INVESTMENT OPPORTUNITIES

SENARIA is an ambitious group of specialised real estate companies providing construction management and technical transactional services to clients through our Project Management Division, as well as investing opportunities in real estate syndication projects to passive investors through our Real Estate Development Division.

We believe in having in-house all core-specialties needed for real estate investment projects to provide a one-stop-shop experience to our investment partners offering them the opportunity to participate as passive investors from the starting point in syndication projects conducted by SENARIA, whether is real estate development projects or properties acquisitions.

REAL ESTATE DEVELOPMENT

Our experienced project teams thoroughly evaluate land plots or semi-developed buildings to find assets that could be developed or finalised in order to be sold with the purpose of returning attractive yields. 

Once the property is identified, we rapidly start the due diligence process to vet it, then we act on acquiring the asset, authorise it and develop the project based on our proven experience in construction project management field. Once the building is finalised and commissioned, we sell the asset returning exceptional profits to our investment partners.

The real estate development services offered are dedicated to SENARIA projects only developed alongside passive investors, so we always focus on our partners goals, and also searching for the best solutions and opportunities for our future projects.

CURRENT OPPORTUNITIES

SENARIA team is excited to present you the opportunity of investing in a variety of real estate syndication projects tailored by our teams.

THE CURRENT OPPORTUNITIES ARE FOLLOWING​

Real estate development in Ilfov county

consisting of an industrial park development with 600 sqm warehouses units, n proximity to the ring road of Bucharest. This deal will drive consistent cash flow and a high degree of predictability for our investors based on a long-term renting option and a great product represented by the storage or production spaces for small and medium enterprises (SMEs).

Real estate project acquisition in Mamaia North

Constanta consisting in 12 houses, located in a boutique residential compound with a total of 15 family units, located 650m distance from the beach, on Mamaia Boulevard. This deal will drive consistent cash flow and a high degree of predictability based on a long-term renting option or if the units will be renting on a short-term regime, then the three summer months earnings will exceed the annual revenue from long term renting.

This creates an exciting opportunity to pursue the development of high-class assets type and take advantageof these inflationary economic trends

If you chose to invest with us and further to distribute your investments in these two types of deals – “build & sell” and “buy & hold” – you will lower the overall risk profile of the portfolio and driving up the returns as the development projects mature. Your funds will be spread across multiple projects and asset types, which will diversify your portfolio while still mitigating your risk.

Why we like these opportunities

Over the past 10 months we have seen a significant amount of labor and materials shortage, a prices materials increase and a building permits volume decline especially in Bucharest, thus making the investment space a challenging place for every player to source great deals in the markets we focus on.

SENARIA teams have been working in this period on many projects, spread on various fields in real estate, with a lot of investors and have identified couple of key niches of growth due to our daily involvement in a multitude of projects where our teams successfully deliver construction project management services.

We are always evaluating our projects structures and returns, constantly working on optimising for investor performance, which includes profitable deals, paying out above-average returns, and mitigating risk. ​

For the above reasons, we believe a real estate syndication project is the best step forward for you, our passive investors.

Minimum investment: € 50,000

Market Highlights

SENARIA’s real estate syndication projects will generally focus on Bucharest – Ilfov area, from Romania. This market has shown a healthy growth over the last decade and due to its constant increase of jobs and population combined with a low unemployment level, makes us very confident in our future investment projects.

