Yiannis Foradaris: CySEC authorisation benefits our operations and boosts investor confidence

Nextius Capital provides bridge and development secured loans to give investors fixed generating income. Yiannis Foradaris, the Fund’s Managing Director & Co-Founder, explains how authorisation from the Cyprus Securities and Exchange Commission (CySEC) benefits its operations and boosts investor confidence in its robust risk management and internal control processes.

What are Nextius Capital’s primary investment objectives and strategies?

Nextius Capital aims to provide bridge and development secured loans. The Fund’s primary investment objective is to provide investors with fixed generating income while seeking to limit downside risk by taking sector, demand and area needs into account when choosing Portfolio Investments.

The Fund focuses on financing the acquisition and/or development and/or reconstruction of various types of real estate projects in the United Kingdom that have the potential of delivering superior, risk-adjusted returns and are determined by the management as reliable for repaying a debt obligation.

How does Nextius Capital differentiate itself in the competitive real estate finance market?

The Group has a successful 14-year track record in residential real estate projects with consistent returns and over £350 million worth of combined investments completed in both development and financing. The Nextius Group builds on the experience gained through the successful completion of over 80 development projects, delivered and sold in the past 14 years with a total value in excess of £150 million. Nextius Capital benefits from having an extensive in-house team of property professionals, civil engineers, quantity surveyors, property managers and an established network of external professional associates. Due to the specialisation and experience in dealing with complex deals, Nextius Capital offers borrowers a flexible and specialised product to suit any case.

How do you determine which real estate projects are suitable for investment?

Property financing relies on the underwriting of facilities that align with the Fund’s policies and respective risk appetites. The underwriting process for a loan facility involves several critical stages: Deal Origination, Due Diligence, Approval and Drawdown. Throughout these stages, the underwriters continuously evaluate the lending criteria against both internal and external factors, making adjustments as necessary to reflect changing conditions. This thorough assessment ensures that each loan meets the Fund’s standards and risk thresholds, thus maintaining the integrity and stability of the investment portfolio. Additionally, this dynamic approach allows the Fund to remain adaptable and responsive to market fluctuations and regulatory developments, ensuring robust and prudent investment practices.

What measures do you take to ensure the sustainability and risk management of your investments?

Nextius Capital employs a diversified portfolio strategy, allocating investments across a range of development projects to minimise risks. The management team performs extensive due diligence and ongoing market research to make well-informed decisions. A key element of our risk management strategy is staying current with economic trends and regulatory changes, enabling proactive risk mitigation and ensuring the long-term sustainability of our investment portfolio. Additionally, Nextius Capital continually evaluates market conditions and adapts its strategies accordingly to navigate potential challenges and capitalise on emerging opportunities, further reinforcing our commitment to prudent and strategic investment practices.

How do you ensure transparency and communication with your investors?

Maintaining transparency and communication with investors requires regular, thorough reporting, including financial statements and performance updates. The Fund provides clear and timely monthly updates through a fact sheet which states the monthly performance as well as updates on market conditions and major investments and loan redemptions. Additionally, the Fund adheres to regulatory compliance and industry best practices to ensure accurate and comprehensive communication, further bolstering transparency. We also actively seek feedback from investors and promote open dialogue, which helps us understand their concerns and refine our communication strategies.

What are the key benefits for investors who choose to invest with Nextius Capital?

Investing with Nextius Capital offers several key benefits. The Fund’s diverse portfolio strategy reduces risk by investing in a variety of projects. An experienced management team conducts thorough due diligence and continuous market research for well-informed decisions, thereby mitigating risks whilst, at the same time, providing above-average returns when compared to the Debt Financing Industry. Transparency and adherence to regulatory compliance ensure clear, honest communication and strengthen investor trust. By staying informed on economic trends and regulatory changes, Nextius Capital enhances its proactive risk management and portfolio sustainability. In summary, investing with Nextius Capital offers investors a comprehensive package of benefits, including diversification, rigorous due diligence, transparency, proactive risk management and an investor-centric approach, leading to attractive returns and preserving capital over the long term.

How does being authorised by the Cyprus Securities & Exchange Commission (CySEC) impact your operations and investor confidence?

CySEC authorisation benefits our operations and boosts investor confidence by guaranteeing adherence to strict regulatory standards. It highlights our dedication to transparency, integrity and financial stability, assuring investors of our credibility. CySEC’s oversight mandates rigorous reporting, ensuring that we uphold high operational standards. Adhering to these regulations protects investor interests, reduces risks and strengthens trust. Moreover, CySEC authorisation signifies that we meet high operational and financial benchmarks, including robust risk management and internal control processes, thereby improving our efficiency and reliability.

What are the current challenges in the UK property market?

The UK property market is currently grappling with several challenges. There is a notable shortage of housing, worsened by slow planning approvals and insufficient new construction. High property prices make it difficult for many, especially first-time buyers, to afford homes. Rising interest rates have increased mortgage expenses, affecting affordability and leading to high rental yields. Economic uncertainties, including inflation and Brexit-related impacts, add to the market’s complexity. Additionally, new regulations and policies aimed at improving housing standards and sustainability further complicate matters for developers and buyers.

(Photo by TASPHO)

(This article first appeared in the 2024 edition of The Cyprus Journal of Wealth Management, commissioned by Eurobank Cyprus and published by IMH. Click here to view the article. Click here to view the entire magazine online.)