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SPV

English translation: special purpose vehicle

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12:40 May 17, 2005
English to English translations [PRO]
Investment / Securities
English term or phrase: SPV
NVESTMENT SUMMARY

• PRIME OFF MARKET HOTEL IN LONDON’S WEST END

• FREEHOLD

• 117 ROOMS & SUITES 4 STAR DELUXE 120,000 SQ FT

• ROOM RATES £210 - £400 PER NIGHT

• LOCAL MANAGEMENT COMPANY

• SALE UNENCUMBERED, VACANT POSSESSION

• OWNERSHIP SPV CAN BE ACQUIRED

• PRICE REQUIRED £100 MILLION

SPV??? what does it stand for? and what does it mean?
Waleed Mohamed
United Arab Emirates
Local time: 07:02
English translation:special purpose vehicle
Explanation:
A special purpose entity (SPE) (formerly "special purpose vehicle") is a firm created by a company to fulfill narrow or temporary objectives. For example if a company wished to overthrow a leader in a country, they may form an entity to execute the coup d' tat; once the objective has been achieved, the special purpose entity would be seized and operated by the company. A special purpose entity is typically almost entirely owned by the parent company, but it is required that at least 3% be owned

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Note added at 5 mins (2005-05-17 12:45:53 GMT)
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A private company that has been set up with the specific and sole objective of carrying out a given project. Upon completion of the project, it may also be contracted to provide a service associated with the project to the procuring entity.
https://www.marketplace.lloydstsb.com/doc/glossary/pfi.html

The project company established by the sponsors which (or Special Purpose Company) has as its sole purpose the delivery of a project.
www.stirling.gov.uk/index/services_homepage/learning/ppp/pp...

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Note added at 37 mins (2005-05-17 13:18:02 GMT)
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\"once the objective has been achieved, the special purpose entity would be seized and operated by the company. A special purpose entity is typically almost entirely owned by the parent company, but it is required that at least 3% be owned by another investor.\"

So what the ad is saying is that this company can be acquired in addition to the hotel.
Selected response from:

Robert Donahue
Grading comment
Thank you Robert and all
4 KudoZ points were awarded for this answer

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Summary of answers provided
3 +5special purpose vehicleRobert Donahue
5Special Purpose Vehiclejuvera
3 +1special-purpose vehicle
Jarema
4 -1off-shore company in Jersey
swisstell


Discussion entries: 4





  

Answers


4 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
spv
special-purpose vehicle


Explanation:
special-purpose vehicle

Jarema
Ukraine
Local time: 06:02
Specializes in field
Native speaker of: Native in RussianRussian, Native in UkrainianUkrainian

Peer comments on this answer (and responses from the answerer)
agree  Robert Donahue: We tied. :-)
18 mins
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7 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
spv
off-shore company in Jersey


Explanation:
don't ask me to spell out the abbreviation, 'cause I do not know, but the purpose here is clear. And you will find plenty of Google hits to boot under "Jersey SPV".

It is not a Special Purpose Vehicle for that price !!

swisstell
Italy
Local time: 05:02
Works in field
Native speaker of: German

Peer comments on this answer (and responses from the answerer)
disagree  Robert Donahue: The abbreviation (spelled out) would be Special Purpose Vehicle. Jersey isn't the only place they can be set up either. http://www.sfmlimited.com/SPVs/spvs_channelislands_jersey.ht...
4 mins
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11 mins   confidence: Answerer confidence 5/5
spv
Special Purpose Vehicle


Explanation:
A private company that has been set up with the specific and sole objective of carrying out a given project. Upon completion of the project, it may also be contracted to provide a service associated with the project to the procuring entity.
hthe ttps://www.marketplace.lloydstsb.com/doc/glossary/pfi.html

The most popular method is to sell the company that owns the property rather than the property itself. This involves a two step process. First, the property must be transferred into a special (or single) purpose vehicle company (SPV) within the sellers' group. Second, when the property is due to be sold, the purchaser buys the shares in the SPV for the agreed price for the property. Stamp duty on the purchase of shares is payable at only 0.5% (or avoided completely if the SPV is a non-UK company and the transfer is completed off-shore). Depending on the value of the property, this could represent a significant saving.

