Welcome to Private Treaty Services.
Private Treaty Services is a specialist property investment consultancy.
Our Services are targeted towards high net-worth individuals and private/listed funds who require direct exposure to commercial or residential real estate anywhere within the region covered by the investment team (currently South Africa/Central and Eastern Europe).
We offer direct exposure to niche property investments as part of a balanced investment plan for investors who are seeking to avoid investment in listed real estate stocks, REIT’s or other syndicated investment vehicles in which they have no control.
High net-worth investors and funds interested in direct property investment, who partner with Private Treaty Services will enjoy the benefits of direct investment and access to the market together with the following key advantages;
As a majority shareholder the investor has absolute control of their invested funds and the ability to actively manage their portfolio/s with the advice and commitment from Private Treaty Services’s highly skilled and professional team.
Depending on the investment strategy and the maturity of the portfolio, the investors can take as much or as little control over the day to day management of their portfolio.
Real estate investment is not without its risks and investors with Private Treaty Services set the return profile they are targeting and have control over their portfolios exposure to risk.
As majority shareholder and chairman of the board, the investor has full visibility of the portfolios activities via regular management reports from both the asset management (Private Treaty Services) and property management (Private Treaty Services) arms of the business.
Geography & Sector
While there will be certain locations and sectors where Private Treaty Services will have relatively more advantage to add to the portfolio, Investors have no limitation on investment advice and management within a European and African context.
Private Treaty Services provides a team of high calibre professionals who have extensive experience in both fund management and real estate consultancy.
As the majority shareholder the investor has absolute control, subject to market conditions, of when they exit from individual investments or from the entire portfolio. There will be no penalty fees or restrictions on the durations of the inventor’s commitment to the investment vehicle.
Debt and Gearing
The level of gearing, the ratio between the assets' value and the level of bank or other debt is an important driver of investor’s returns and holds a level of risk.
The Investor will take a majority shareholding in the NewCo with a carried interest (minority) making up Private Treaty Services’s shareholding. The shareholder loan is repaid before any dividends are paid out to the shareholders with an agreed level of interest rolled up over the term of the investment.
The portfolio strategy can be reviewed as market conditions change or the portfolio, investors’ needs change. The portfolio strategy document will provide the acquisition team with clear focus in their approach to the market and presentation of investment opportunities to the board.
Private Treaty Services's management team forms an important part of the investment strategy, providing local knowledge, sourcing investment opportunities, as well as asset and management services.
Management services are offered at a reduced rate to Private Treaty Services's clients, however where possible Private Treaty Services Management will be entitled to earn acquisitions and disposal fees through the life of the portfolio. In addition a ‘bonus fee mechanism’ will be built into the management agreement to allow the Private Treaty Services Management team to benefit from the success of Private Treaty Services's Investment portfolio activities.
The asset management principals are heavily based on the key pillars of accountability’and alignment of interests between our clients and Private Treaty Services.
The typical investor is a high net-worth individual/private or listed fund who wishes to invest in real estate as part of a broader well balanced investment portfolio, which will be made up of a broad range of direct and indirect investments.