Guarantee option performs the reality of the underlying asset. In most cases, choosing the option as a financial instrument for investing in the new building, you can go and inspect the apartment already exist.
This was during the Internet conference on the portal LІGA.net told general manager of asset management company "Liko Holding Yuri Beletsky.
According to him, the key here is the reality of the underlying asset. "It is important, then, on what value you get the option. In the construction market value is a flat, square meters. And in most cases, at least in our company, you can go to this reality, touch or walk through it," - noted Yuri Beletsky.
For his part, counsel Vasil Kisil & Partners Natalia Dotsenko-Belous clarified that the use of option certificates in housing settled Securities Commission decision N572 of 16.06.2009 (hereinafter - the decision N572). It indicates that the option to use the certificates in order to finance construction of housing is a prerequisite that the following initial data:
- The issuer of option certificates can act as a builder and a person who under the Acceptance of transfer given to the construction site;
- No restrictions on the maximum amount of emission certificates optional;
- Accommodation and treatment option certificates is carried out on the stock exchanges;
- The underlying asset, under which options are issued certificates, is either the property rights per square meter, or property rights to the property as a whole.
- The term placement option certificates of up to one year;
- There are no limits on treatment option certificates;
- Optional certificate has two components: (a) the option premium certificate, aligned with the anticipated profits from the sale of the property (the sale of end-investor), (b) the value of the underlying asset, aligned with the cost of construction of the unit of real estate;
- Create an asset management company share of venture investment fund or the use of the available wave functions for the subsequent exclusion of option certificates with minimal end-investor tax losses.
The advantages of option certificates for the purpose of financing the construction of the lawyer carried the following:
- The legislation provided the grounds for the use of option certificates in order to raise funds through ISI to the construction project (Article 4 of the Law of Ukraine "On investment activity", article 34 of the Law of Ukraine "On Collective Investment Institutions", paragraph 7 of Decision SCSSM N572);
- No limits on emissions optional sertfiikatov;
- No restrictions on the amount of the premium and the value of underlying assets, including those linked to the project cost of the facility;
- Ability to control the movement of option certificates, since their appeal is admissible only in stock trading;
- A relatively small financial and time costs to run the tool.