Underlying Product Structuring

The Lithuanian Securitization Special Purpose Vehicle (SPV), acting as the issuer, will form a True Sale Principle Agreement with the SPV that holds the underlying real estate asset. As per this agreement, the (future) receivables of the SPV holding real estate assets will be acquired by the Securitization SPV. The proceeds generated in the Real Estate Special Purpose Vehicle will be allocated to the issuer, who will then distribute these proceeds to the noteholders.

The Securitization Special Purpose Vehicle (SPV) would subsequently issue a bond, with the real estate asset as collateral, which is being held by the Real Estate SPV. This is achieved through the acquisition of the (future) receivables by the Securitization SPV from the Real Estate SPV.

In the unlikely event of bankruptcy by PC Holding UAB, the SPV remains unaffected, ensuring that the investors would either continue to receive their payments or the assets held by the Real Estate SPV are liquidated to refund the investors.

At Prop.com, we have placed stringent measures to uphold this framework and maintain the integrity of the investment process. Some of these safeguards include planned regular audits conducted by prominent third-party auditing entities. To achieve this, we plan to work with reputable institutions such as Ernst & Young (EY) Lithuania to be the independent financial auditor of the Securitization SPV and its compartments and Audifina Lithuania who will be acting as the trustee to represent the bondholders by monitoring the issuer, supervising the fulfilment of the obligations to the investors and, if necessary, communicating with the investors. To guarantee an independent annual valuation of the underlying assets held within the Real Estate SPV, independent third-party valuation firms will be engaged. These independent third-party audits provide an extra layer of security by delving into the financial health and operations of the SPV, ensuring compliance with the guidelines and the effectiveness of risk mitigation measures.

Continuing with our dedication to investor protection, we are in the process of securing a DIFC Property-based crowdfunding license in the UAE under the jurisdiction of the DFSA. Upon the completion of this regulatory setup, the oversight and monitoring of Prop.com activities will transition to the relevant regulatory body. This alignment will further bolster the security and transparency of our product offerings, fostering enhanced trust among our investors.