Risk factors
Risk of Capital Loss
As the value of the Shares held by the investor is directly linked to the value of the underlying assets, Shareholders may lose a substantial portion of their investment if the value of the Fund's assets falls.
Liquidity Risk
Certain markets in which the Fund may invest may be insufficiently liquid or illiquid at times. This may affect the value of the Investment Fund's shares.
Redemption Limits
Large redemptions of Shares within a limited period of time could require the Fund to liquidate its investments more quickly than would be desirable, which would adversely affect the value of the Shares. To prevent such consequences, redemptions of Shares may be capped under certain conditions.
Risks Related to the Absence of a Guarantee
An investment in the Fund involves certain risk factors and considerations relating to the structure of the Fund and its investment objective, which potential investors should evaluate before making a decision to subscribe for Shares. No assurance or guarantee can be given that the Fund will succeed in achieving its investment objective. Past performance is no guarantee of future results.
Risks related to indebtedness
The Fund may borrow permanently for investment purposes. Investors' attention is drawn to the risks associated with borrowing as described in the Fund's documentation.
Possible conflicts of interest
The Manager's representatives, advisors and the Fund Manager are also engaged in similar functions on behalf of other investment funds with similar investment policies. This may result in a conflict of interest situation.
Investment concentration risk
The Fund's investment objectives provide for a gradual diversification of the composition of the asset portfolio. However, this diversification will only be achieved after a period of two to three years, with limited diversification of the Fund's portfolio assets.
Recent Formation of the Fund
The Fund is newly formed and has no operating or performance history. There can be no assurance that the Fund's investment objective will be achieved.
Regulatory and Tax Risk
The Fund must comply with various legal and tax requirements, including those imposed by securities laws, corporate laws, EU standards, construction laws and local laws in various jurisdictions. If any of these laws change during the term of the Fund, the legal and tax requirements to which the Fund and Shareholders may be subject may differ significantly from current requirements. These changes may affect the performance and financial condition of the Fund.
Liquidity Risk
The Fund invests primarily in illiquid real estate. The Fund may encounter difficulties in disposing of assets quickly.The investments to be made by the Fund may be extremely illiquid with difficulties for the Fund to dispose of its assets in the market. The eventual liquidity of all investments will depend on the success of the proposed realization strategy for each investment. Such a strategy could be adversely affected by various factors. There is a risk that the Fund may not be able to achieve its investment objectives by disposing of assets at attractive prices, at the appropriate time or in response to changing market conditions.
Changes in real estate markets may result in a decrease in the value of the assets held by the Fund
The Fund's investments in the real estate sector are subject to particular risks and several factors affect the value of these real estate assets (general economic climate, oversupply of space/shrinkage of demand for real estate in a given region, competition, regulations and taxation, interest rates, etc.). All of these factors may negatively affect the valuation of the Fund's assets and, consequently, the value of the Shares held by Shareholders.
Co-investment by the Fund
The Fund may invest in real estate assets through legal structures jointly owned by one or more other investors. There is a risk of disagreement between co-investors as to the appropriateness of reselling a property or pursuing the construction of a property, or even making the necessary investments in connection with one or more real estate assets. Co-investors may also find themselves in situations of divergent or opposing interests at different stages of investment or ownership of real estate assets. The valuation of the assets and consequently of the Fund's shares may be negatively affected.
Changes in interest rates
In addition, the income from and value of real estate assets are affected by the level of interest rates and the availability of financing. The Fund's income would be adversely affected if interest rates were to fluctuate to the detriment of the Fund's assets (higher credit costs or reduced demand in the real estate market due to higher interest rates).
Real Estate Valuation
Real estate as an asset class does not necessarily fluctuate in the same manner as equities and fixed income securities. Investors can expect periods when 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.
Historical liabilities and environmental risks
The investments made by the Fund are exposed to environmental risks and historical liabilities. Despite the diligence of the Fund's representatives, it cannot be ruled out that the value of the real estate assets may be affected by environmental risks, such as failure to comply with the various applicable regulations, resulting in compliance costs or an administrative decision to cease operations. This is also the case for inherited liabilities that would only become apparent during certain works (remains of the past, buried objects, ....). They may therefore entail significant unforeseen restoration costs or lead to a significant slowdown in work and have a negative impact on the Fund's valuation.
Unlisted equity risks
The Fund's shares are not expected to be officially listed on a capital market. As a result, there is a risk of reduced liquidity of the Shares should a Shareholder wish to dispose of his Shares.