Dear Ladies and Gentlemen,
It is a pleasure for me to be able to tell you that we completing our 11th year successfully in total, despite difficulties in some areas due to geopolitical events and legal disputes. We as the Globtec Group are proud to start the 12th year with our loyal investors.
In 2016 our investments were stabilized and developed according to our yield projections. Due to the current contracts, the renewable energy sector in Turkey has been affected only marginally by the geopolitical events in the region. The balance of electricity production and power plant operation continue to be positive. Our hotel investments, on the other hand, have suffered considerable losses in the region. Specifically, Turkey washit the last year with several crises, culminating in July of last year's coup attempt. A key reason for us to be more active especially now in this country and to support it as much as possible. Turkey has played an important role for Globtec Investment LLC from the outset.
We kept the M & A and industrial investment sectors stable and did not make any new acquisitions.
Although the balance sheets of our subsidiaries in Germany are subject to a current legal dispute, we continue to invest in social housing in Germany. This is one of our key objectives, to build 1800 Apartments for low-incomefamilies, which will be entirely provided by renewable energy until 2020. As I said last year, everybody who works should be entitled to obtain affordable & inexpensive housing. As Globtec Group, we will do our utmost to make this happen.
Our representative offices in Russia, China and the UAE currently have an enormous inflow of new investors who want to diversify their investments and invest with us in secure long-term projects. Especially for these clients we have established a new company that invests worldwide in high-quality real estate and manages it at the same time. Investors will therefore be fully hedged by Real Estate Investment as with all Globtec Investments products. In addition to a yield guarantee, we also offer a guaranteed buy-back of the properties, similar to the exit strategies in our M & A investments. Together with the urban social housing projects, our investments in the hotel sector and the new area of high-end real estate, our real estate sector now covers a broad spectrum.
While trends and economic developments followed some rules and mechanisms years ago, we are currently living in a phase where the sequence of events is becoming increasingly rapid and it is becoming more and more determined by unforeseeable political developments.Water shapes its course according to the nature of the ground over which it flows. Right now, it is important to adapt to the daily changing economic conditions and act similar to the nature of the water, but still secure and with accurate knowledge of the area in which you are investing.How has been since the first day of our foundationcorporate responsibility is a vital part of our strategy and includes responsible investing. The United Nations-supported Principles for Responsible Investment (PRI) is a standard to all our investments. The Principles provide a framework for a more stable, sustainable financial system. Including these points alongside traditional financial metrics will help us to achieve superior risk-adjusted long-term financial return.
I would like to thank you for the confidence you have placed in our group of companies, and I hope to continue to working with and for you to ensure a solid growth of our group.
Founder and CEO
July 2017, Washington D.C., USA