Vocabulary Guide

An SPV, or Special Purpose Vehicle, is a separate legal company created to own and manage a single property or investment.

Each property listed on the PRYPCO Blocks platform is held within its own SPV. This structure ensures that:

By purchasing shares in a property’s SPV, investors indirectly own a fractional share of the property itself.

🧑‍💼👩‍💼 Investor(s) → 🏢 SPV (Special Purpose Vehicle) → 🏠 Property → 💰 Returns to Investor(s)

It represents the estimated annual return on an investment before subtracting any expenses, including management fees and maintenance costs.

Gross Yield (%) = (Gross Annual Rent ÷ Current Market Value) x 100

Example:
​If a property is valued at AED 2,000,000 and rented for AED 200,000 per year,

Gross Yield = (200,000 ÷ 2,000,000) × 100 = 10.0%

This means the property’s gross yield is 10%, showing it generates a 10% annual return before any costs are deducted.

It represents the actual annual return on an investment after deducting all expenses.

It provides a clearer picture of the property’s actual income performance, reflecting what investors actually earn.

Net Yield (%) = [(Gross Annual Rent – Annual Expenses) ÷ Current Market Value] × 100

Example:
​If a property is valued at AED 2,000,000, rented for AED 200,000 per year, and has annual expenses of AED 60,000,

Net Yield = [(200,000 – 60,000) ÷ 2,000,000] × 100 = 7.0%

This means the property’s net yield is 7%, showing the real annual return after costs are deducted.

It refers to the projected yearly increase in the market value of a property. It shows how much the value of your investment is expected to grow each year, based on price changes in the real estate market.

Capital Appreciation (%) = [(Selling Price – Total Investment Cost) ÷ Total Investment Cost] × 100

Example:
​If a property is purchased for AED 2,000,000 with buying costs of AED 200,000, the total investment is AED 2,200,000.

If the property is later sold for AED 3,000,000 (after selling costs):

Capital Appreciation = [(3,000,000 – 2,200,000) ÷ 2,200,000] × 100 = 36.36%

This means the property’s value increased by 36.36% over the investment period.

To find the annual capital rate appreciation, you can divide this total appreciation by the number of years the property was held.

It is the payout an investor receives from an asset after all costs and expenses have been deducted.

In PRYPCO Blocks, dividends represent each investor’s share of the net rental income generated by a property.

Dividend = (Total Rental Income – Expenses) ÷ Number of Investors

Example:
​If a property is co-owned by 10 investors and generates AED 200,000 in annual rent, with AED 20,000 in expenses:

Dividend = (200,000 – 20,000) ÷ 10 = AED 18,000 per investor

Each investor would receive a dividend of AED 18,000 for the year, representing their portion of the property’s net income.

It measures the total return you earn from an investment compared to the original amount you invested.

It includes both:

ROI = [(Selling Price – Purchase Price) + Total Earned Income] ÷ Purchase Price × 100

Example:
​If a property is purchased for AED 2,200,000 (including purchase costs) and sold after 5 years for AED 2,800,000, while generating AED 600,000 in dividends over that period:

ROI = [(2,800,000 – 2,200,000) + 600,000] ÷ 2,200,000 × 100 = 54.54%

This means your total return over 5 years is 54.54%, combining both net income and capital appreciation.

Purchase and Transaction Costs are the additional expenses incurred when executing a property deal, in addition to the asset’s purchase price.

They include all fees related to buying, selling, and transferring ownership of an investment property.

Total Investment Cost = Property price + Purchase/Transaction Costs

Example:
​When purchasing an investment property in Dubai, the transaction costs include, but are not limited to: