Risk information

1. By investing into a real estate project through ESE Capital you will be investing in a Bond instrument issued by Special Purpose Vehicles (SPV’s) which provide a funding facility for the purpose of real estate development. If the project fails, Investors can lose some or all of the money they invested.
2. Advertised rates of return aren’t guaranteed. This is not a savings account. If the project doesn’t pay the SPV back as agreed, you could earn less money than expected or nothing at all. A higher advertised rate of return means a higher project risk with an increased probability of losing your money.
3. Due Diligence and project oversight is carried out by the platform on each ESE Capital project that you are investing into to assess how well they are expected to perform. However, you should always also do your own research before investing.
4. These investments are sometimes held in an Innovative Finance ISA (IFISA). While any potential gains from your investment will be tax free, you can still lose all your money. An IFISA does not reduce the risk of the investment or protect you from losses.

• Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
• Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.

• This type of property investment could face delays that can delay payments. These investments could also fail altogether and be unable to repay investors their money.
• You have the opportunity to sell your investment early through the secondary market but there is no guarantee you will be able to find someone willing to buy.

• This investment has a complex structure to ensure the interest of investors is protected. Investments are made into each designated project SPV and are ring fenced from other project SPV’s to ensure full transparency of each investment made.
• You may wish to get financial advice to understand how the structure works before deciding to invest.

• Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
• A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

Investors on the platform purchase shares in a UK private limited company, established specifically to purchase a particular piece of land – or investment vehicles (each one an “Investment Vehicle”). The shares that the investor holds in the Investment Vehicle relate to the amount of money that they have invested.

For example, an opportunity to buy a piece of land worth £100,000 becomes available on the platform. Investor A would like to invest £10,000 in that piece of land. When the land is bought by the Investment Vehicle, Investor A would buy shares which would amount to one tenth of the shares in the relevant Investment Vehicle that owns the land (ie 100,000 / 10,000 = 10%)

No, there will be no need for you to provide any additional capital. All costs relating to the land investment will be borne out of the total initial amount crowdfunded by investors.

In certain unusual circumstances, there may be additional costs incurred in relation to the land. Where any additional costs are incurred, ESE Capital has the right to take out a loan to fund the additional costs, which will be secured against the relevant land. This loan will be repaid from the gross sale proceeds, once the land is sold. If this situation arises then investors will be informed clearly, fairly, and in a transparent way, about the situation and provided with details about the loan which is required.

There is a:
- 2% investment fee, which is calculated based on your investment amount and is paid at the time you invest; - specified initial management fee, which will vary across different investment opportunities. This one-off fee will be clearly displayed on our website along with the details for each investment opportunity; and
- 5% success fee, following successful realisation of the value of the land, following sale of land. This will be 5% of the amount of the profit that is made on the sale of the land.

The initial management fee will cover the costs associated with sourcing and structuring the investment opportunity as well as the ongoing costs associated with the operation, management and administration of the investment. This fee will also cover the costs of selling the land and realising the value of the investment.

The 5% success fee is intended to show investors that we have an incentive to get the best out of each piece of strategic land, as we will have a small share in the profit made on the land.

If and when the relevant land is sold, investors will receive all of the net return realised (less the 5% success fee) and you will receive an amount in proportion to the amount that you initially invested.

The shares in an Investment Vehicle that holds land are illiquid and your investment cannot normally be released or realised until the land is sold by the Investment Vehicle. However, we will offer a matched bargain service, which means that if you notify us that you would like to sell your shares we will attempt to match you with an investor who would like to buy them. Your ability to sell your shares will always depend on whether there is demand by others to buy them. If you would like to know more about our matched bargain service please contact us at: information@ese-capital.com

We also intend to create a secondary market on the platform where shareholders can sell their shares to purchasers on a matched trade bargain basis as part of the platform. We will notify our investors when this part of the platform becomes available.

Each land investment opportunity is owned by a separate company, which separates it from ESE Capital and the other Investment Vehicles that hold other investments made on the platform.

When you deposit money into the ESE Capital platform to invest in a land investment, it is used to purchase shares in the relevant Investment Vehicle, which will then use that money to purchase a portion of the relevant land.

Yes, ESE Capital is authorised and regulated by the Financial Conduct Authority (FCA) with firm reference number 469499.

We take complaints very seriously. Please call us on +44 (0)20 7118 4040 or e-mail us at information@ese-capital.com

You also have the right to complain to The Financial Ombudsman Service (FOS). The FOS is a free service to consumers for the impartial resolution of complaints. You may contact the FOS at any stage of your complaint for free and impartial advice but you must have allowed us the opportunity to resolve the complaint within our Internal Complaints Procedure before they will review your complaint. Details of our Internal Complaints procedure are available on request (contact details above) and without charge.

You can contact the FOS directly by email at complaint.info@financial-ombudsman.org.uk by telephone on 0800 0234567, or in writing to The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR.

You can also now make a complaint through the European Commission’s Online Dispute Resolution Platform (the ‘ODR Platform’) which can be accessed at http://ec.europa.eu/consumers/odr/. The ODR Platform can be used for resolving your dispute. Through this platform you can submit a complaint by filling in an electronic form.