ICON Suurpelto Bond
The ICON Suurpelto Bond is continuation to ICON Real Estate Funds’ successul bond offering on Invesdor.com. With the funding we raised, we acquired a finance and property management company and strengthened our team with two new key persons. WIth this lineup we are continuing to develop our existing 130 million euro project portfolio as well as new properties even more profitably. The function of our first bond was to bring ICON’s human resources up to the level required by our existing projects and to grow parent company ICON Real Estate Funds’ operations to match the rapid growth rate of recent years.
The purpose of our new bond, the ICON Suurpelto Bond, is to raise funding directly to a real estate development project in the Suurpelto area in Espoo, Finland. The issuing company is ICON Suurpelto Bond Oy.
Real estate is generally regarded as lower risk investments that retain their value well. Normally bonds issued through Invesdor are unsecured; however, our bond is secured with a possibility of converting the bonds into ICON Suurpelto Bond Oy’s shares. ICON Suurpelto Bond Oy will own up to 50 % of a condominium that will own a property currently valued at 6.5 million euros in Suurpelto.
ICON Suurpelto Bond is the retail investor’s possibility to invest in a secured bond of a real estate development project with low investment minimums. The minimum investment for our bond is 1,000 euros, whereas the minimum investments in ICON-managed funds are generally in the tens of thousands. Indeed, one of the main purposes of our bond is to enable all investors to access the world of real estate development because our funds are out of reach for many due to the high investment minimums.
The Suurpelto area
Suurpelto (Storåkern in Swedish) is a new and developing residential area in Espoo, in the Helsinki metropolitan region in Finland. The area is 325 hectares in size, and there are plans to build apartments for a total of 10,000–15,000 residents in the area. Additionally, the Suurpelto area is to be the location for up to 5,000 jobs. The first area is currently more than 50 % completed, and ICON’s real estate project is the largest poject of the remaining portion.
The project in question will be the central block of the whole of Suurpelto. Built upon the block’s first floor of business space will be seven residential stories in the east and, following a zoning change, a 20-story highrise in the west, which will be a landmark of the entire Suurpelto.
The concept of the Suurpelto area is designed to strive for ecologically sustainable solutions that increase the energy efficiency of construction of the area as well as the entire society.
After the opening of the Western Metro Extension (Länsimetro), ICON’s Suurpelto plot will be within three kilometres of the Niittykumpu metro station. The opening of the metro extension will likely grow demand for apartments in the neighboring areas, and we expect it to also grow the value of Suurpelto as a location. There is a well-planned traffic infrastructure from the area to the metro line.
|Company name||ICON Suurpelto Bond Oy|
|Investment range||200.000 – 1.250.000 €|
|Interest rate||8 – 8 %|
|Price per bond||100,00 €|
|Bond term||3.5 years|
|End date||21.4.2016 23:59|
|Field of business||Other|