Primary target of our investments is South-East Europe (SEE). It is a region with huge investment potential. After the global financial crisis, the region has averaged annual gross domestic product (GDP) growth of 2.3 percent meaning its growth was stronger than the annual
average for the European Union (EU) at 1.2 percent (source: data.worldbank.org).
Last-year’s Q3 growth reached record levels at 8.2 percent and gradually moderated in Q4 of
2017 to 4.7 percent which is still well above average of EU. Regional GDP growth for 2017 is
estimated at 5.5 percent, which is the best performance of SEE region in eleven years.
These trends will continue in the forthcoming years. With a combined market size of 21 million people, young workforce and competitive costs of production the region has significant
untapped investment attraction potential while majority of countries are either candidates for
accession to the EU (Serbia, Montenegro, Macedonia, Albania) or potential candidates (Bosnia
and Herzegovina, Kosovo).
The SEE region is regarded as the region with the highest mid-term potential from distressed
deals within the EU. Our focus in a first phase is on four countries: Greece, Cyprus, Croatia
and Slovenia, all members of EU.
Banks in those countries are saddled with around 130 billion euros in non-performing loans
which in Greece equal to almost 60 percent of the economy and in Cyprus to around 43
percent. The financial sector in Greece is trying to deleverage by getting rid of as many NPLs
as it can, making it a top policy priority for creditors, including European banks and the IMF.
Greek banks have been accumulating NPLs through their balance sheets while they have
been taking generous provisions against them thus making available a lot of properties at
below-market value.
that is cool but this is the most important thing I think:
THE ELES PLATFORM
Platform development
The aim is to develop the ELES platform to a BETA stage with basic (buy, rent and development overview) functionalities already before the start of ICO. Timeframe is presented in
Roadmap below.
The ELES platform will allow ELES holders to vote on which projects are to be adopted by
Elements Estates. This decision-making ability will have an impact on the entire ELES ecosystem and ultimately contribute to the decision if the company will enter into specific, pre-chosen projects. Participants will be able to review summaries on different projects.
The platform will also display listed reports for projects. These reports will be based on all
standard analyses (quantitative/static, and qualitative/dynamic with cash-flow projections)
developed in partnerships with our real estate advisors from CBRE, Colliers and others, and
an algorithm developed by the Elements Estates team that considers the level of risk and
the associated rate of return. As such, the algorithm takes the following parameters into
consideration:
O Class of real estate (residential, commercial).
O Phase of development of real estate.
O Location of the property.
O Market attractiveness of the real estate.
O Required yearly yield.