MIMCO Grand-Ducal

Market information

The Luxembourg market has developed rapidly over the last ten years, standing out from most other European countries. The real estate market remains strongly influenced by the country's unique geographical and demographic situation and this trend is expected to continue. Luxembourg's attractive tax system attracts new investors every year, particularly high net worth individuals. In terms of Gross Domestic Product (GDP) growth, forecasts by the government and international bodies such as the International Monetary Fund (IMF) remain optimistic. Growth in the real estate sector will also be supported by technological innovation, sustainable development issues and new sources of financing.

Residential real estate

Every year, approximately 13,000 new residents come to live in Luxembourg and the population has increased by 20%* since 2010. Despite a construction sector that has seen a doubling of the number of people employed over the last 20 years, the construction of new housing does not keep pace with the natural increase in the population, which is close to 2% per year. According to STATEC, approximately 3,000 dwellings are delivered annually, while demand is more than double.Label ISR

The MIMCO Grand-Ducal fund has obtained the SRI (Socially Responsible Investment) certification for sustainable and responsible investments.

*Source: BCEE (The State Bank and Savings Fund)

Economic information

The world's economies are facing multiple challenges, both economically, socially and politically. The Grand Duchy can rely on its stability and positive economic outlook, as evidenced by the AAA rating awarded by the international rating agencies Fitch, DBRS and Standard & Poor's, to face these challenges.

Key features

1st
 Country with the highest GDP per capita in the world in 2021 (IMF)
2nd
 Global position in investment fund management with over €5,859 B AUM in 2021 (CSSF)
3rd
 Most resilient economy in the world in 2022 (FM Global Resilience Index)
24,4%
 Of GDP public debt in 2021 (STATEC)
5,2%
 Population unemployment in December 2021 (STATEC)
12%
 Increase in house prices per sqm – Q4 2020 to Q4 2021 (STATEC)
8,9%
 Annual increase in property prices since 2009 (STATEC)
AAA
 Rating of the Grand Duchy of Luxembourg by Fitch, DBRS and Standard & Poor's

Investment policy

MIMCO Grand-Ducal is dedicated to investing in real estate developments or properties to be refurbished with high added value, in line with the investment strategy.

To achieve the investment objective, the main goal of the MIMCO Grand-Ducal fund is to achieve capital growth in the short/medium-term by capitalizing on existing investment opportunities in the Luxembourg real estate sector.

The investment objective of the fund is to achieve medium-term capital growth and an appropriate return by applying the principle of risk diversification through direct or indirect investments via special purpose entities or entities not wholly or partly owned by the fund and domiciled in Luxembourg or in another country.

MIMCO Grand-Ducal focuses its investment strategy on properties that are primarily intended to become real estate development projects in the residential or office sector, various types of real estate for retail activity or real estate offering refurbishment opportunities. The fund reserves the right to acquire any real estate for business purposes.

The fund will provide investors with exposure to diversified, high quality real estate assets covering the Luxembourg market with value added assets that will be bought in the market either through auctions, inheritance sharing or because of arbitration by the owners.

Target operations

Land assets for development of real estate projects

Buildings to be refurbished / change of use

Auctions, inheritance divisions, arbitrations

Purchases of potential forward funding sales

Purchase of mortgage-backed securities exclusively for real estate assets

Target asset category

Offices

Residential

Specifications
Structuring
Asset value
Risks
Documents
Management company
MIMCO Asset Management S.A.S. (MIMCO AM) AMF approval n° GP-21000018
Issuer

MIMCO Grand-Ducal

Legal structure
Limited stock partnership - "Other FIA" status
Domicile and jurisdiction of the fund
France
Target size of commitments
The Management Company targets a total amount of Commitments in the AIF up to a maximum value of €20.000.000,00
Launch date
30/09/2021
Closing date for subscriptions
30/06/2023
Subscription price
At the higher of the nominal value + share premium and the net asset value
Lock-up period
12 months
Distribution target

In fine

Effective date
Commencement date + 90 days
Depository Bank / Registrar
ODDO BHF France
Auditor
Grant Thornton France
Ad hoc auditor on the specific benefits conferred
Hermesiane SAS
Use of debt
Capped at 80% of fund assets (leverage of 5)
Subscription fees
2 % Category A (see Information Document)
Early redemption fee
6% on a sliding scale (see Information Document)
Management fee

1,00% of the gross assets of the fund (including 0,76% management fee from the Management Company and 0,24% administrative transaction fee)

Outperformance target

S and A shares: 80% outperformance on the remaining balance above a Priority Income of 7% (see Information Document).

