We have a solid and experienced local team to search for and acquired old or abandoned residential and commercial buildings in prime locations. The buildings, including all units, are redsigned,reconstructed and refurbished to unleash its new in 8 to 18 months time. All units will be supplied with necessary electronics; including oven, washing machine, microwaves, lightings, etc. We also have a very talented in-house interior designer and thus as per request, residential apartments can be fully furnished, including beds, chairs, dining tables, sofas, bedding linens, pillows etc.
Property Management services are also provided to help our investors with day-to-day short term rental services and maintenance works to achieve higher rental yields up to 12% annual return. Most of the time, most of our units are sold to realize profits and to distribute back to our shareholders annually or bi-annually. However, keeping a portion to enjoy the appreciation in asset price as well as high annual rental return is also taken as one of our strategies in recent years.
We specialize in rather smaller projects to reduce our risks and diversify our portfolio. In most cases, buildings with no more than 2000 square meters sellable area are the typical targeted buildings to acquire and refurbish. We have a very strong and professional team in sourcing for suitable properties all year round. Once a targeted building is located, negotiations are instantly made with the understanding that full payment can be made up front, thus channeling down acquisition costs leading to higher profit margins when buildings are resold.
Buildings with a lower than average market rate are targeted. We have a very strong professional team in sourcing targets in each city center all year round. We have a very well diversified portfolio across each city in different center locations. Because of our unique strategies, risks are minimized in case of economic downfall; we are able to exit and withdraw quickly to minimize our downside risks. We only partner up with the very top tier respective partners in every role we need in running our business locally. We only work with international wide lawyer firms, architectural companies. We also only work with top tier construction contractors as well as locally famed interior designers and decorators.
We strive to generate high annual returns on our equity invested by our shareholders by investing in city center properties and to redesign and refurbish and resell most units. We distribute profits to our shareholders annually or bi-annually.
We always cooperate with local governments, city halls etc to help the cities in renewing old or even abandoned properties or areas to give a new look and new life to buildings owned by the city government. We also help to bring in international tourists mostly from China in boosting the local economic performances. Thus, we are always a much respected company in cities we invest in. We also participate in many local charity events and give donations to the local needed groups.
Some of our projects are located in very city-centered touristic area. Most of these buyers are investors and thus we provide rental management services. We in charge of decorating the units, listing them onto respective websites for short term rental purposes to achieve higher rental yields for our clients. We receive and greet guests, manage check-in and out, cleaning and hygiene services, paying bills as well as maintenance of the unit. In return, we charge 25% to 30% of the rental income. Most of our clients are very satisfied with our services in maintaining and managing the units they bought.