OCTAVA

Objectives
Octava  S.A. aims at achieving a higher medium-term rate of growth of its net assets than that achieved by funds or other companies of comparable risk profiles. We pursue our goal based on our investment portfolio of up to ten medium-sized investments projects at a time.

Strategy
Our corporate strategy provides for active involvement in real estate projects or other investments, particularly those involving property development, which will ensure the achievement of above-average rates of return.

In the case of equity investment, we invest in projects whose expected required annual rate of return is no less than 15%.*

To a limited extent, we may provide debt financing, thus achieving lower rates of return that would reflect the project risk and the level of obtained security.

Octava S.A. will dispose of those projects where the expected value growth is lower than the required rate of return adopted by the company. Proceeds from such disposals will be reinvested into new development projects or distributed to shareholders (through share buyback or dividend payment).

Medium-sized and large projects involving development of commercial, residential and office space are our investment priorities. However, other types of projects may also be considered.

Our investments will include both pure greenfield projects as well redevelopment and repositioning projects.
We may establish joint ventures with property owners or, in the case of large-scale projects, with financial partners. In either case, Octava intends to act as an active investor.

Our strategy is based on selection of real estate unique in terms of location and town-planning potential, as well as the establishment of operational and financial relationships with partner responsible for execution of particular projects (Property Developers). We expect Property Developers to become financially involved in the projects.

Projects which do not involve Property Developer, may be implemented under agreements with the project engineer or manager (responsible for the preparation of technical documentation and managing the construction process) and the real estate agent (responsible for commercialisation and/or sale of the project). In such cases, we will ensure a professional management team in the project’s special purpose vehicle to oversee the project execution on an on-going basis.

Octava S.A. may consider expanding its activities abroad, in particular to Eastern and Central European countries, if attractive investment opportunities arise in the region. Nevertheless, the Polish real estate market remains our key area of interest.

* - Octava S.A. does not warrant that such required rates of return will be achieved by any particular project, the entire investment portfolio or its part. Rates of return are calculated with the use of projects’ financial models serving as the basis for investment decisions; such models contain financial assumptions prepared on the basis of the best of knowledge and experience of our employees, the Managing Firm and the project partners.