Investment in Commercial Industries and or Projects

Our Sectors

Investment in Commercial Industries and or Projects

Most popular and growing sections are the automotive industry, chemical industry, petrochemical refining, biological industry, pharmaceutics, electrical & electronic engineering industry.

Europe offers competitive advantages in the industrial sector

Modern manufacturing industry – The industrial sector employs 24.6% of the active population. Portugal ranks 8th position among the world’s largest mould makers, particularly when it comes to moulds for plastics. Big global brands choose European market when it comes to automotive pieces.

One of the European Union countries – Portugal is an expert in the aerospace industry. Footwear industry is one of the most advanced in the world in Europe as well. Shipbuilding and ship repair industry has a strong exporting component. There are various small and large size industries in Europe today which are ready to be taken over. There are amazing and promising projects in the initial stage of their boom. We are supremely talented, well promising, guaranteeing on your investment returns with profit. We support all the projects with proper survey, documentation, detailed investment reports, project details and any other requirements specified by the government of project located country to secure and ensure the investment of our client. For any new start-up we support our clients to analysis the production and sales market with report from reliable experts.

Why to consider Investments in Commercial industries or Projects?

Stable and predictable cash flow.
High income returns/distributable cash flow.
Lower operational risks with minimum start-up investment than other property types
Relatively stable supply and demand characteristics.
Large investment universe–14% weighting within the NPI Index and 17% weighting of the ODCE Index.
Portfolio diversification.

In case of Investments in projects there are some principles that will be taken into account, especially

The concept of incremental cash flows To evaluate a project, we will consider the cash flows driven by the project; for instance, if the project will use available staff (that wouldn´t be dismissed in the absence of the project) this cost shouldn´t be included in the project; by contrast, if the project sales produce a reduction in the sales of another product this side effect should be accounted for.
The role of sunk costs A sunk cost is an item generated by the project, independently of the decision of moving forward with it or not; a classical example are the costs associated with several studies conducted in the project analysis (market research, product conception, etc.) that will always be incurred by the firm whatever final decision regarding the project; in these cases, the associated (sunk) costs shouldn´t be included in the project evaluation.
The finite life the project will run for a given period. The more common criteria to establish this time horizon is the economic life of the major component of the investment, but other criteria may be used according to the project’s characteristics (for instance, a concession period).
Asset disposals assuming that the project has a finite life, the sale of assets and realization of working capital balances will have to occur at the end of the project, being its final cash flows. The value of the sale of assets should, though, be estimated. Usually, and adopting a conservative view, assets disposals will be carried out in the year after the last operating cash flow occurs (or operational activity is completed.
Nominal vs. real prices Project data can be prepared assuming a zero inflation (real prices) or considering a given scenario for the evolution of prices (and their impact in the project outputs and inputs); the latter is more common, while the former is more used in projects developed in countries with high and especially unpredictable inflation. The real prices approach creates an additional difficulty in the valuation process regarding the calculation of the discount rate: this needs to be established taking into account the theoretical zero inflation scenarios.