FAQ

How does it work?

Frequently asked questions

Why is Tessin needed?

In Sweden, there are a large number of exciting real estate projects that cannot be realised due to lack of funding while many investors are looking for attractive investment opportunities. This, in combination with a widespread housing shortage, renders traditional investment models insufficient.

Example:

A property developer is planning a project with a total cost of construction of 100 million SEK. The bank grants a loan of 60 million SEK. The remaining 40 million must, therefore, be funded by the property developer through equity or junior (subordinated) loans, which is challenging for many property developers.

At Tessin’s platform, the developer gets an opportunity to find investors who are willing to cover the financial gap that exists between the bank's loan and the total cost of construction, in exchange for a certain rate.

What do you invest in?

Tessin offers the opportunity to invest in real estate, which means that only real estate related investment opportunities are marketed on the platform. Today, Tessin is only giving its platform to project owners who intend to market non-negotiable debt securities (direct loans)or preference shares in limited liability companies.

Does it cost anything to become a member?

No, the service is entirely free. In addition, you will receive an e-book about real estate investments, which is also free of charge.

Am I obligated to invest if I register for an account?

No, membership gives you an opportunity to invest and you receive an e-book on real estate investment at no charge.

Who is responsible for the investment, marketing, and offer?

It is the sole project owner and their board as a whole who are responsible for the investment, marketing, and the offer. Tessin provides a technical tool and a bulletin board to the project owner and has no responsibility or transparency in the investment, marketing, or offer.

Investors who have questions regarding a specific investment are welcome to use the questionnaire on the platform where questions about the investment, the company, and the project proposal are answered by the project owner. Investors also have the opportunity to contact Tessin's customer service, which then passes the questions to the project owner.

What investment projects would Tessin recommend?

Tessin offers no recommendations, advice or guarantees regarding any investments or projects. Tessin only provides a technical tool and a bulletin board to the project owner and has no responsibility or unique insight into the investment, promotion or offer.

Who should invest in the projects that are marketed on Tessin.com?

The projects and investments marketed on Tessin's platform are usually associated with high risk. Normally, it is connected to top financing with or without subordinated collateral or projects driven by smaller project owners with limited financial resources. Virtually all investments marketed on the platform are associated with risks that banks or credit institutions do not accept. This is also the reason why the calculated return is often unusually high.

In light of the aforementioned, the projects and investments marketed on the platform are only suitable for experienced real estate investors with good opportunities to understand and evaluate the individual project or investment. Anyone who is not considered an experienced real estate investor should always disclose relevant work expertise (e.g., financial adviser, investment adviser, lawyer, accountant or similar professionals).

Why am I not permitted to invest less than 50 000 SEK?

It is the project owner alone who decides what the minimum investment should be in the individual project. However, in order to be allowed to use Tessin's technical tools and bulletin board, Tessin requires that the number of investors should never exceed 200 (due to regulatory requirements) and that the minimum investment is high enough to prevent attracting investors who may not have sufficient experience in investing in general and investing in real estate in particular.

How do you transfer your debentures?

As for debentures, they can never be transferred because they are always subject to an explicit transfer ban.

What investment horizon should I have for my investment?

Your investment horizon should be aligned with the time horizon that the property developer has. The expected investment horizon is usually shown in the investment material.

How does a loan work?

The properties of the loans differ between different investments. It is therefore important that the investor carefully study the investment material and the debt certificate, including general terms, to understand how the loan works and what capacity they have in the company.

However, loans can generally be described as follows:
A loan has a borrower (project owner), possibly one or more guarantors and/or mortgage planners and a maximum of 200 lenders. In addition to these parties, a loan agent is charged with the task of monitoring the interests of the lenders and representing them to the borrower. The total amount of the lenders amounts to the loan amount and all lenders have a proportionate right to any mortgage or other collateral linked to the loan.

In order to facilitate decisions, communication and to ensure that all lenders' interests are met as much as possible, all borrowers will transfer a large part of their influence over the loan to a loan agent. This means that it is the agent that exclusively represents all lenders to the borrower in all essential respects, such as no repayment, realisation of any mortgage, etc. Also, note that the lender's obligation to act against the borrower requires certain majority decisions by the lenders and that lenders guarantee the lender's costs and fees. The exact terms and conditions are stated in the bond and its general terms and conditions.

How does assurance for a loan work?

