Property Servicing

A special purpose company is not allowed to carry out the activities related to the operation and maintenance of the acquired property. These activities must be assigned to a real estate servicing company. This is a registered firm that has the resources and capabilities to maintain and service the acquired real estate, manage and keep its accounting records and correspondence, and perform other necessary activities.

The servicing company that Bulland Investments has contracted to do that job is Bulland Services Ltd. The latter has extensive experience in organizing collective investment schemes as well as in real estate (incl. agricultural land) trading. The activities that the property servicing contract covers are related to the real estate owned by Bulland Investments and any real estate that the company is planning to invest in.

The property servicing contract covers

  • the preparation of proposals for acquiring and selling real estate (agricultural land, forests and other properties) and/or ownership rights proposals for real estate in accordance with the investment objectives of Bulland Investments;
  • carrying out the preparatory work for the buying and selling, and ownership rights transactions;
  • carrying out the preparatory work for real estate renting contracts, overseeing the fulfilment of these contracts, collecting any receivables related to them, terminating the contracts and assigning the responsibilities in the case of default (including the activities related to the mandatory collection of receivables arising from them);
  • managing and maintaining the real estate owned by Bulland Investments that has not been rented out.

In addition, the real estate servicing company

  • awards the initial and subsequent appraisals of real estate on behalf and at the expense of Bulland Investments;
  • constantly monitors and analyzes the market for agrucultural and other types of land, and provides Bulland Investments with the necessary information for accomplishing its investment objectives;
  • prepares the necessary documents and materials related to the issue of securities or to the loan contract with a bank;
  • is responsible for managing and keeping the accounting records and correspondence of Bulland Investments, and for disclosing any relevant information as provided for by the normative acts;
  • manages the advertising and marketing activities of the fund;
  • provides the necessary organizational, technical and material support for the proper functioning of the fund's Board of Directors;
  • manages the activities related to the administration of securities.

The cost that Bulland Investments has to pay the real estate servicing company for the services provided by it is equal to 1,4% of the net assets of the fund.