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Investment

Safety first

Bargella Group staff draw on up to 30 years of real estate experience, providing profound knowledge for skilful and analytical property assessment. In mutual interest, we only invest in real estate projects where mezzanine loan interest and redemption are practically guaranteed.

Possibly worthwhile offers are subjected to a thorough due diligence procedure. Immobilienprojekte, aus denen Zinsen und Rückzahlungen für die Mezzanine-Kredite so gut wie sicher sind. Lohnend erscheinende Anfragen werden einer gründlichen Due Diligence unterzogen:

Risk analysis

We are not alone. Only projects or sales with confirmed bank approval are financed. This provides you, as investor, and us, as fund, an added security. Our tangible security lies in the mortgage, and comes second to the bank.
We are able to avoid, or at least limit, losses

even when a project would go bankrupt. Credit loss is only one of the risks to prevent. In the following graphic, you will see the most predominant risks rated according to their probability and financial impact.

Here is how we forestall risks:

Raised interest

Foreseeable interest yield & capital security remains intact, even when other investments earn more interest. Despite increased interest, the issue of real estate investors funding gap remains constant. And the fund can distribute a higher yield than the proposed target yield.

Credit deficit

Fine-tuned due diligence. Bank evaluates creditworthiness.

Deflation

Property price decline would narrow RE investors’ margin, but not primarily ours. The high risk premium compensates for circumstances.

Inflation

Inflation protection is not available, yet inflation can be balanced out by returns beyond the target yield. Even with a current rise in inflation, the inflation risk regarding Swiss francs is no immediate or significant risk

Construction decline

The demand for mezzanine funding is so high that a decline would not impact the number of interested parties.

Loss of key participants

The Bargella Group is a large, thoroughly organised team with a well-oiled representation structure.

Global economic decline

This risk may never be overlooked. From a political vantage point, the current effects are difficult to evaluate, which includes our undertaking as well. Compared with stocks and bonds markets, the property investment markets in Switzerland and Germany are capable of standing firm in the face of global economic decline.

Additional regulating

Both the European Union and Switzerland embrace constitutionality also known as rule of law. In the wake of recuperating over the past few years, there is a recognisable trend to anti-regulatory politics. We do not expect regulations that will interfere with our business.