General information about collateral

When the capital return is in the form of loans, the borrower may provide different collateral for the loan, which is not possible when issuing preference shares. The loans that are marketed are often subordinated loans, i.e. the lenders have collateral that comes after the bank loan in the prioritisation scheme.

The collateral for the loans often consists in the pledging of property or the lending of the loan. Mortgaging property means that the borrower hands over or mortgages property to the lender, if the borrower can not repay the loan, the lender may then sell the property. The following are the most common forms of collateral that occur on loans marketed through Tessin.

Real estate mortgage

Real estate mortgage means that the property owner applies for a mortgage in the property and receives a mortgage bond as proof of the mortgage, the mortgage is then handed over to the lender as collateral. Each mortgage letter has a so-called "inner position", i.e. which part of the property's value as the mortgage bond refers. If the loan is not repaid, the mortgage can be realised, which means that the property is measured by the Swedish Enforcement Authority (Kronofogdemyndigheten), which sells it at an effective auction.

Second-hand mortgage

To receive a second-hand mortgage in existing mortgage bonds means that the mortgage has already been pledged to another lender. Second-hand collateral can provide better security than taking out new mortgages with poorer positions in case the pledged mortgage is not fully pledged, for example, if the first lender has a pledge of 10million SEK with an intraday position of 0-10m, but the debt has been reduced to 5 million SEK, there is a space of 5 million SEK that can be pledged to a new lender.

Mortgages of reverse to housing association

Project owners often build a property and then sell the completed building to a housing association. The purchase is often funded with bank loans and member contributions in the association, which is paid when the building is completed. The housing association cannot pay in advance but instead issues a reverse (debenture) - a promise that the project owner will be paid when the bank loan and membership fees are obtained. If the project owner does not repay the loan, the lender may sell the revenue or collect the amount that the housing association will pay to the project owner when the building is completed.

Share pledge

Share pledge means that the shares in a company are pledged as collateral for a loan. For example, if a parent company has a loan and there are assets of value in the subsidiary, the shares in the subsidiary can be pledged. If the borrower does not pay the loan, the lender may take over the shares in the subsidiary and thus receive security for the loan. However, in case of insolvency, stockpiles may have a limited financial value because lenders with a mortgage in the property, i.e. the bank, are prioritised.

The bail

The main forms of the bail are the simple bail and the deposit guarantee. In the case of simple bail, the lender may only turn to the borrower for the borrower after the lender has attempted to be paid by way of clearance. Proprietary, a guarantee "as for own debt" means that the guarantor has the same position as the borrower regarding the responsibility to repay the loan, ie the lender can turn to the borrower and the guarantor who has money.

Corporate Mortgage

Corporate Mortgage is a type of security in a company's property, i.e. assets other than real estate, money and shares. A certain amount of the assets of the business is then written down at the Swedish Companies Registration Office and the borrower receives proof of this in the form of a corporate letter of subscription that is pledged to the lender. The mortgaged property is not determined, but instead the value of the borrower's general property mass is counted as it appears from time to time.

What risks are associated with an investment?

The projects and investments marketed on the Tessin platform are normally associated with high risk. Usually, it is about top funding with, or without subordinated collateral, of projects run by smaller project owners with limited financial resources. Virtually all investments marketed on the platform are associated with risks that banks or credit institutions do not accept. This is also the reason why the calculated return is often unusually high. Anyone who is not considered an experienced real estate investor should always account for relevant expertise such as financial advisers, investment advisors, attorneys, accountants or the like before carrying out an investment.

The risk level in different investment projects varies. The investor should be aware that investment is always associated with risks and that all or part of the investment can be lost.

Read more about general risks. The more project-specific risks are evident from the investment material that the project owner distributes to the investors who reserved shares.

What kind of checks and controls are made on the companies that publish their projects on Tessin?

Before Tessin gives access of its platform to a project owner, an overall, though not exhaustive, control of the project owner and their representatives is made. The check consists of multiple checks against different records for the purpose of detecting matching cases at the Swedish Enforcement Authority (Kronofogdemyndigheten), the Swedish Tax Agency (Skatteverket), and selected courts. Tessin does not allow access of its platform to project owners with frequent and/or serious complaints by the aforementioned authorities. Minor complaints are clearly stated in the investment material.

Should I contact an advisor before I invest?

Anyone who is not considered an experienced real estate investor should always disclose relevant expertise and experience, such as working as a financial adviser, investment adviser, lawyer, accountant, or anything similar before an investment is made.

Do I pay any fees for investing through the platform?

