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In an economic climate characterized by rising interest rates and market volatility, investors increasingly seek stable, high-yield alternatives to equities and other instruments influenced by market movement. AccretivPLUS TI Note (ACCPLUS), a new investment opportunity offered by OrbVest South Africa, has emerged as a compelling option, delivering 9% annual returns in US dollars – a rate significantly higher than many conventional fixed-income investments.
A standout yield in the current market
With U.S. Treasury yields at approximately 4.3% for 10-year bonds and high-yield corporate bonds offering 7% to 8%, the AccretivPLUS TI Note’s 9% return positions it as an attractive alternative for investors. Listed on the MERJ Exchange, with ISIN No.: SC4188IEFC6027, this structured private debt product allows investors to earn fixed, predictable returns while minimizing exposure to stock market fluctuations.
Justin Clarke, CEO of OrbVest South Africa, highlighted the growing investor appetite for structured alternatives: “Notes have become increasingly popular among investors looking for a hedge against equity market volatility and fill the liquidity void that has resulted in the pullback from traditional lenders. AccretivPLUS offers security and a strong return backed by a resilient, proven healthcare real estate portfolio.”
Backing from a $200 million healthcare real estate portfolio
AccretivPLUS TI Note is secured by a diversified portfolio of 24 medical office buildings valued at over $200 million across nine U.S. states, particularly in high-growth cities and counties. The portfolio boasts a 93% occupancy rate, housing over 100 healthcare providers with an average lease term exceeding five years, ensuring stable, long-term rental income.
Key Portfolio Highlights:
- Stable portfolio cash flow: Current quarterly distributions exceed $1 million.
- Resilient sector: Healthcare real estate remains a defensive asset class, benefiting from growing demand.
- Diversified tenant base: Long-term leases from healthcare providers reduce risk exposure.
Investment structure and security
AccretivPLUS offers investors a straightforward and secure way to participate in the U.S. healthcare real estate market through structured debt. Key investment terms include:
- Fixed Interest Rate: 9% per annum (simple interest), accruing monthly and capitalized annually.
- Minimum Investment Period: One-year lock-in, with withdrawals permitted with 90 days’ notice.
- Collateral: Secured by a healthcare real estate portfolio with over $80 million in invested equity.
Strategic market positioning and growth opportunities
A key advantage of AccretivPLUS is its ability to leverage market conditions to fund expansion while avoiding the high costs of refinancing. Its underlying properties have senior debt locked in at historically low interest rates. Raising additional debt from traditional banks would require restructuring at current rates of 7% or higher, significantly increasing borrowing costs. Instead, AccretivPLUS enables capital improvements, tenant expansions, and acquisitions while maintaining efficient debt structures. Additionally, the commercial real estate market presents opportunities for discounted acquisitions.
Why is this investment product attractive to investors?
- Superior Returns: 9% USD-denominated yield exceeds most traditional fixed-income investments.
- Risk-Adjusted Security: Backed by a robust and stable healthcare real estate portfolio.
- Alternative to Market Volatility: Provides stable, predictable income in an uncertain environment.
- Long-Term Demand: Healthcare real estate continues to show strong occupancy and resilience.
With fixed-income investors facing historically high interest rates and ongoing economic uncertainty, AccretivPLUS TI Note stands out as a stable, high-yield opportunity in an asset class with long-term growth potential.
For more details on how to invest, visit https://plduw8ym.fwfmsites.com
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