ILFOV AREA

Romania’s total stock of modern industrial and logistics space is approaching 7 million square meters in 2023, up from 6.2 million square meters at the end of last year, and there is still significant room for development relative to other countries from Central and Eastern Europe (CEE), having the possibility to exceed a stock of 10 million square meters by the end of this decade, due to the fact that Romania has similar private consumption levels (by volume indices) to those of Poland or Czechia, but the stock of deposits per capita is 2-3 times lower than in these countries. Currently, Bucharest (36%), Timișoara (26%), Brașov (12%) and Slatina (10%) concentrate most of the industrial and logistics leasing transactions in Romania, and in the conditions in which the supply of industrial spaces new is limited, existing spaces are increasingly profitable.
If the vacancy rate of industrial spaces of approximately 5-6% marked a slight increase compared to that recorded at the end of 2022, rents have been on an upward trend since the beginning of the year. Thus, the average calculated by real estate specialists is around 3.75 euros per square meter/month net effective rent for a standard unit of 5,000 square meters
In Bucharest, however, as well as in the main industrial and logistics hubs in Romania, general rents have reached or even exceeded 4.25 – 4.50 euros/sqm/month. Therefore, in the short and medium term, it is expected that the level of rents in the industrial and logistic field will continue its upward evolution, both in the last months of this year and in 2024, and the gratifying fact is that new demand continues to be the main engine of the market, (90% of the total leased area in the second quarter of 2023 and 72% of the demand in the first half of 2023).
The industrial and logistics market is going through its best period in history despite the complicated economic, social, and geopolitical context. Transformations in retail, the development of e-commerce, the concern for the expansion and diversification of locations, but also the risk reduction related to the disruption of distribution chains are the main drivers of demand in Romania.

MAMAIA NORTH, CONSTANTA AREA

Navodari is the second largest city in Constanța county and consists of the localities of Mamaia-Sat and Navodari (the residence). The town of Mamaia-Sat was initially developed as a residential district, which quickly became an important tourist area dominated by accommodation spaces, private guesthouses, as well as campsites with direct access to the beach and clubs.
The beach in this area is by far one of the best natural beaches on the Romanian coast, the resort being suitable both for rest and recreation during the summer holidays, as well as for the natural healing factors due to the maritime climate, rich in saline aerosols and sea water Black.
The number of tourists arriving on the coast in 2022 was over 500,000 and tourism specialists estimate that it is much higher considering that there are many accommodation units that do not report data to the National Institute of Statistics. The year 2021 being for the second year in a row when Constanţa county was at the top of the ranking of the most visited areas in the country, with over 1.2 million tourists

RETURNS PROFILE

SENARIA has taken a very conservative approach to modeling the projects returns, taking into account

future uncertainty in the marketplace.

AVAILABLE FOR PASSIVE INVESTORS ONLY

This opportunity is a real estate project structured to handle the development/aquisition of an individual project, which is only open to passive investors at this time. There will be future opportunities also for joint ventures with landowners or institutional investors on future projects conducted by SENARIA.
Investors in the syndication projects conducted by SENARIA will be accepted on a first-funded basis, and the private equity raising round can be closed at any time.

Real estate development in Ilfov county

SENARIA is pleased to present a logistics park development project (“Senaria Logistics Park”), consisting of 14 warehouse units with office spaces included, each having 600 sqm built surface located in the southern part of Bucharest, with direct access to Bucharest’s Ring Road and from there to A1 highway, the road that connects the capital of Romania, Bucharest with the Constanta harbor. The project is being developed by SENARIA with the purpose of bringing on the market a missing product for small and medium enterprises.

After being completed Senaria Logistics Park focus is renting spaces to SME (Small & Medium Enterprise) clients for light industrial and logistical use. The storage units are ideal for companies that need a space on simple flexible terms.

After the occupancy rate of the logistic park reaches 85% it will be sold towards an institutional investor.

Download the Investment Summary

The projected investor returns are:

  • 32.1% Internal Rate of Return
  • 108% Cash on Cash Return
  • 3.02x Equity Multiple
  • 3 YearHold Termple

Boutique Residential Compound Acquisition in Mamaia North: SEED DEAL

We are pleased to announce that we have identified a great opportunity and already tested it, which makes us confident to propose it as a great syndication project! The location of this project is Mamaia North / Navodari, Constanta, a city with enormous potential due to the presence of the Constanta harbor, the Mihail Kogalniceanu airport, and the beautiful seaside.

