The beginning of 2020 has been particularly remarkable. Emotions on both personal and professional levels are being severely tested and it is easy for many to get carried away. Therefore, it is crucial to keep a cool head and not be influenced by anything but the actual facts.
SIPA Group SA is closely following the global developments and, with experienced analysts at hand, we are well equipped to draw the necessary conclusions not only to protect investors’ capital, but also to position them to optimizing long-term returns when the current situation is behind us. In times like these, it is often the “boring” assets which perform best. This is primarily due to “flight to haven”, which loosely translated means that investors switch to more “safe” assets such as metals, bonds, dividend paying stocks and real estate. These are sustainable areas that in the short and long term have a great deal of security.
7% annual return – in an airport! How is that possible?
It goes without saying that airports around the world are experiencing lower traffic and thus lower occupancy of car parking spaces. Why then does SIPA Group SA recommend investing capital in this segment? This is simply because of our firm belief that the current crisis will wane this year, and by entering into two-year lease agreements, investors’ returns will not be affected by the current situation. We (fortunately) are not the only ones who have noticed, and therefore we anticipate a greater “inflow” of capital from not only private but professional investors too.
Although it may be difficult to relate to these days, the fact remains that global travel activity is growing every year. Our economy depends heavily on this area, and one has only to observe how the global markets are affected when travel activity is hindered. This fact highlights the importance of the sector, and governments are doing their utmost to re-establish and strengthen market conditions to normal. Whether it will take weeks or months is still uncertain, but SIPA Group SA is convinced that when the year ends, we will look back at today, and realise it was a time when opportunities presented themselves. Therefore, buying an asset with a stable and high interest rate, in a sector that will recover, will be a wise and strategically prudent decision.
50 is the new 30 – what do we mean by that?
The general interest rate level was already low before the Covid-19, and is on its way further down. In today’s economy, the level of interest rates serve as a reference point when investors measure their returns, and therefore it must also be expected that investments which, quite recently, did not attract attention are now suddenly popular. If an asset can be traded today at an interest rate of 7%, and we estimate that the markets henceforward will consider a return of 5% as attractive, the traded asset can thus undergo a price increase of towards 40% and still meet the market requirements.
Click on the link below and signup to view the conceptual prospectus on how you can invest your capital in a real estate sector, which is expected to generate a stable return in the coming years, and which has the potential for added value that is far above what many other alternatives can offer.