Frequently Asked Questions
Which questions are we asked the most?
Why did the WP group set up an investment fund?
WP Hotels & Events set up a real estate fund to move away from bank financing and associated annual repayments. To allow for continued, uninhibited growth, we decided to split the property strand from operations, which is very much the norm within the hotel industry.
Am I investing directly in a hotel room, a building or in real estate opportunities?
You will be indirectly investing in real estate, through the purchase of shares in WP Real Estate, who in turn will invest in further real estate. As such, you are investing in the entirety of our real estate portfolio. Your investment is therefore not contingent on one building or one room.
Who is responsible for leasing and managing the properties?
WP Hotels & Events has a management contract with WP Real Estate for the fund's entire property portfolio.
This covers the leasing of apartments, commercial properties and car parking facilities, as well as the running of hotels, paying a fixed fee to WP Real Estate regardless of the property's occupancy rate.
Who will handle the maintenance, insurance and property charges of the property portfolio?
The management agreement between WP Real Estate and WP Hotels & Events provides that WP Hotels & Events is liable for maintenance, insurance and property taxes. That means that we in WP Real Estate do not incur any associated financial burdens.
Does WP Real Estate also have any bank loans?
Today, there are still a few bank loans in operation, although on very favourable terms. However, these are being phased out, with new properties being incorporated without the need for such loans.
Who can invest and how much?
Anyone can invest, whether as individuals or organisations, starting from a minimum of €105,000.
How much will my investment yield?
Today, there are three components to projected returns: (you will find up-to-date figures in the brochure)
- Direct annual cash dividend
- Annual 1% spending budget within the group
- (substantial discounts)
- Annual property value appreciation (to be delivered upon exit)
How long should I invest for?
Shares may be sold at any time. Full capital gains (including property value appreciation) will be realised when properties are sold. The current strategy is to grow the fund to around €100 million, before selling it in its entirety to an institutional investor in 10 years or so. At that point, the aim will be for all investors to achieve capital gains.
How and when can I sell my shares?
You can sell your shares at any time, provided you have a buyer. However, the new buyer must be submitted to the fund and will have to go through the anti-money laundering procedure.
After a period of five years, WP Real Estate can also buy the shares back itself.
Can I gift my shares or pass ownership to my partner or children?
You may gift your shares to a partner or children at any time. We will support your solicitor with all necessary information in this regard.