We consider this city ideal for short term renting, especially in the summer season, but we also considered that fact that there are no units available for long term renting in the summer season which brings a big opportunity to the owner of such real estate products in such a shortage inventory. All the units located in this area are being leased on a short-term basis and since all the units available on the market are apartments, the best approach for this compound was to lease all the units on a long-term basis due to its unicity - seaside villas compound. SENARIA has bought three single units in this unique project with other passive investors and plans on renting them on a long-term basis due to the shortage for this type of product.

After being involved in projects in Constanta and noticing various opportunities and the real estate market needs, we have decided to buy the twelve remaining houses in order to consolidate and control the entire project due to the various renting opportunities when you own a private boutique residential compound at the seaside.

Download the Investment Summary

The projected investor returns are:

  • 16.3% Internal Rate of Return
  • 42% Cash on Cash Return
  • 1.96x Equity Multiple
  • 5 YearHold Termple

HOW IT WORKS

As a real estate syndication company, SENARIA locates investment projects and presents them to our investor group.
Individual investors have the opportunity to examine the deal and decide if they want to join in.

WE LOCATE

Our project teams identify land plots that could be develop on or properties that are underperforming and enhances the value of the property that is a value play for our investors.

YOU INVEST

Investors become partners in the future real estate project SPV, after we receive the funds from them.

WE GENERATE

Our portfolio of properties generates steady monthly income from renting and the project developments brings us capital gains after being sold.

YOU GET PAID

We payout cash distributions on a monthly basis to our investors from the properties which have been rent or we distribute the capital gains after selling the assets.

STABILITY

Real estate is an attractive asset class that has a long track record of outperforming the major stock indices.

CASHFLOW

In contrast to other asset types, real estate generates consistent, predictable monthly income.

TAX BENEFITS

Depreciation is a great tax write-off that keeps more of the income in your pocket.

APPRECIATION

Purchasing properties below replacement-cost or developing new projects in order to be rented, hold for a period and then sold, positions our portfolio well for future appreciation.

FAQs

What is Real Estate Syndication?

Real estate syndication brings the power of group buying to the world of real estate investing. A group of individual investors can invest in bigger, more valuable properties than each person could afford alone. Syndication is an effective way for a group of investors to pool their financial resources and make smart investments.
Real estate syndication allows the average person to realize high investment returns on investing in real estate. Although it’s been around for many years, real estate syndication has recently seen a surge of interest as the general public has become more familiar with crowdfunding platforms.
Let’s take a closer look at what real estate syndication is and how it typically works for the average investor.


A Closer Look

Real estate syndication is a way for investors to join forces to invest in a large project, typically one too big for one individual to build/purchase alone. This is much like the way individuals invest in a product, business idea, or charity on a crowdfunding platform online. In the past, only the very wealthiest individuals could take part in these real estate syndications. Today, even smaller individual investors can generate passive income by investing in a syndication.

Real estate syndication is essentially a relationship between a sponsor, also known as the general partner, and a group of investors. The sponsor acts as the orchestrator of the deal, putting in the most footwork. This means that the sponsor bears the responsibility of finding the property, raising capital, develop the project and sell it or managing the day-to-day operation. Individual investors in the syndicate, however, do not have as much responsibility—they can simply invest the money in the deal and reap the benefits.


Because the sponsor usually puts in the sweat equity, he is responsible for at least 5% of the required equity capital. The investor’s responsibility is between 80-95% of the total. The more equity the sponsor has in the deal, the better for the investors.

So, how do you actually make money as a passive investor in a real estate syndicate? Let’s walk you through the process with an example. We’ll use Example Logistics Park as the property name developed by our imaginary real estate syndication.

