set his own minimum commitment size of EUR 100,000 equalling five Investment Certificates.
Fund Manager has set his own minimum commitment size of EUR 100,000 equalling five Investment Certificates.
Fund Rules
This Investment Memorandum does not include full Fund Rules as prepared by the Fund Manager and those are available upon request from the Fund Manager.
Net Asset Value (NAV)
Net Asset Value is the difference between the Sub-Fund’s total assets and total liabilities.
Valuation Principles
The valuation of real estate investments will be carried out in accordance with the Latvian and international real estate valuation standards International Valuation Standards (IVS), the valuation is performed by the Fund Manager based on the valuation of an external certified valuator.
Acquiring underperforming hotels. Hotel management and brand provided by Mogotel for 3 to 5 years.
Investment targets
Diversified investments mainly in the following real estate properties (including real estate in the development phase that has not yet been put into operation): hotels, real estate development projects and land plots.
Underperforming hotels in the EU and EEZ capitals with preferred size from 100 to 150 rooms.
Underperforming hotels in the EU and EEZ capitals with preferred size from 100 to 150 rooms.
Type of Investments
Melliore EF 1 invests in real estate:
- Acquiring properties that are expected to generate stable and predictable cash flow during the Fund’s life;
- Acquisitions of additional investment properties are expected to significantly increase their initial value;
- Purchase of properties for which the Fund expects the market price to increase during the Fund's life;
- Concluding contracts for the construction of real estate objects, including reconstruction;
- Concluding contracts for the value increase of real estate;
- Concluding contracts for the leasing and leasing of real estate objects;
- Investing in financing real estate investment projects.
Dividend policy
Target annual return to the investor is 25%:
- Full amount of dividends from the operation of hotels will be distributed to the investors annually;
- After each asset sale, portion of the proceeds will be distributed to the investors (rest will be reinvested);
- At maturity, all assets will be sold and proceeds distributed to the Investors.
€ 50 M
target size
€ 100 000
minimal сommitment
25%
target annual return
Leasing underperforming hotels. Hotel management under long-term agreements with world-known brands
Investment targets
Diversified investments mainly in the following real estate properties (including real estate in the development phase that has not yet been put into operation): hotels and real estate development projects.
Prime location hotels in the largest tourism cities in the EU and EEZ with preferred size from 50 till 200 rooms.
Prime location hotels in the largest tourism cities in the EU and EEZ with preferred size from 50 till 200 rooms.
Type of Investments
Melliore RF 1 invests in real estate leasing rights:
- By purchasing a lease or entering into a lease agreement for an object that generates a stable and predictable cash flow;
- Acquiring leases on properties or entering leases on properties that require additional investment to significantly increase the cash flow;
- Purchase of lease rights or conclusion of lease agreements for objects for which the rental market price is expected to increase;
- Concluding contracts for the leasing and leasing of real estate objects
Dividend policy
Target annual return to the investor is 25%:
- Full amount of dividends from the operation of hotels will be distributed to the investors annually
€ 20 M
target size
€ 100 000
minimal сommitment
25%
target annual return
INVESTMENT THESIS
Market
Hotel real estate market in Europe has strong growth prospects for the foresaable future, fuelled by worldwide economic growth and growing number of international tourists.Experience
The Fund’s management team is set to utilize and apply the experience of themselves, Mogotel and MV Hotels to bring the value-add for the Melliore Fund I investors.Proven business model
Both sub-funds — Melliore EF 1 (equity fund acquiring hotels) and Melliore RF 1 (rent fund contracting lease rights of hotels) — are set to utilize on proven business models for strong return generation either through complete organisational turnaround or by attracting long-term lease agreement.Target focused
Melliore Fund I is set to 100% focus on investments in hotel-focused real estate or real estate lease rights, giving investors guaranteed exposure to the segment.90%
average occupancy in all hotels