SMI will operate on most projects as either the entrepreneur or as the finance bank. For each project to be a “secluded island,” funds will be distributed among several projects in different assets and countries. This allows the exposure of projects to identical risks to be neutralized. The distribution of investment funds will only be provided for projects that receive approval from the SMI Investment Committee. This committee consists of experts in real estate, finance, law and insurance. The loans will be given to projects in areas considered less affected by a recession such as student housing, sheltered housing, renewable energy and long-term rentals. Each loan will be secured by built-in security pads in the financing mix and terms as well as legal collateral on projects such as liens and guarantees.
We are the finance bank
Analysis of financing percentages (LTV) in each transaction based on Regional Statistics, appraisal for all assets that receive financing, collateral of various types such as asset incumbrances and guarantees. The funds and collateral are supervised and managed by an acting trustee attorney.
Special collateral
All of our funds have a ‘mutual guarantee fund’ aimed at allowing continued payments even in cases of default on loans given to entrepreneurs. In addition, all loans are backed by collateral held by the trustee with the ability to act in the event of a default. Equity insurance covers each fund’s activity and protects it from misconduct and malfeasance by the company and its directors.
Trustee – Legal Collaterals
Money never goes to the borrower (SMI) without collateral and guarantees in favor of the investor.
The company has no direct contact with the money and no ability to act on its own. In the event of a breach of the terms of the loan by the borrower in that case, implementation of the collateral in a concentrated and professional manner in the shortest possible time. Trustees hold on behalf of investors collateral guarantees, releasing funds based on legal and engineering milestones, and maintaining a dedicated trust account for any investment in international banks.
Local infrastructure
Local legal team, due diligence for each transaction and loan, collateral registration in accordance with local law, ability to exercise collateral quickly in the field, local CPA, Adjusting the investment structure optimally to the investor against the benefits of the investment structure, reporting to the local tax authorities in order to identify the investor’s need to make tax reporting in the target countries in accordance with a joint tax treaty with Israel, Project managers who oversee execution in accordance with the business plan and approve release of funds in accordance with engineering milestones.
Investment Committee
All of our funds have a ‘mutual guarantee fund’ aimed at allowing continued payments even in cases of default on loans given to entrepreneurs. In addition, all loans are backed by collateral held by the trustee with the ability to act in the event of a default. Equity insurance covers each fund’s activity and protects it from misconduct and malfeasance by the company and its directors.
Regulation
Investments without a prospectus are not supervised by the ISA and are subject to the Securities and Exchange Act and the Joint Investment Law. Accordingly, each investment is limited to up to 35 offerees for every 12-month period and to eligible investors only and will contain no more than 50 investors in total. The fund’s trust is defined by trust law. Each investor must pass a procedure ‘know your client’ aka KYC in accordance with the Money Laundering and Terrorist Financing Law as well as the law requirements in the investment countries. Depending on the laws in the country and the investment country, the investment margins will be subject to withholding tax.
