Overview

Twelve partnered with Rehoboth Property International (RPI) to curate an opportunity for members of its investment community to invest in a UK real estate private fund.

The private fund buys trophy real estate assets in the UK at off-market price and remodels them into service apartments, workstations, house in multiple occupation (HMO) etc. They also lease some of these properties to religious organizations.

26 qualified investors invested £160,000 in the fund. Investors who co-invested in this fund will earn an annual return of 7% in 2 years. Investors have the option of rolling over their investment after the initial 2-year investment period.

Members of Twelve’s investment community co-invested in this UK real estate private fund. This investment is held in trust for the investors to provide a seamless transfer of the tokens to beneficiaries if/when they choose. A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. FBN Quest Trustees are our trustee on this project.

Investment Thesis

According to the International Monetary Fund (IMF), the value of the Nigerian Naira depreciates by an average of 10.6% every year. Two major economic themes of the Nigerian economy in recent years have been high inflation and currency devaluation.  As a result, Investors are constantly seeking opportunities to hedge their investment portfolios against the risk of inflation and devaluation.

Given our deep understanding of the nuances of the Nigerian economy, Twelve works with its various investment partners to curate investment opportunities that help its members grow or hedge against economic risks.

Real estate is significant to the UK’s economy, The real estate market in the United Kingdom is the second largest in Europe (after Germany). The market value of commercial real estate market in the UK is worth 250billion Euros. Domestic real estate represented the largest non-financial asset in the UK as of 2014, with a net worth of £5.1trillion.

Investment Outcome

As anticipated, since the initial investment in the UK real estate fund, the value of the Naira dropped 6% against the pound in the parallel market. This implies investors in the real estate fund will not only earn a ROI of 7% per annum from their investment in the fund but also benefit from the devaluation of the Naira.

The global economy has been plagued with rising inflation since the middle of 2021. Real estate is one of the few assets that moves in tandem with inflation making it an ideal asset for every investor to hold in their portfolio in this season.

At Twelve, we have an investment research department that keeps track of the effect of economic factors on investor portfolios. We take pride in curating investment opportunities that provide our members access to options that help their portfolios grow and stay stable.