Let’s say a real estate syndication develops Example Logistics Park, a logistics park in Ilfov / Bucharest containing 12 units of small warehouses:

  • Property Developed. Example Logistics Park construction cost (incl. land) goes for €5 million. The bank requires a 40% down payment to qualify for a loan on the remaining €3.0 million. The general partner contributes €0.2 million and turn to investors for the remaining €1.80 million of the required down payment.
  • Profitability. During the next five years, the general partner leases all the units, operates the property, makes the necessary repairs, manages the Example Logistics Park, raises every year the rental prices, and finds ways to make the property more profitable.
  • Collect Rent & Pay Out Profits. During the same five-year period, from the rental income, the syndication returns to its investors a portion of the profits’ Example Logistics Park generates every quarter.
  • Property Sale & Investors’ Pay Out. After those initial five years, Example Logistics Park sells for €7.5 million. The investors now get back their entire initial investment, part of the €1.8 million used for down payment plus the profits resulted from the property sale in direct correlation with their amount invested.

The general partner participates in the upside of the real estate syndication deal. Even though each real estate syndication and sale is different, a general partner always acquires a fee in addition to the equity he earned. The general partner’s fees are clearly outlined ahead of time in the Shares Holders Agreement.

The typical fees paid to the general partner in case of property acquisition or project development are

  • Acquisition/Transaction Fee. This fee is typically 1-3% of the entire transaction value. A general partner looks over quite a few deals before they find the right one. Acquisition or transaction fees help offset inspection, travel, and vetting costs associated with finding a valuable investment property for a real estate syndication.
  • Disposition Fee. A disposition fee is what a general partner earns at the end of the deal. This fee is a one-time fee equal to 1-2% of the sales price for reimbursing the general partner any expenses incurred at the sale time.
  • Asset Management Fee. The general partner also manages the asset, including property management supervision, hiring contractors, managing renovations, up-to-date accounting, and investor communications. The asset management fees equal 1 to 3% of the gross revenue generated by the property.
  • Construction Project Management Fee. The general partner delivers full services of project, cost and construction management for the real estate projects development on the land plots identified or for the semi-completed properties acquired. The general partner’s services are being delivered by dedicated specialists such as project managers, construction managers, cost control managers, planning engineers, legal counselors and certified site inspectors. The construction project management fees equal 3 to 5% of the total value of the investment.

If you’re wondering how real estate syndication works in the real world, let’s look at an example from SENARIA. 

  • We made an unleveraged investment consisting in a real estate properties acquisition in Navodari, Mamaia North, Constanta for 3 family houses, located in a boutique residential compound with 15 family units, located 650m distance from the beach, in proximity of Allezi Infinity. This deal will drive consistent cash flow and a high degree of predictability based on a long-term renting option or if the units will be renting on a short-term regime, then the three summer months earnings will exceed the annual revenue from long term renting.
  • Navodari is the second largest city in Constanța county and consists of the localities of Mamaia-Sat and Navodari (the residence). The town of Mamaia-Sat was initially developed as a residential district, which quickly became an important tourist area dominated by accommodation spaces, private guesthouses, as well as campsites with direct access to the beach and clubs.
  • The beach in this area is by far one of the best natural beaches on the Romanian coast, the resort being suitable both for rest and recreation during the summer holidays, as well as for the natural healing factors due to the maritime climate, rich in saline aerosols and sea water Black.
  • The number of tourists arriving on the coast in 2022 was over 500,000 and tourism specialists estimate that it is much higher considering that there are many accommodation units that do not report data to the National Institute of Statistics. The year 2021 being for the second year in a row when Constanţa county was at the top of the ranking of the most visited areas in the country, with over 1.2 million tourists. 
  • The location is ideal for short term renting, especially in the summer season, but together with our partner, the owner who sold us the units, we took into account that all the units located in the same area are being leased on a short term basis and due to the fact that all the units available on the market are apartments, the best approach for this compound was to lease all the units on a long term basis due to its unicity – seaside villas compound. In November 2022 before all the interior finishes for the 15 units were completed, the compound was 40% leased, meaning that everything that was finalized up to that day, has been leased.  