Eligible investors

The Fund is reserved exclusively for professional and professional-like investors in France who meet the conditions of Article 423-27-1 of the AMF General Regulations, i.e. those able to invest at least €100,000. *

* We recommend that you ensure that your overall portfolio does not consist solely of real estate assets. We remind you that the investment presents a risk of capital loss.

 

Tax framework

The tax implications depend on the individual situation of each client. It may be subject to change in the future. Investors are therefore advised to consult their own legal, tax and financial advisors regarding the regulatory, tax, domiciliary and accounting considerations applicable to them.

Capital gains for individuals:

  • Dividends received from the Fund: flat tax applying to capital gains (30%);
  • Capital gains on the sale of Fund shares: flat tax applying to capital gains (30%).

Capital gains legal entities:

  • Corporate tax rate at 26.5% (2021) and 25% (2022) subject to holding < 5% and / or less than 2 years;
  • Parent-subsidiary regime (5% of dividends subject to corporate income tax provided that the holding is > or = 5% and over 2 years.

Tax on real estate wealth:

 

In view of the Fund’s business operations, investors holding (directly or indirectly with other members of their tax household for tax on real estate wealth purposes) less than 10% of the Fund and the SPVs will not be subject to tax on real estate wealth on the value of the Fund shares.

 

Investment Eligible for Article 150-0 B TER.

 

 

The SCA

Limited stock partnership
Head office : 87 Boulevard Haussmann – 75008 Paris

The AIFM management company

MIMCO ASSET MANAGEMENT
AMF approval n° GP-21000018
Authorised under the AIFM directive
RCS Paris: 898 003 124
Head office: 87 Boulevard Haussmann - 75008 Paris
Phone: +33 1 44 70 04 36
E-mail: partners@mimco-am.com

Depository Bank / Registrar

Oddo BHF SCA
12 Boulevard de la Madeleine - 75009 Paris
RCS Paris : 652 027 384
Phone : +33 1 44 51 85 00

The auditor

Grant Thornton Paris
29 rue du Pont - 92200 Neuilly-Sur Seine
Phone : +33 1 41 25 85 85

Ad hoc auditor on the specific benefits conferred

Hermesiane SAS
89, Boulevard Haussmann 75008 Paris
Phone : +33.1.47.46.81.44

Share class S1 Share class S2 Share class S3 Share class A1 Share class A2 Share class A3 Share class A4
12/31/2021 €1,005.95 €1,005.95
03/31/2022 €1,021.40 €1,004.14 €1,004.14
06/30/2022 €1,000.00 €1,000.00 €1,000.00 €1,004.78
09/30/2022 €1,068.85 €1,051.59 €1,034.14 €1,022.55 €1,020.70
12/31/2022 €1,000.00 €1,000.00 €1,000.00 €998.36 €996.56 €998.36
03/31/2023 €1,000.00 €1,000.00 €1,000.00 €905.67 €904.03 €905.67 €937.32

 

Investment risks


Investors considering the purchase of shares in the MIMCO Grand-Ducal Real Estate Fund (the "Company") should take into account, among other things, the following specific, non-exhaustive risk factors. Such risks may, individually or together, adversely affect the fund's income and profitability estimates and lead to a decrease in the value of the shares.
Capital risks


The Fund does not provide any guarantee of capital protection. The capital invested is not guaranteed and may not be returned or may only be partially returned.
Discretionary management risks

