This year we learned, in practice, the difference between possession and title — and why permanent capital turns that difference into an advantage rather than anguish.
In June and July we received possession of the two remaining units from the 2024 acquisitions, and we put them up for rent immediately. The deeds arrived in December, later than planned. The cause was not construction — the buildings have stood for years — but the paperwork that turns a single-owner building into units that can be sold one by one: subdivision permits and the constitution of the condominium regime.
Whoever buys individualized units of a building acquired in bulk also buys that process. We knew it when we signed. What we did control — contracts, delivery terms, complete files — was resolved from the start, so the wait was just that: waiting, not risk. The order of events sums up the year well: the cash flow arrived before the paper, and the paper arrived complete.
With the first three units titled and in operation, the fund's income core is now running. And between June and August we signed two more acquisitions, under the same thesis and in the same developments, with deliveries scheduled for June and August 2026. The committed portfolio thus stands at five units: three in operation and two to be received.
The year brought another first as well: the private-credit platform made its first loans — two transactions with a single counterparty, on the house standard: tangible collateral, enforceable documentation, and a defined payment schedule. Starting this platform with a single relationship was deliberate: we would rather know one counterparty deeply than spread capital across many we barely know.
We close the year the way we started it: unhurried, conservatively levered, and convinced that patience — when backed by documentation that withstands scrutiny — is the best-behaved asset in any cycle.
Xillion Capital