Prestige Group

D

Daddy

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Has anyone had any dealings with them or stories to relate.

I am thinking of investing in a Polish Property Fund with them.

Thanks.
 
I met them once when I was considering something in London. In the end, the numbers didn't stack up, contrary to their insistence that they did. They were making some bold assumptions about capital appreciation....maybe it would happen, maybe not.
My personal opinion is that they are reputable and professional and if the deal they're showing you makes sense, i think they're good to deal with. Just remember that they are salespeople at the end of the day, and you will need to work your own numbers, no matter what numerical picture they give you.
 
This raises an interesting point.
If one is investing in a Property Fund via a Life Assurance policy, projected values are regulated in that one can only prepare projections based on a 6% or 8% growth rate.
However, in the case of non-Life Assurance structures (e.g. syndicates etc), there appears to be no guidance/regulation as to the assumptions adopted by the promoters.
As a result, there are a number of investment offerings doing the rounds where the IRR is purely subjective (and often takes the most optimistic outlook- ignoring any risks such as currency, political risk etc).
That's not to say that a Polish property fund might not do very well. It might, but one needs to take a slightly skeptical view of some of the projections doing the rounds.
 
Thanks for the input.

Prestige are going launching a € 20 million Residential property scheme offering Returns of 80% over 5 years. The total fund is € 100 million but only seeking €20 million from the general investor. Min investment is 50k.
Concentrating on Warsaw.
In today's indo small article states an investment of 100k will have a pre-tax return of
€ 174,757 in the 5th year with a 3pc mgmt fee. Talking about 16% per annum not gauranteed. I think your initial capital outlay is gauranteed
by underwriting. Anything over 16% prestige keep.
It seems a good play on the Polish market and they seem very confident of where the market is going there.

Thanks again
 
"they seem very confident of where the market is going there"

Is this the guys doing the selling......
 
"they seem very confident of where the market is going there"

If they weren't confident about it would they tell you?
 
Begs the question...with the likes of Oregon Investment BV...the min investment amount is 100k...but who are they ..what is to say that these guys do a dissapearing act once they get your money! Or even after 6 months just state that things did not go as well as expected & that your fund has declined now down to €10k....
 
i think to be fair orf have a history in uk investments
Have heard that they have not yet bought any property for the baltic fund which begs the question as to how they can calculate the irr?!!
 
As I understand it your capital outlay is underwritten so they cannot walk with your 50k capital outlay.

Rough calculations invest 50k and if you get the return they say then you
receive back approx 87k subject to tax. I presume this is at CGT of 20%
currently + management fee brings return down to maybe a net 28k.
They say its low risk.

On the other hand if I was to stash 10k in for the next 5 years to an AVC
and get tax relief amounting to 23k there's not a lot in the difference and over the 5 year period I would at least hope the pot is worth 73k after 5 years versus the Polish pot of 78k.

Do my figures look about right ?
 
I would be more inclined to focus on who the equity is being raised for, i.e. the real estate company in Poland. Does anybody know anything about this aspect of the proposal?
 
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