Risk factors

Risk of capital loss

The value of the Securities (shares and/or bonds) held by the investor in the proposed investment solutions (hereinafter, the "Solutions") is directly linked to the valuation of the underlying assets, and investors may lose a substantial part of their investment if the value of the assets decreases.

Liquidity risk

Some markets in which the Solutions may invest can sometimes be illiquid or less liquid. This may affect the value of the Securities held.

General economic and interest rate risks

The success of any investment activity depends on the general economic conditions, which can influence the level and volatility of interest rates and real estate asset prices in general, as well as the liquidity of real estate markets. Certain market conditions, including unexpected volatility or illiquidity in the market where the Solutions may hold positions or assets directly or indirectly, could harm the Solution's ability to achieve its objectives and/or cause losses.

Redemption cap

Significant redemptions of Securities (if possible under the Solution's conditions) within a limited time frame could force the concerned Solution to liquidate its investments more quickly than desirable, which could have an adverse effect on the value of the Securities. To prevent such consequences, redemptions of Securities may be capped under certain conditions.

Risks related to the absence of guarantee

An investment in one of the Solutions involves certain risk factors and considerations related to the structure of the Solution itself and its investment objective, which potential investors should evaluate before deciding to subscribe. No assurance or guarantee can be given that the chosen Solution will achieve its investment objective. Past performance is not a guarantee of future results.

Borrowing risks

Some of the Solutions may have access to borrowing for investment purposes. Investors' attention is drawn to the risks associated with borrowing as described in the documentation of the concerned Solutions.

Potential conflicts of interest

Depending on the type of Solution and structure, different stakeholders (managers, advisors, administrators...) may be engaged in similar functions on behalf of other investment solutions that may have similar investment policies. This may result in a situation of conflicts of interest.

Investment concentration risk

The investment objectives of the Solutions may provide for a gradual diversification of the asset portfolio composition. However, this diversification can only be achieved after a certain period. Therefore, there may be a concentration risk for a limited duration.

Regulatory and tax risk

The Solutions must comply with various legal and tax obligations, including those imposed by securities laws, corporate laws, EU standards, construction law, and local laws in different jurisdictions. If any of these laws were to change during the existence of the concerned Solution, the legal and tax requirements to which the Solutions and investors may be subject could differ significantly from current requirements. These changes could affect the performance and financial situation of the concerned Solutions.

Co-investment risk

Depending on the Solutions, they may invest in real estate assets through legal structures jointly held by one or more other investors. Therefore, there may be a risk of disagreement between co-investors regarding the opportunity to sell a property or continue the construction of a property, or even make the necessary investments related to one or more real estate assets. Co-investors may also find themselves in situations of divergent or opposing interests at different stages of investments or holding real estate assets. The valuation of assets and consequently the Securities of the concerned Solution could be negatively affected.

Real estate valuation

Real estate as an asset class does not necessarily fluctuate in the same way as stocks and fixed-income securities. Investors may experience periods where real estate does not perform as well as other asset classes. In particular, the value of real estate assets may fluctuate due to factors such as changes in interest rates, inflation, and the level of activity in the economy.

Past charges and environmental risks

Investments made by the Solutions may be exposed to environmental risks and past charges. Despite the diligence of the Solutions' representatives, the value of real estate assets may be affected by environmental risks such as non-compliance with various applicable regulations, resulting in compliance costs or an administrative decision to cease operations. This also applies to past charges that would only manifest during certain works (remnants of the past, buried objects, etc.). They may therefore result in significant unforeseen restoration costs or cause a significant slowdown in works and have negative effects on the valuation of the Solutions' assets.

Unlisted shares risks

It is not planned for the Securities of the Solutions to be admitted to the official listing on a capital market. Therefore, there is a risk of less liquidity of the Securities if an investor wishes to sell their Shares.

Counterparty risk

The Solutions may be exposed to the credit of one or more counterparties due to their investment positions. If a counterparty fails to meet its obligations and the concerned Solution is slow to exercise its rights on its portfolio investments, it may suffer a decrease in the value of its position, a loss of income, and costs related to its rights.