GESCO T1 Ltd. has announced the release of its first series of securitized notes focusing on hotel and resort acquisitions following the coronavirus pandemic in Europe.
The private placement note series, GPP Euro Resort Impact Stability (ISIN CH0549200217), released in cooperation with Praetorian Assets Sarl., MTCM Investments AG, and ISP Securities AG, has an initial volume of €250 million, and is available to both qualified and institutional investors. With a focus on the acquisition of distressed or otherwise closed resort properties in Spain, Italy, Croatia, and Greece, the notes are five-year, fixed coupon Secured Bearer Debenture Bonds offering a 20-50% return on investment upon exit.
Designed as a low risk, medium return, fixed income, capital guaranteed, collateralized, real estate investment, GESCO T1 Ltd.’s impact approach will create jobs as well as increase revenue and taxable income where the coronavirus pandemic has caused financial devastation since early 2020.
GESCO T1 Ltd.’s methodology is designed to promote investments that create higher-salaried, year-round employment; attract more visitors willing to spend more money due to pent-up demand; bring high-level attention to economic areas surrounding properties; reduce the reliance on all-inclusive tour package providers that subjugate profitability; focus on more sustainable business practices; and increase property revenues that will yield higher taxable income.
According to Mr. Øyvind Berger, Director of GESCO T1 Ltd., “It is no secret that 2020 was the worst year in recorded history for travel and tourism; recovery will take years. We intend to include targeted activities and programs that will work to improve the economic wellbeing and quality of life in the community by building local wealth, diversifying the economy, creating and retaining jobs, and building the local tax base. We are looking at each property as a member of an economic ecosystem. If we are successful, the entire community becomes successful. And noteholders see higher returns on their investment.”
He went on to say, “Our strategy is not focused on taking financial advantage of the pandemic but about rebuilding the market after a catastrophe, though it is no coincidence this is a unique – and hopefully once in a lifetime – financial opportunity.”
GESCO T1 Ltd.’s Chief Investment Officer added, “We started in 2019 and everything came to an abrupt halt in early 2020. During lockdowns and travel restrictions, we worked to restructure our entire thought process, reevaluate which markets made the most sense, and now we have developed something that is truly unique. What we have created is a predictable way to participate in a tumultuous market sector full of opportunity without direct risk or exposure, as well as help lenders who are inundated with non-performing assets, quickly turning liabilities into investments.”
GESCO T1 Ltd. is a UK-domiciled SPV focused on hotel and resort acquisition with representatives across Europe and in North America. For more information or to obtain a term sheet, please visit www.gesco.capital