Full Risk Warning

Risk Warning

Property investment involves a high degree of risk.  Prospective investors should consider carefully whether such an investment is suitable for their specific circumstances prior to making any investment decision. The information contained in this document does not purport to be an exhaustive list or summary of the risks which a prospective investor may encounter and is not set out in any particular order of priority.

Additional risks and uncertainties not presently known to The Property Source Europe Limited or that The Property Source Europe Limited deems immaterial may also have an adverse effect.

Prior to making an investment decision, prospective investors should consider whether an investment is suitable for them in light of their circumstances, tax position and the financial resources available to them.

Your Decision to Invest

A decision to invest in a property and unlisted company is a personal investment decision by you and no responsibility for the consequences of that decision is accepted by The Property Source Europe Limited or by any of its directors, agents, employees or other members.

The properties or SPVs which may acquire the properties, are newly incorporated vehicles and therefore do not have a detailed trading history on which investors can evaluate future profitability from past performance. There can be no guarantee that the property or SPV will achieve its stated return objectives.

​While the property investment information such as the financial forecasts may be provided, please be aware that these documents are not guarantees that the investment can achieve what is envisaged from the forecasts. Equally, the information provided may state certain facts and statements, but be warned that The Property Source Europe Limited is not responsible for checking the accuracy of these facts and statements (which may not always prove to be true or complete).

Loss of Capital

The value of your investment can go up as well as down. This means there is the risk that you may not get back what you put into the investment, so you should carefully consider whether such investments are suitable in light of your own personal circumstances. It is recommended that you seek advice on the investment opportunities from a suitably qualified advisor.

You should not invest more money than you can afford to lose without altering your standard of living. The Property Source Europe Limited does not guarantee any return on investment nor that the value of any investment will be maintained. Engaging in any investment activity will expose you to a significant risk of losing all or some of your investment.

Financial Services Compensation Scheme

The property investment are not covered by the Financial Services Compensation Scheme (FSCS).

Lack of Liquidity

Please be aware that property investments and shares in private limited companies are highly illiquid and the shares in the SPVs can only be transferred in very limited circumstances. This means that selling your shares at a reasonable price or for any price at all could be difficult. Any returns received will be dependent upon market conditions for the sale of the underlying property.

Variable or Lack of Dividends

Please be aware for properties held in SPVs, if property rental income is received, it will be paid to investors as a dividend net of any fees, costs and expenses. If a property does not produce rental income or if the rental income is insufficient to cover the costs and expenses of operating the property, then no dividends will be paid.

The Need for Diversification

Diversification helps reduce risk and investing in property or unlisted shares should only be done as part of a diversified portfolio. This means you should only invest relatively small amounts in different properties or unlisted companies and invest in other asset classes as well. Each investment in properties or shares should only be a small portion of the money you have available to invest.

Tax Liabilities

You are responsible for the payment of any tax arising from an investment. These may include capital gains and/or income tax. We do not provide tax advice and if you are uncertain as to how any investment will affect your personal tax position, you should seek professional advice before investing. Each SPV you invest in will be liable to pay corporation tax and any returns you receive will be paid to you net of any corporation tax due.

Past Performance and Forecasts are Not Reliable

The value of property and rents may go down as well as up and you may not get back the full amount you invested. Any projections of future performance are based on the internal calculations and opinions of The Property Source Europe Limited and are subject to change at any time without notice. Past performance and forecasts are not reliable indicators of future results and should not be relied on.  You are strongly encouraged to conduct your own due diligence to check the suitability of any investments.

Realisation

Investments in property are relatively illiquid and are likely to be more difficult to realise than listed or unlisted equities or loan notes. No assurances can be given that sales will conclude within the estimated timescales. Market forces beyond the control of the SPVs could materially adversely affect the ability to realise the investment.

​An SPV cannot predict whether it will be able to agree to sell any property for the price or on the terms set by it.

Dependance on Key Executive and Personnel

The success of an SPV is substantially dependent on the continued services and performance of its directors and senior management. The Property Source Europe Limited or an SPV cannot give assurances that members of the senior management team and the directors of the SPVs will continue to remain with the SPVs. The loss of the services of an SPV’s directors, members of senior management and other key employees could potentially damage an SPV’s business.

The Need to Raise Additional Capital in the Future

It is difficult for an SPV to accurately predict the timing and amount of future costs and therefore of any future need to raise further capital. If the plans or assumptions set out in an SPV’s business plan change or prove to be inaccurate, the SPV may require further financing in which case third party funders may require security over the property and / or the SPV and may request that they are repaid in priority.

​If the SPV is unable to obtain additional financing as needed, it may be required to reduce the scope of its operations or sell the property, and such sale may not be at the prices expected by the SPV or required to give the indicative returns highlighted in any forecast.

Government and Legislative Change and Threat of Litigation

Changes in government policy and in particular changes (namely increases) in taxation, could affect the return on any investment.
Inflation figures used in projecting financial returns may be higher or lower than originally forecast.There may be changes in future government policy in relation to tenanted properties which may have an adverse effect on returns. The tenanted property sector is a highly regulated environment and there is therefore an inherent risk of the threat of further regulation and/or litigation against landlords. In such circumstances, there is a risk that the SPV may incur time and costs and its business may be adversely affected in relation to any such claims.

Execution and Costs Risks

An SPV may find that the costs or other risks associated with buying the relevant property are in excess of the sums set aside for doing so, or are in excess of the amounts required to provide the returns identified.

Development Risks

Development of the property carries execution risk. Unanticipated situations may arise on site or may affect builders or contractors (which may include unforeseen circumstances such as the presence of protected wildlife, inclement weather, insolvency affecting contractors, unforeseen ground conditions etc.) each of which may cause increased cost or delay or cause the project to fail (in extreme circumstances).

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