Investors do not pay brokerage fees or management fees. On the other hand, the project owner and/or the company in which the investment is place does pays fees for the use of Tessin's platform, as well as other costs relating to the issue, offers, and acquisition, etc. Additional management fees to be paid to the parent company or other related companies may be charged, especially in the management of existing properties.

Do I have influence over the investment and the company that I invest in?

When issuing debt securities, the investor has no influence over the company in which the investment takes place. However, the borrower is contractually bound to take or not to take certain measures in accordance with the debenture and its terms and conditions. When issuing debentures, the investor entrusts a large part of the influence over the investment to a loan agent, meaning that it is the agent that exclusively represents all lenders to the borrower in all essential respects, such as no repayment, realisation of any collateral etc. Note that the lender obligation to act towards the borrower requires certain majority decisions from the lenders and that lenders guarantee the agents costs and fees. The exact terms and conditions are stated in the debenture and its general terms and conditions.

How do I stay updated on my investment?

The property developer usually provides investors with ongoing (quarterly) updates on how the project or investment is developing. The information is usually relatively short and transparent, and no financial reports or key figures are normally communicated.

What kind of questions are answered by Tessin's customer service?

Tessin's customer service answers to general questions about Tessin and is helpful in case you need technical assistance or wonder how it works. Tessin's customer service is also helpful in forwarding your questions about a specific investment or project to the project owner.

However, customer service does not answer questions (a) attributable to a specific investment or project - all such issues are forwarded to the project owner concerned, (b) concerned tax (c) of legal nature (d) on which investment or project is recommended.

Does Tessin invest in the projects?

No, Tessin never invests in any projects.

What is Tessin Premium?

Tessin Premium is a network of investors that have invested at least 50 000 EUR in the projects marketed on the platform in the last year. As a member of Tessin Premium, you have access to promoted projects 12-24 hours before other investors and will be given priority when allocating the shares.

To whom am I transferring my investment payments?

The capital is usually transferred to a client agent account at Zimpler AB, which manages payments and payments on behalf of the project owner. Zimpler AB operates payment services according to the Swedish law (2010: 751) on payment services and is licensed by the Swedish Financial Supervisory Authority. In some cases, however, the capital is transferred directly to the project owner's bank account without Zimpler AB's involvement. Tessin does not under any circumstances receive any deposits or payments and never handles any capital for any party.

Vad händer om projektägaren inte kan återbetala lånet i tid?

Om ett bolag inte har möjlighet att återbetala ett lån enligt utsatt tidsplan så utgör det i regel en uppsägningsgrund enligt lånevillkoren Låneagenten har endast mandat att agera förutsatt att långivare som representerar mer än 50 % av det totala utestående beloppet röstar för en uppsägning. Sker ingen uppsägning så löper lånet på med en dröjsmålsränta på ytterligare 5 % utöver avtalad ränta fram till återbetalningsdagen. Information om processen vid en försening samt om avtalad dröjsmålsränta finns angivet i skuldebrevets lånevillkor.

Långivarnas samtliga rättigheter utövas exklusivt och uteslutande att av Intertrust (Sweden) AB som anlitats av Låntagaren för att agera låneagent samt för att hålla säkerheterna för långivarnas räkning.

Legal aspects

Frequently asked questions

Who runs Tessin.com?

Tessin's platform is a digital bulletin board that is run by Tessin Nordic AB (556965-9187) and is owned by Stronghold Invest, NFT Ventures (Bonnier News), and the founders of the company.

Is there any connection between Tessin and the property developer?

Tessin has no direct or indirect connection, influence, or responsibility for the project owner or investment offer. Tessin does not represent either the property developer or the investor, does not assess the project owner and/or the investment offer, and does not provide any recommendations or statements to any party regarding the investment offer.

What does Tessin do and not do?

Tessin provides a platform consisting of a technical tool as well as a digital bulletin board that real estate developers can utilise in order to market their business and projects as well as to find potential investors. It does not make any commitment to find investors.

Tessin does not provide investment advice and does not take any active actions to bring together project owners and investors. All communications regarding a possible investment are made between the investor and the project owner, with or without the technical tools offered by Tessin's platform.

Is Tessin registered at the Swedish Financial Supervisory Authority?

Yes, Tessin is registered as a financial institution with the Swedish financial supervisory authority.

Is Tessin an organiser or distributor of the promotions on the platform?

No, Tessin only provides a platform that consists of a technical tool and a digital bulletin board.