Relex announces elite residential village development project with 30 percent projected ROI
An elite residential complex of 61 homes in a location just 10 kilometers from Vladivostok’s international airport and 25 kilometers from the city center is on the docket for Relex Development’s upcoming platform, according to Chief Investment Adviser John Bonar.
The complex will require $4.5 million in funding, with a projected return of $1.375 million after taxes, making it an enticing offer for the Relex Development platform. The offering in Eastern Russia is part of Relex’s plans to expand into Vladivostok.
To sweeten the deal, RLX holders who invest in this first project to hit the upcoming Relex Development platform project will receive an additional 15 percent discount on future Vladivostok-based projects.*
Houses in the complex will be leased and rented, not sold outright. The revenue from these leases will go back to the first stage investors.
The $4.5 million collected for the project will be used in three ways: 1) 60% equity shareholding, 2) All legal and professional fees, and 3) Vostok Projects administrative costs over the two years of running the project.
Proxy developer input in this first set of projects won’t be sought because the schematics for the development have already been created. Future projects, however, will receive input from the proxy developer community.
Development will be done under the auspices of OOO Vostok Projects, a Russian entity created by John Bonar. As such, the Russian company will not be subject to sanctions from the US or EU. Additionally, as a standalone company, Relex Development has no direct ties to this project in Russia, either.
Poised to become a resident of the Vladivostok Free Port, OOO Vostok Projects will benefit from lower taxes from Russian and regional governments, resulting in higher returns for investors, indicative of the careful and thorough planning undertaken by the team.
Bonar introduced Marina Genevskaya at the Relexation summit in Vietnam, the Chief Operating Officer of OOO Vostok and soon to be the CEO of Yes-to-Business Vostok. In 2012, she was the General Director of a company that built the iconic cable-stay bridges that eased travel around the city and linked to Russky Island for the APEC Summit meeting.
Faced with adverse ecological reports on its original site for a high-end development village, Relex’s Russian developer Vostok Projects has selected an ecologically clean alternative site.
The new site is within Vladivostok city boundaries, and it commands ocean views, which will become a feature of homes built on the graded hillside site. Underground plumbing supplies fresh water to the site, and it has its own electricity substation.
The 74,000 square meter site already has three 4-story residential apartment blocks on the edge of the site, which yield around US$15,000 equivalent a month in income. Those apartment complexes were each built about 30 years prior.
The forested site is already cleared for housing development. Close by are several residential health treatment centers and an active community with a school.
Bus services, a nearby commuter train station, and postal services all operate in the immediate area.
Vostok Projects has begun negotiations with the attorney for the owner and is optimistic of swift progress in verifying all pertinent information prior to signing a commitment in principle to purchase.
The available land is sufficient for 130 substantial independent homes with their own land. If townhouses are part of the development, then considerably more homes will be created.
The timeline for development is as follows:
By end of September 2018: Legal agreements signed with village partners, and residential status in Free Port area in process
By end of November 2018: Ground broken on development, and all legal requirements fulfilled
By end of November 2020: Completion of project and celebratory launch
*The minimum amount of investment capital to qualify will be announced at a later date.
The above announcement is the fourth of thirty consecutive days of news brought to you by Relex Development.
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