We endeavour to explain to the visitors of this site the correlation between the different companies.

1. A certain number of smaller investors or a big investor creates the SPV - Special Purpose Vehicle. This company exists only during the project. The price for creating such a company is about EUR 1200.-.

2. The investors pay the amount necessary to the acquisition of the land plot into their company. In the books of the SPV this payment appears as a loan granted by the shareholders to the company. The advantage of such a loan is to give the investor the possibility to exit the initial investment as soon as the cash of the SPV allows it. Besides the shareholders are entitled to charge an interest for this loan (see point 3, second paragraph).

3. This SPV can either enter in a project of residential development or can buy land for rezoning. In both cases the sale is done on a retail basis.If we have a project of residential development the shareholders can finance also the first stages of the construction, i.e. can grant a kind of construction credit to the SPV. In that case they can charge an interest on the loan to the SPV. The interest should be similar to the interest paid to Romanian banks, i.e. right now LIBOR + 3.25% + different fees. It sums up to about 8-10% in RON.

4. Leader Investment & Consulting SA Switzerland is the structure which permits the investor a relationship with a Swiss established company. The investors can sign a Management Mandate with Leader Investment & Consulting SA Switzerland who certifies the receipt of the amounts and confirms that the amounts will be invested in real estate and managed through its Romanian subsidiary.

5. Leader Investment & Consulting SA Switzerland markets the activities of its subsidiary Leader Investment & Consulting srl Romania. It does the contact with the international investor.

6. Leader Investment & Consulting srl Romania is the Project Manager for the SPV. It acts in the field of Residential Development and Promotion for the SPV. It manages also the projects in land rezoning. It has also an activity of brokerage for special investments like buying of Historical Monuments, ready made buildings, hotels, small factories, agricultural land plots, land for development purposes, flats etc.Leader Investment & Consulting srl can intermediate investments in agricultural developments which can qualify for EU Structured Funds. For more sophisticated projects, we have the possibility to help our investors to receive grants from public funds.

7. A Project Management Mandate will be signed between Leader Investment & Consulting srl Romania and the SPV. Leader Investment & Consulting srl Romania charges success oriented fees to the SPV. These fees are going to be part of the Management Mandate and agreed upon together with the Investors.