About Us
What is ProGreen?
ProGreen Properties, Inc. (ProGreen) (OTCQB-PGEI), based in Birmingham, Michigan, is a company acquiring, refurbishing and upgrading potential income-producing residential real estate and transforming them into high yielding investment properties. ProGreen believes that Michigan offers some of the best investment opportunities in the recovery of the previously very distressed US property market.
The market is showing definite signs of improvement, but there are still a huge number of foreclosed properties coming to the market. And even if the credit market is showing signs of easing, for the average person, credit is still very restricted, excluding a vast number of potential buyers. Foreclosures, past and present, are contributing greatly to the increased demand in the rental market, as people that have lost their homes, are unable to qualify for any new credit needed to buy again. More and more people, especially among the younger generation, have grown apprehensive about buying now than before, as they have seen and understand the result of over-borrowing, which was previously so common. The ever increasing change in the demographics, with having to move to different areas of the country, in pursuit of the best job opportunities, is also playing a big part in how people look at the housing market.
This increase in demand, together with still depressed property prices, is creating exceptional long term investment opportunities for real estate investors with market knowledge and cash to invest. ProGreen has created a unique market approach and business strategy, in order to be able to benefit from this change in the market.
ProGreen’s Business Model
ProGreen’s business model is to acquire, refurbish and upgrade existing properties into more energy efficient, comfortable and healthier homes that are leased to suitable tenants, who are willing to pay more, in order to live in a ProGreen property. We can already see an exceptional tenant loyalty, with most tenants renewing leases. ProGreen is offering professionally managed condos and houses of exceptional standards, with only a minimal competition in the market place.
To make homes more energy efficient, whenever possible and practical, we aim to improve insulation, change windows and doors, replace outdated furnaces and water heaters with more modern efficient solutions etc. Whenever financially viable, we also aim to implement other green technologies, as more economic solutions become available.
How ProGreen does it
We try to optimize space by creating more openness, with more natural light. It is common knowledge that indoor air quality in most homes is poor. We aim, whenever possible, to improve air quality through better ventilation and air filtration in heating and air conditioning systems, always trying to make ProGreen homes more eco-friendly, healthier and comfortable.
We strongly believe this is creating a “stand-out” profile of ProGreen as a company as well as making our properties unique in the market place, which will result in increased demand with sustained appreciation in value over time.
Our long term goal is to create a ProGreen Quality, Comfort and Energy Efficiency Certification (ProGreen Certification) for our homes, thus creating our own standard.
As a result of high demand and very limited competition in the rental market, ProGreen rental properties are yielding very high returns. This has created the opportunity for ProGreen to offer for sale to European investors, fully managed income producing residential real estate, producing returns that far exceed what is the norm in Europe, and still keep healthy margins as well as maintaining the property management.
ProGreen and European Investors
In April 2012, ProGreen entered into an agreement with American Residential Gap ApS (Denmark), to acquire fully managed and leased investment properties from ProGreen. The first sale was closed on April 30, 2012 and even though further sales to this group has been less than initially expected, they have continued to purchase properties from ProGreen, with the last sale closing on March 1, 2013.
We are also seeing interest from other European investors for our investment properties. On March 10, ProGreen signed a Memorandum of Understanding (MOU) with the management for Futura Fastigheter AB (Futura) (Sweden), who came to visit with us as part of their due diligence. The definitive agreement is expected to be signed during the month of May. The MOU outlines a future cooperation between the parties, where ProGreen is to provide income producing properties, previously refurbished and leased out by ProGreen, for sale to Futura. Futura will also, under the MOU, provide financing to ProGreen in order for ProGreen to be able to accelerate further acquisitions. Futura will, under the MOU, provide the total cost of acquisition as well as the cost of refurbishment to ProGreen, giving great opportunity for an accelerated expansion of ProGreen. The first tranche of funding, which will be up to $3.000,000 is expected to close before the summer.
All properties are marketed exclusively by ProGreen Realty LLC, and managed by ProGreen Property Management LLC, both wholly owned subsidiaries to ProGreen.
As of now, we are primarily focusing on well sought after areas within Oakland County (fourth richest county in the US), with safe residential communities and sought after school districts.
ProGreen’s management is expected to grow over the coming months. Please click on “The Team” to learn more about ProGreen’s management.
