This is a risk warning from Propiteer Limited, a company incorporated under the laws of England and Wales under company number 09414573 and have our registered office at Olivers Barn, Maldon Road, Witham, Essex CM8 3HY (“Propiteer”, “We”, “we”, “us”, and “our”, as applicable); to all users of the website www.propiteer.com (the “Website”), that intend to make an investment in real property via the Website.
As with most investment decisions there are risks involved. This section outlines some of these risks. Please read these risks carefully as it is important that you understand the types of risks associated with investment activity.
Your capital is at risk
The value of your investment may go down as well as up and, therefore, your capital is at risk. You may lose all your invested capital and you will need to ensure that you are able to afford this loss.
Absence of Financial Services Compensation Scheme (FSCS) cover
Your investment is not covered by the UK’s FSCS arrangements, nor any other statutory or voluntary compensation scheme.
Tied investment opportunities
The investment opportunities presented by us are, unless expressly otherwise stated are originated, developed and managed by us or by other parts of the wider group of undertakings of which Propiteer is a part and under common ownership and control. Accordingly, you should be aware that there may other development projects which may meet your investment and risk requirements better. Our selection of projects has been undertaken with a view to provide investors with the opportunity to participate in our projects. The success of these projects is concentrated in the hands of key staff at Propiteer and within the wider group of undertakings within the group.
Property values may decline
Real estate property values may go up or down and there are various reasons why the value of a property may decrease. Past performance of a property is not a reliable indicator of future valuations or income streams. Any future downturn in the real estate market generally or changes to local environmental circumstances such as weather conditions, natural disaster, planning permission decisions, or local demand, etc. could have an adverse effect on the value of any investment you make, meaning that you may receive lower returns than you expected or potentially no returns at all. You should make sure you have considered this risk from the outset.
Asset & investment values may decline
Asset and investment values may go up or down and there are various reasons why the value of an asset or investment may decrease. Past performance of an asset or investment is not a reliable indicator of future valuations or income streams. Any future downturn in the market generally or changes to the fundamental condition or impairment of an asset or investment specifically such as relative value, performance, the acts or omissions of management, geo-political impacts, etc. could have an adverse effect on the value of any investment you make, meaning that you may receive lower returns than you expected or potentially no returns at all. You should make sure you have considered this risk from the outset.
Investments made via our Website are generally illiquid. This means that once you have committed your money it could be difficult for you to exit your investment and get your money back at a time that suits you.
We do not offer a secondary market, you will have to wait until the full term of your investment or any redemption notice period.
By making an investment on our Website, you acknowledge that you are making a long term investment. You will not have control over the day-to-day decisions made in relation to a particular investment or the timing of your exit.
We reserve the right in certain circumstances to sell the underlying investment in which you have made an investment and return net proceeds to all investors.
We will give you notice in the event that such circumstances arise. However, this may happen at a time which you do not consider ideal and you may receive back much less than you initially invested. Any taxable income may also crystallise sooner than expected.
You must ensure that you are aware of your tax obligations or any related risks that might apply to you as a result of any investment made by you on our Website. We encourage you to consult with appropriately qualified tax professionals regarding your tax circumstances.
Adverse changes to exchange rates
The functional currency of your investment will be Pounds Sterling (GBP,£). You should consider the risk of losses that may arise from currency fluctuations between this and your own functional currency throughout the duration of your investment.
Very specific provisions are required where an investment is purported to be guaranteed. This includes clear details of the giver of the guarantee, what conditions are attached, such as duration, amount, etc. and what circumstances the guarantor may not be able to honour the guarantee.