The Fund may not always be invested in the best performing markets or assets. The performance of the Fund may be less than the management objective and the Net Asset Value of the Shares may experience a negative performance.
Valuation risks

The valuations of the investments are used to determine the write-downs to be recorded on the lines of the investments if their reassessed value is lower than their book value.
No buy-back of Shares

The buy-back of shares is only possible after a lock-in period. At the end of this period, there is no certainty that the buy-back can be obtained.
Subscription and buy-back execution risks

Redemptions are made at the unknown price. The exact number of shares relating to the amount redeemed, rounded down, will be communicated to the investor at the time of publication of the net asset value.
Risk of over-subscription and non-service of certain requests for subscriptions

If the amount of subscription requests exceeds the amount of the transaction in which an Investor wishes to invest, Investors will be served on a first come first served basis.
The subscription may be closed prior to the end of the subscription period. Subscriptions may be closed before the end of the relevant subscription period. In this case, there is a risk that the subscription requests received at the end of the subscription period will not be fulfilled.
Leverage risks

The Company may use debt. Leveraged transactions are by nature subject to a high degree of financial risk. Leverage increases the expectation of gain but also increases the risk of loss.
Risks inherent in any capital investment

The performance of the Fund is directly linked to the performance of the companies in which the Fund is invested, which is subject to numerous risks.
Liquidity risks of the Company's Assets

The fund is a private equity fund that will invest in securities not listed on a financial instruments market. These securities have little or no liquidity. It cannot therefore be ruled out that it may experience difficulties in disposing of its investments within the timeframe and at a desired price level.
Risks related to the estimation of the value of target companies

There is a risk that the net asset values may not reflect the true value of the Fund's portfolio.
Risks related to the characteristics of the investments made by the company

The Fund will invest primarily in Luxembourg companies. Unfavourable developments in the economic, political or social situation in Luxembourg may therefore adversely affect the value of the Fund's portfolio. Furthermore, the Fund will only invest in the real estate sector. Any unfavourable changes affecting this sector, or a related sector, could have an impact on the Fund's performance.
Risks related to the activity of the Fund and/or the target companies

The activities that the Fund wishes to pursue may, in retrospect, have been the subject of an erroneous analysis of market opportunities by management and may not have met with the commercial success expected. The real estate activities carried out by the Fund, through its investments, may be a source of litigation.
Interest rate risks

Financial risk arises from the sensitivity of the Fund's assets to exposure or non-exposure to certain interest rates, notably inflation, and to market fluctuations in interest rates.
Counterparty risks

Failure of a market counterparty to pay may result in a decrease in the Net Asset Value of the Company.
Duration risks

Non-listed investments may take several years to mature. As a result, while the performance of the Fund may be satisfactory over the long term, the performance in the early years may be poor.
Investment sector risks

No assurance can be given as to the performance of a specific investment sector.
Legal and tax risks

There can be no guarantee that the structure of the Fund and/or any investment will be optimal for a particular investor or that a particular tax result will be achieved. Changes in the laws applicable to the Fund could have negative legal, tax or financial consequences for the Fund and investors.
Risks related to terrorism and other crimes

The Fund may be obliged to ask investors, including potential investors, to provide additional information to verify, in particular, their identity and that of their beneficial owners and the origin of the funds used to invest in the Fund. Any subscription may be refused if this information is not provided, or after reviewing the information received. This information may be forwarded to the competent government authorities.

Before subscribing, the subscriber must ensure that their profile, financial situation and objectives are appropriate for the product and consult the Information Document. This document is available from MIMCO Asset Management, 87 Boulevard Haussmann 75008 Paris. The information contained in this document is provided by MIMCO Asset Management.


The value of investments in MIMCO Grand-Ducal shares is inherently subject to change, both upwards and downwards, depending on MIMCO Grand-Ducal's investment objectives or strategies and on economic and market conditions.

Investment in MIMCO Grand-Ducal may involve a risk of capital loss. In view of the economic and market risks, no guarantee can be given that MIMCO Grand-Ducal will achieve its investment objectives.
To access the documentation, please enter your access codes in the form below.

Other solutions