In managing the properties, we budget the costs of upcoming maintenance and renovation. For each property we acquire we set up a cash reserve which is initially established at the beginning of an investment offer and this is further build up on a monthly basis from the gross rental income.
In case of emergencies such as maintenance cost overruns, extended vacancies, and tenant insolvency, we can initially use the cash reserves to cover these costs. If the cash reserves are not sufficient to cover the cost, BRXS Properties will use its own cash reserves (if this is available) to cover the cost and/or our mother company BRXS can provide a short term loan.
Noteholders in each note series have a security right, if we - for whatever reason - cannot cover the cost anymore and cannot find a solution within six months, we will have to sell the property. With the net proceeds of the sell the loan can then be (partially) repaid to note holders.
BRXS is applying for a full AFM license in 2023 as it extends its activities.