Risk warning

●Draft — pending legal review and sign-off

This page sets out, in general terms, risks associated with the kind of real estate investment and development activity described on this website. It is not a complete list, and it is not a substitute for the risk disclosures in an offer document or for your own advice.

Capital is at risk

You may lose some or all of the money you invest. Real estate investments are not capital guaranteed and are not covered by any government deposit guarantee.

Principal risks

• Market risk. Property values, rents and sale prices move with economic conditions, interest rates, credit availability and demand, and can fall.
• Development and construction risk. Projects can be delayed, cost more than budgeted, or be affected by contractor insolvency, labour and materials availability, defects, weather or site conditions.
• Planning and regulatory risk. Approvals may be delayed, refused, or granted on conditions that change a project's feasibility. Law, tax and planning policy can change.
• Liquidity risk. Real estate interests are illiquid. You may not be able to exit at a time of your choosing, or at all, and there may be no secondary market.
• Leverage risk. Where a project uses debt, movements in value and interest rates are magnified, and a breach of finance covenants can result in the loss of the asset.
• Concentration risk. An investment in a single project or a single market is not diversified, and is exposed to events specific to that asset or location.
• Counterparty risk. Outcomes depend on developers, builders, tenants, purchasers and financiers meeting their obligations.
• Cross-border risk. Investments outside Australia carry additional exposure to currency movements, foreign law, foreign tax treatment, differing property and title systems, and restrictions on repatriating capital.
• Timing risk. Expected completion dates are estimates. Delay affects holding costs, financing and the timing of any return.

Before you invest

Read the relevant offer or disclosure document in full, consider whether the investment suits your objectives, financial situation and needs, and obtain independent financial, legal and taxation advice. If you do not understand a risk described in an offer document, ask before you commit.

See also our disclaimer andprivacy policy.