SELFIBA is a special finance model for real estates in Spain. In the context of the SELFIBA concept, interesting objects are acquired where the existing mortgage commitments (up to 40% of the market value is accepted) are settled. The seller is free of debt and possible, threatening coercive measures are averted with this concept. Furthermore, in individual cases further liquidity is made available for the seller.
Financing for property owners
In turn, the seller receives a re-purchasing option for a period of one year during which a premium of 8-20% is agreed upon. Should the seller not make use of the right of repurchase then SELFIBA puts the object on the market together with the leading Real Estate agencies. As all objects are only acquired well below the market value, SELFIBA achieves margins of 30-40% for the selling transactions. Here you learn more about SELFIBA for propety owners.
PROPERTIES AND CRITERIA
SELFIBA has established clear criteria for projects it accepts. In general, conventional assessment criteria are applied, such as quality, return on rent, maintenance effort, location, and reusability. Properties that require extensive renovation and partially completed properties are generally not admitted. The amount of investment for individual projects is between 300 thousand and 5 million EURO.
SELFIBA for Investors
Private and institutional investors can participate in the SELFIBA model.
Participation in the holding
Private and institutional investors can directly participate in the SELFIBA holding corporation (Spanish holding). Up to 49% of the company shares are available. Based on the current business plan with a total financing amount of 100 million EURO, the minimum participation is 1 million EURO. The partners of the Holding participate proportionally in the overall success of the group. The number of company shareholders is limited to 20. The medium-term plan is to place the SELFIBA Holding on the stock exchange in order to gain additional liquidity and international growth. Existing SELFIBA shareholders will receive preferred shares.
Investments in participations
Investors with a budget of over 50,000 EURO have the opportunity to co-invest in SELFIBA participations of the SELFIBA SPAIN corporation. The investors receive an above average fixed 4% interest rate for their contribution in the first year and 8% from the second year on.
Learn more about SEFIBA for investors here.