Unfortunately, there are certain drawbacks to proceeding by this method. The biggest potential pitfall surrounds the transfer of the property to the SPV. Normally inter-group transfers are exempt from stamp duty. However, relief is subject to certain restrictions and any transfer for which exemption is sought must be adjudicated by the Stamp Office. Relief may be denied if the inter-group transfer is made to the SPV "... in connection with an arrangement ..." to sell the shares to a third party purchaser. The test is quite flexible and open to a wide interpretation. There does not need to be a contract in place for the sale of the SPV for the exemption to be denied, although there has to be more than simply a general intention to sell at some future date. Sellers should therefore reorganise their ownership prior to marketing the property for sale and well in advance of a purchaser arriving on the scene if the stamp duty exemption is to be achieved.

Remember, also, that selling the shares in a company rather than the property itself, raises other issues. As the purchaser will acquire all assets and liabilities (including the tax position) of the SPV company (and not just the property itself), greater due diligence is required if a 'clean' purchase is to be achieved. Also, the unavailability of capital allowances based on a proportion of the purchase price may make the deal unattractive to a purchaser. Similarly, from a sellers' perspective, the inability to recover input VAT on the sale of shares can cause problems and it is likely that a capital gain based on the market value of the property at the time of the inter-group transfer will arise on the sale of the SPV.

The cost-benefit analysis of proceeding by way of an SPV sale is not as straightforward as simply comparing the rates of stamp duty. The key to a successful and cost effective SPV sale is forward planning. Provided the property is packaged into an SPV well before it is marketed for sale (or better still, originally acquired by the seller in an SPV), it should be possible for a seller to offer (and share in the benefit of) a sale with a significantly lower stamp duty cost.

Published in The Property Executive November/December 1999.



juvera
Local time: 04:02
Native speaker of: Native in HungarianHungarian
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4 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +5
spv
special purpose vehicle


Explanation:
A special purpose entity (SPE) (formerly "special purpose vehicle") is a firm created by a company to fulfill narrow or temporary objectives. For example if a company wished to overthrow a leader in a country, they may form an entity to execute the coup d' tat; once the objective has been achieved, the special purpose entity would be seized and operated by the company. A special purpose entity is typically almost entirely owned by the parent company, but it is required that at least 3% be owned

--------------------------------------------------
Note added at 5 mins (2005-05-17 12:45:53 GMT)
--------------------------------------------------

A private company that has been set up with the specific and sole objective of carrying out a given project. Upon completion of the project, it may also be contracted to provide a service associated with the project to the procuring entity.
https://www.marketplace.lloydstsb.com/doc/glossary/pfi.html

The project company established by the sponsors which (or Special Purpose Company) has as its sole purpose the delivery of a project.
www.stirling.gov.uk/index/services_homepage/learning/ppp/pp...

--------------------------------------------------
Note added at 37 mins (2005-05-17 13:18:02 GMT)
--------------------------------------------------

\"once the objective has been achieved, the special purpose entity would be seized and operated by the company. A special purpose entity is typically almost entirely owned by the parent company, but it is required that at least 3% be owned by another investor.\"

So what the ad is saying is that this company can be acquired in addition to the hotel.


Robert Donahue
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4
Grading comment
Thank you Robert and all

Peer comments on this answer (and responses from the answerer)
agree  Konstantin Kisin
21 mins
  -> Thanks Konstantin

agree  Jarema
26 mins
  -> Thanks Jarema

agree  xxxAlfa Trans
2 days2 hrs
  -> Thanks Marju

agree  xxxgtreyger
3 days7 hrs
  -> Thanks Gennadiy

agree  Andrew Patrick
5 days
  -> Thanks Andrew
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