Properties have always been an important Investment Asset due to the often secure long term return. As an Investment Asset, Stealth Capital Holdings Ltd. has chosen only Properties with continuous income such as Rental Properties and Hotels.
In addition for the Investment Properties to have a continues income, such Properties will according to economic theory increase the value with same level as the entire economic in the long term, hence representing not only a monthly/yearly return, but also an increase of the actual Investment Asset.
There are of course several important factors that have to be taken into consideration, when investing in a Property such as Location, Tenants and Structure of Debt.
Location is of great importance in regards to both the long term value, as if it’s placed where the demand after properties are strong and Tenants (or Visitors at Hotels) cannot exchange with another location, the increase are often more substantial than other places – but often also the Property comes with a higher price. This could for example be City Centres of London, Paris and similar attractive Capitals.
Tenants are as well of importance, as the continuous incomes are based on them. Therefore, it’s important to evaluate in particular larger Tenants and their leasehold contracts, as the absence of a large Tenant can have significant influence on the Income.
The Debt structure can also decide whether a Property generates sufficient Income or not, as the debt’s interest rate and repayment structure is the most important and largest part of the costs of owning a Property. The Company co-operates with several banks to optimize this, and together with a strategy to never hold more debt than 70% of the value of the Property, the Company has a stable and safe financial starting point.
With structured analysis, the Company believes itself to be very efficient in identifying Properties with the necessary characteristics to be a good Investment Asset.