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Property investment and services group Arteon has signed up the first asset management customer.
Arteon, formerly TurfTrax, has been appointed by an Isle of Man incorporated property company which is raising to cash to buy up to €30m of pre-let residential property in Germany. A proposed second phase would raise cash to acquire €100m of property. The property would have an initial yield of 9%-11%. Arteon will receive 0.6% of gross assets under management as an annual fee plus 0.6% of any assets when they are acquired.
Arteon will use its Orchos software platform to manage the property. Orchos enables qualified investors and funds to hold and report investment property within a transparent framework. Each property is owned by an ‘asset transparent vehicle’ and this will enable individual investors to take a stake in any property.
Orchos has been licensed from Arteon’s major shareholder Real Estate Innovations Holdings. To maintain worldwide exclusivity for the use of Orchos, Arteon has to have €300m of assets under management by March 2011. Arteon says that the initial contract will provide a showcase for Orchos.
Arteon had £84,000 in cash at the end of September 2009. There were also shareholder loans of £150,000. Shareholders say that they are willing to put more cash into the company.
At 120p a share, Arteon is valued at £1.05m.
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