We believe in full transparency so it is important for you to understand the risks of investment and how it may impact you. We have summarised some of the key risks below but a full listing is shown on the offer document for each property. If you feel you need advice regarding the suitability of this investment then you should speak to a financial advisor.
The achievement of rental and capital returns will depend on a wide range of factors relating to the economy (housing market, inflation, employment trends) and the property itself (quality of build, tenant appeal, natural disasters).
Past performance does not provide an accurate guide to future performance. Your capital is at risk and you may not get back what you invest.
Any investment will constitute shares in a limited company structured as a medium term investment (approximately 5 years) and is aimed for investors who feel they can leave their investment untouched for this time frame.
Although we will help where we can, there is no guarantee that an early exit can be achieved as this will require a sale of shares for which a buyer may not be found.
SALE OF THE PROPERTY
Any property sale will require a buyer to be found and the legal process in the UK needs to be followed which can take time. Whilst the plan is not to sell the property until the end of the investment term, it is quite possible that market conditions may be poor at that time so a decision to extend the holding period may be offered. Similarly market conditions may be stronger than expected and before the end of the investment term so a decision to sell the property and return the funds back to investors maybe taken.
INCOME & VALUATION
Income is planned by the letting of the property. The rental market is subject to fluctuations and the rental arrangements envisaged at the beginning of the term may not last for the duration.
The shares in which you will invest are unquoted, and will be issued and sold or redeemed based on valuations (including of the underlying property) which will be based on 3rd party valuations from time to time. You should recognise that the value of your shares can go down as well as up.
DEPENDENCY ON A PIECE OF LONDON
If A Piece of London is no longer able to fulfil it’s management duties there may be a delay in processing the sale of the business. However, much of the day-to-day operations can be outsourced to professional firms, such as estate agents and managing agents thereby minimizing the affect on investors. As you own shares directly in the Company, the status of A Piece of London does not in any way affect your ownership of the Company and its underlying assets.
As a holder of non-voting shares with no rights to vote other than as required by law, you will not have rights to participate in decisions to sell assets, although the directors are required to consider the interests of both voting and non-voting shareholders. Non-voting shares are used to ensure the company that owns the property can make quick decisions and not be held up by a small number of shareholders.