business model — Virtus Atlas

Context

In the last 30 years (since the return of democracy) income per capita grew fivefold, poverty declined 60% to less than 10%, and various social indicators (from life expectancy to literacy rates) have increased to middle income levels, enabling Chile to join OECD.

Like any country facing changes of this magnitude, Chile had to deal with growing social demands, particularly from those "left behind", which provides forward-looking companies, like Virtus Atlas, with promising opportunities that respond to emerging needs.

Currently, both Chile and the rest of the world are going through difficult times, which closes doors to investments, but at the same time, opens new opportunities that have not been explored and are a reflection of an evolved and increasingly informed market.

In regards to the current crisis, some rating agencies have commented the following about capital markets in Chile:

“This will mean two years of high uncertainty, low investment, delayed consumption and low performance.”
-Bank of America

“(There will be) greater risk in industries that could be affected by new regulations or reforms“
-Moody’s

“We do not believe that Chile will lose its investment grade, but it will have poorer results in its ratings.“
-Oxford Economics

At Virtus Atlas, we are aware of the local context and understand the risk involved in short-term investing, which we see as being an obsolete model given the macro economic context.

Which is why we have developed an innovative business model that responds to the demands of both investors and end customers.

NEW BUSINESS MODEL

THIS MODEL IS BASED ON THREE FUNDAMENTAL POINTS WHICH AIMS TO REDUCE THE RISK OF INVESTMENT AND PRotects THE BUSINESS:

1

Social Context

Our objective is to protect ourselves from local uncertainty resulting from the latest events in Chile. We achieve this by linking our business model to foreign economies and their cashflows, thus not subject to the local market. For that, we created a strategic alliance with an international operator which secures customer flows from all over the world.

2

Investment Economic Cycle

Generally, the real estate investment’s economic cycle is between 36 to 48 months. We have established a 10-year cycle, which allows us to generate recurring resources and disengage ourselves from short-term uncertainties.

3

Diversified Portfolio

The investment volume increases in such a way that it generates a package of diversified projects, both in its segment as in its location in order to reduce risk.