Blue Ocean Capital

Club Deals in The Real Estate Development Market

in USA, Europe and UK

More info
15-30%
IRR
$500k
starting from
1–4 years
Investment term
up to $10 mln
Deal value

Current offer

Examples
123
Housing stock includes 50+ individual dwelling units for rent in Philadelphia, PA

Housing stock includes 50+ individual dwelling units for rent in Philadelphia, PA

Philadelphia, PA, USA
$8 mln
Deal Size
1.5-10 years
Investment term
24.42%
Yield per year

Example
Open for investing
File your application before:
December 31, 2021
More info

We are the experts in both development and investment

What makes our team unique in the Russian market
Назад
Вперед
Pavel Yanshevskiy
Partner / Manager
Development

Pavel Yanshevskiy

Thanks to Pavel, we know how to evaluate the quality of the projects and teams, in which we invest

Founder of 3S Group development company
Founder of S.A. Ricci consulting agency
20+ years
in development and consulting in the real estate market
300 sq. m²
residential development in Moscow, including residential complex «Talisman»
Denis Astakhov
Partner
Development / investments

Denis Astakhov

Thanks to Denis, we have the best connections with foreign developers and a constant flow of top-quality projects

Held management positions at Wainbridge, Swedbank, Ernst&Young
15+ years
in the international real estate market and Private Equity
$ 2.5+ billion
maximum amount of assets under management
Kirill Schmidt
Partner
Investments

Kirill Schmidt

Thanks to Kirill, we build long-term win-win relationships with investors and partners

Held management positions at Troika-Dialog, Nomos-bank, Renaissance Capital, Uralsib
20+ years
in investment and capital management
$ 1.2+ billion
maximum amount of assets under management
Maria Domnina
Investment Director
Development/investments

Maria Domnina

Thanks to Maria, our investors have up-to-date information and access to new projects

Worked in the consulting agency S.A. Ricci
10+ years
in the development real estate market
Has experience in successfully launching advertising and sales of residential complexes under the "Talisman" line of the 3S Group development company

We provide you with access to the best development projects

Our specialisation is residential and office real estate with an investment cycle of 1 to 4 years
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We get offers that are not available on the open market

many years of experience working with developers in the USA, Europe and the UK

We select only reliable projects

after a thorough multi-step analysis

We provide an optimal legal infrastructure

from the point of view of international legislation and taxation

“Provide investors from Russia and the CIS with access to highly profitable property development projects in the mature world markets”

Mission of Blue Ocean Capital

FAQ

Why is property development a good investment?

Investment in development brings a lot more profit than investment in ready-built property. If purchasing a share in the ready-made rental business earns $4-8% per annum, the profitability of the development projects is at $15-30% per annum on average.

Why do Western developers need investments?

To get a bank loan and start construction, a developer shall prove to the bank that it possesses funds equivalent to 25-40% of the total project cost. This is an absolute requirement of banks in order to provide such funding. Even a large and reliable developer is not always able to provide the required amount. To increase its own capital to the requested level, the developer is ready to attract "third-party" investments - this is when a possibility to invest in the developer project at an early stage emerges.

How do investment clubs work?

Unlike collective investment tools, which can have hundreds or even thousands of private investors, club deals are limited to 3-10 people, each of whom becomes a shareholder of a specially founded project company, which owns all the property rights and the future real estate. The flexibility of such shell companies enables both addressing such tasks as protection of investors' interests and minimizing tax burden during profit distribution.

How projects are evaluated? How are investment decisions made?

We have direct access to developers from different countries and consequently a constant flow of projects. The partners of the company with over 60 years of total experience in personal development and investment in different countries evaluate the projects themselves. We analyze the projects the same way as the venture funds analyze startups in the Silicone Valley - we analyze the team of the developer, its experience in similar projects, the history of our successful cooperation with this developer, and even the developer's reasons to attract third-party investors. It the results are satisfactory we proceed to the in-depth inspection - we analyze the concept of the project, its business plan, financial model, construction cost estimation, and sales targets. At the final stage, we verify or create the legal structure of the deal, warranties, and taxes. You are the one who decides on investment, but each project available to our investors has already passed our verification and approval.

What are project risks and how do we minimize them?

We mainly invest in the highly profitable sector, which is associated with some standard risks. 1) Risk of failure to obtain the required permits, licenses, and approvals. We select either the projects with already approved documentation as its approval is a prerequisite for participation in the deal; or projects implemented by developers with vast experience in approval of similar projects. 2) Risk of increase in the cost of construction or reduction in the sales revenue. We select projects with adequate margins to cover any realistic variances. We prefer to structure the deal in such a way that the profit is first paid to investors and then to the developer. 3) Risk of project delays. Reduction of profitability due to increased term of investment is a common practice for the development sector; which is why we carefully analyze all the schedules and charts and bring them to conservative scenarios. 4) Risk of improper management - to minimize this risk we scrutiny the team of the developer rather than the project itself. We prefer to work with the developers whom we already have a history of successful cooperation with.