Guys do some homework
read whitepaper - there is almost everything you need to know - read slowly so you will understand
https://elementsestates.io/ElementsEstates-whitepaper.pdfNPLs and the opportunity After an extensive research, Elements Estates has concluded that the timing is ideal to buy distressed assets from banks portfolios. There are still a large number left after the financial crash of 2008 and the banks have a level of urgency to remove these from their holdings, they will usually do so at an under-valued rate as even this is more effectively as if they step out of their core business and start the construction finalization processes by themselves.
And in fact, opportunities as such are never completely gone as it appears that there are always some regions passing through difficult economic times. Exactly than these types of properties appear and offer a unique opportunity.
The Elements Estates team will look at each property individually. As with every investment, the most important factor when measuring the investment potential is the entering price . The difference between entry and exit price is the sweet part of distressed deals and will enable the Elements Estates team to extract the hidden value from the underlying real estate assets, building a sound and stable base for the token value .
Essentially as the value of the real estate portfolio increases in value, the Fund can place its assets in more projects . At the end this means more units for sale or rent which will yield a higher demand for ELES tokens and result in significant increase of the value of each token. This is because the increased use will generate an appreciation of value, especially when we consider that with every transaction 50 percent of the tokens in transactional value is lockeddown.
Region overview 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.
All countries with a partial exception of Slovenia are major powerhouses in tourism while Croatia has the highest potential . Croatian tourism is expecting an increase of 15 percent in investment compared to the current year or nearly 40 percent more tourism investment than in 2016. Almost billion euros will be invested in Croatian tourism only in 2018 in hotels, other types of accommodation facilities and other areas .
Potential of these countries remains high due to growing instability and risk of terrorism attack in some other major tourism economies in Middle East and North Africa . This will increase their attractiveness and demand for tourism and residential assets.