Mechanism of real estate sale
USING OF JOINT INVESTMENT INSTITUTIONS AND SPECIAL PURPOSE BONDS DURING REAL ESTATE SALE
Investment group “ATLANTIS CAPITAL” is implementing a model “Special purpose bonds plus Joint Investment Institutions” (SPB plus JII) when selling real estate under construction. The group accompanies, advises and serves the transaction from beginning to end.
The model completely meets the norms of the Law of Ukraine “On investment activity”, according to which the investing and financing of residential housing construction can be carried out “exclusively through the funds of financing of construction, funds of real estate operations, Joint Investment Institutions, as well as by issuing special purpose bonds of enterprises” (Article 4 of the Law).
Proposed model assumes a convergence of the capabilities of the named two ways of real estate sale:
- issue of SPB – prompt sale of securities, deffered payment of VAT for Constructor (tax liabilities arise after the securities redemption to the final buyer and the transfer of the title of the built property), VAT is paid from selling price of SPB to JII;
- JII – current tax relief for income tax for all JII in Ukraine (JII is not a payer of income tax) and absence of duty for JII to pay advance payments of future income tax when paying dividends.
Brief essence of the model described in the presentation attached. We can also send full version of the presentation on your request. We will be glad to answer your questions by phone or at personal meeting.