Mamaia North, Constanta syndication project highlights:

  • 16.3% Internal Rate of Return
  • 42% Cash on Cash Return
  • 1.96x Equity Multiple
  • 5 Year Hold Term

Structured as a Limited Liability Company (LLC/SRL) or a Limited Partnership (LP), the General Partner /Sponsor of a real estate syndicate plays the role of General Manager / Administrator. The investors participate as passive members or limited partners. The Share Holders Agreement is an essential document. They outline the general partner’s and investors’ rights, which can include voting rights, rights to distributions, and the sponsor’s rights to entitled fees in the investment management. The LLC or Limited Partnership structure is similar to the other private funds in Venture Debt and Venture Capital. Such legal entities protect the sponsor and the Limited Partners if the deal goes wrong.

Buying or developing a property yourself is two of the best ways to invest in real estate. But many investors don’t have the initial capital to purchase a sizeable property on their own. Additionally, the average investor doesn’t have or doesn’t want to spend a lot of time hunting for profitable real estate. After the purchase of the property of the land plot, the work doesn’t end. There is designing, authorizing, developing, and selling or managing, maintenance, and other day-to-day business that many people have no interest in when it comes to substantial properties. Investing in a real estate syndication, however, allows investors to participate in the real estate market for less capital while leveraging professionals’ expertise and avoiding the hassles of day-to-day management.
Like with any real estate investment, past performance doesn’t guarantee future performance. Returns through syndications average about 10 to 35% for passive investors. A holding period is typically three to five years but could be between one and three years as well whether the investment type is buy & hold or build & sell. Suppose there is a €50,000 investment with an 8% return from rent but a projected total Investment Return Rate or IRR of 15%. In that case, if the syndication runs for five years, an investor receives €4,000 a year. When the building gets sold at the end of five years, investors receive their initial investment back and a percentage from the sale profit, bringing the total return on the investment to the IRR projection of 15%.
No. A real estate investment trust (REIT) is similar to a mutual fund. A REIT is publicly traded, and it holds a plethora of real estate assets. A real estate syndication, however, is not a publicly traded entity, and it typically contains just one project /property. Syndications historically earn more than REIT’s. REIT prices move in the stock market’s direction, while real estate values do not track the same as the stock market movements. Syndications also offer significant tax breaks over a REIT, depending on the tax situation.

Real estate syndication is the future of real estate investing, and it’s trending more all the time. Here are just a few benefits of investing in real estate syndication:

  • Pooling resources
  • Going From Undervalued to Highly Valued
  • Investing in large projects
  • Making bigger investment for bigger returns
  • Portfolio diversification
  • Professional expertise/advice
  • Ability to take part in larger deals
  • Passive income and cash flow
  • Capital gains
  • Taxes
  • Personal credit protection
  • Minimizing risk
  • Utilizing other’s connections

Let’s take a closer look at each of these benefits:


Pooling Resources
It’s an effective way for a group of investors to pool their financial resources and make smart investments. While €10,000 might not buy much real estate on its own, when you join a group of like-minded investors in a real estate syndication, you have much higher buying power.


Going From Undervalued to Highly Valued
The group can invest in bigger, more valuable properties than each person could afford alone. Many of these projects may be currently undervalued in the marketplace but could be revamped and rebranded to sell/rent for a much higher price than the initial price.

Investing in Commercial and Logistics Projects
Commercial properties like apartment buildings and logistics parks are some of the most profitable projects for real estate syndicates. The average investor wouldn’t be able to invest in these types of projects alone, and probably wouldn’t even know about them without the general partner’s expertise.

Making Bigger Investments for Bigger Returns
It’s about having more financial resources, but you also have more intellectual resources to invest wisely. Your real estate syndicate helps you make bigger, bolder investments based on actual marketplace data and proven results in the past.

Portfolio Diversification
Financial advisors say not to put all the eggs into one basket. An investment portfolio needs diversification. This means that a portfolio should contain varying investments to minimize risk. If the stock market tanks, for example, real estate could manage just fine. Real estate syndications are an excellent addition to a portfolio, allowing you to diversify into a new asset class.

