What can go wrong
An allocation involves a risk of loss. It is suitable only for clients who can accept that risk and who meet the onboarding criteria. Read this page and the Framework Agreement before you allocate.
The main risks
This list does not cover every risk. We recommend reading the agreement with a family member or an independent adviser.
- a
- Capital is not guaranteed. Property values can fall, and you may lose part or all of your capital allocations.
- b
- Income is not guaranteed. Distributions depend on rent actually received, and can fall or stop during vacancies, arrears or major repairs.
- c
- Property is not quickly sold. Exit requires 60 days’ notice, and payment may take up to 6 months. Do not allocate money you may need at short notice.
- d
- Exit costs. An exit in year 1 carries a 3.0% fee and in year 2 a 1.5% fee.
- e
- Fees. The acquisition and management fees are charged whether or not the properties perform well.
- f
- Currency. Exchange rates may change the amount you receive in your own currency.
- g
- Law and tax. Changes in law, tax or regulation may affect the portfolio or you.
- h
- Counterparties. Tenants, the holding entity or the company may become insolvent.
- i
- No direct title. You hold economic rights and/or participation units, not registered title to the buildings.
- j
- Borrowing. The portfolio may use bank financing of up to 50% of its value, which magnifies both gains and losses.
- k
- Estimates are not promises. Any income estimate is based on the assumptions stated with it. Past performance does not indicate future results.
Company liability
The company is liable for loss caused by its negligence, breach of the agreement, misrepresentation or wilful misconduct, or that of its staff or contractors. It is not liable for a fall in value caused by general market conditions where it has complied with the agreement.
Nothing in the agreement removes any protection that the law of your country of residence grants and that cannot be excluded by contract, or your right to complain to a competent regulator. Clause 9.4