A new limited-release Luxembourg-based capital guarantee bond has launched in a bid to capitalise on opportunities in the post-pandemic tourism and hospitality industries in Europe.
The five year GESCO T1 Ltd bond has been designed as a fixed-income impact investment to provide vital funds into the beleaguered European hotels and resorts industry, while at the same time offering investors a chance to access a share in the potentially lucrative post-pandemic cut-price hotels and resort properties marketplace.
Designed for both qualified and institutional investors, GESCO T1 Ltd. has issued a Luxembourg-based note, GPP Euro Resort Impact Stability (ISIN CH0549200217), listed on the Vienna Stock Exchange, with an initial volume of €250m and is now available.
We are providing a fixed income product with the goal being to rehabilitate an industry following one of the greatest financial catastrophes in history," Christopher Griffin, chief investment officer at GESCO T1 Ltd.
The company said in a statement that it takes an "active presence" in each investment in order to leverage its global team of experts to increase profitability, promote economic development and "positively impact the local community" with every acquisition.
"We are providing a fixed income product with the goal being to rehabilitate an industry following one of the greatest financial catastrophes in history," said Christopher Griffin, chief investment officer at GESCO T1 Ltd. "Of course we want to make money and we want the investors to feel safe, but we are also focused on economic development, creating jobs and protecting and supporting the business eco-system that surrounds hotels and resorts.
"In that sense we can be considered a fixed income impact investment."
The hotel and resort investments are being selected by GESCO T1 from readily available property lists in Europe, many available at heavily discounted rates due to the impact of the pandemic. The majority of the best opportunities are in beach resorts and coastlines in Spain, Italy, and Greece, GESCO T1 Ltd said.
Griffin said that in simplest terms GESCO T1 Ltd has developed a "post-pandemic European beachfront hotel and resort acquisition strategy" whose basic premise is to buy properties at a discount, develop a geographically diversified portfolio and then exit in 2026.
"The products are designed for qualified investors, high-net-worths, family offices, asset managers and the like who want a fixed income diversification component in their overall investment portfolio," added Griffin. "This is a 'hedge' style investment intended to be over collateralised and as safe as possible.
"We wanted to create something simple, easy to understand, easy to buy, low risk, transparent and domiciled in a respectable location."
Click here to find out more about the GESCO T1 Ltd bond offering.