Professional Expertise/Advice
Real estate syndication general partners have done this before; they understand how to hunt for the right deals, know what is required to squeeze every profit euro out of a real estate deal and what it will take to raise the property’s value. Syndicate investors can benefit from dealing with general partners who have years of experience in this market instead of attempting to navigate through it alone.

Ability to Take Part in Larger Deals
There is more money to be made when anything gets done on a larger scale. Single-family homes and duplex sales create profit, sure. Still, it’s hard to compete with the profits from trading office buildings, apartment complexes, logistics parks, and other enormous real estate deals. Yet these types of investments have been historically off the table for many individual investors for various reasons, including lack of funds, insufficient expertise, or inadequate time for management responsibilities. By pooling money with other like-minded investors, however, one has access to larger deals than they could undertake as a single investor.

Passive Income and Cash Flow
Many real estate syndications have monthly or quarterly cash flow payments, in addition to the larger payout at the deal’s culmination. There is nothing as satisfying as seeing mailbox money every month that requires little to no time and effort. These payments are useful additional cash for vacations, renovations, emergencies, college, parent’s eldercare, and investing in other real estate deals.

Ability to Gain Capital through Real Estate Development
Developers buy land, finance the project, build with the help of builders, or develop projects in joint venture, create, imagine, control, and orchestrate the process of development from the beginning to end. Now, with the help of real estate syndication, passive investors finance the development process and becomes a real estate developer through the general partner’s expertise who purchase a tract of land, determine the marketing of the property, develops the building program and design, obtains the necessary public approvals and building permit, builds the constructions, rents them out, manages, and ultimately sells them reaping the desired profits.

Taxes
The Romania’s tax code makes allowances for investors in real estate syndications to enjoy amortization benefits. Although these benefits largely depend on your individual tax situation, real estate typically has favorable taxation compared to other investments.

Personal Credit Protection
A person doesn’t have to accumulate piling debt onto their credit report. The real estate syndication obtains its own loan from the bank, independent from an investor’s personal credit. Applying for bank loans as a single entity to purchase real estate directly leads to a hit or several on personal credit. The syndication’s debt, however, won’t affect your credit score any more than buying a mutual fund.

Minimizing Risk
When buying real estate directly, sometimes a person winds up spending more than they intended. Unexpected repairs, lawsuits, and other unforeseen expenses turn a projected profit windfall in a downward projection quickly. Putting money into a real estate syndication, you can only lose what you can afford to or choose to invest and not more.

Utilizing Other’s Connections
Some of the best real estate deals won’t ever hit the open market. As with any sector related to real estate echoes, connections are critical. Without those vital connections, people often miss out on the most profitable deals. The general partner is in a syndication network in the business regularly, allowing them the ability to more easily find deals that would otherwise fall below the average investor’s radar.

Finding the Right Real Estate Syndication
You wouldn’t just hand your money over without adequately looking into a business, especially with real estate. Vetting a few real estate syndications is crucial before investing. The general partner’s reputation, success rate, expertise, years of experience, reasonable financial assumptions in the shareholders agreement, and financing terms are factors that matter when working with a real estate syndication. The split distribution of profits aligns the general partner’s interests with investors, making it another critical factor.

Like with any investment, the passive investors should do their due diligence and understand their investments. Investors are lured in every day by too-good-to-be-true investment opportunities. An attractive feature of a real estate syndication investment is its favorable tax treatment. Real estate general partners can use amortization to offset income and reduce current taxes on cash distributions. Ensure you understand these and all the factors when dealing with a real estate syndication.

Getting Started with Real Estate Syndication
As you can see, passive investors are well-positioned to realize large returns on the right kind of project investment. We invite you to learn more about this and other previous projects SENARIA has successfully conducted along with our investors and decide for yourself whether this route to passive income is right for you.

Ready to try real estate syndication? Contact us today and start your investment journey with the SENARIA team.

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