EPI 4 Investor plc - European Property Investments

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Risk Factors Section 11This is a speculative Investment. Prospective investors should seek their own professional advice beforeproceeding. Returns will depend on a number of factors. In particular, investors should consider thefollowing key risk factors. Whilst not comprehensive, the following is intended to highlight some of theprincipal issues which potential investors should consider:Investment RiskThe value of any investment made inthe Company may rise as well as falland the amount investors receiveback from the Investment may be lessthan the amount originally invested.An investment in the Company isspeculative in nature and involvesa degree of risk. Investors must beprepared to bear the economic riskof this Investment for an indefiniteperiod and be able to withstand totalloss of the Investment. There is noguarantee that the Company will besuccessful in raising sufficient funds tocontinue or complete its business planafter early investors have invested inthe Company or that it will proceedwith all of the proposed Investments.Investors should not consider thisInvestment unless they are preparedto accept changes to the proposedportfolio. The initial minimum sum tobe raised is € 2,000,000 which will beused to invest in the Logistic and SolarPark. As further funds are raised, thesewill be used to secure various projects.In the event that the Company isunsuccessful in raising the initial€ 2,000,000 under Phase 1, funds willbe returned to investors.Gearing RiskBank borrowings representapproximately 65 % of the purchasecost of each property to be acquired.Therefore, allowing for disposalcosts of 0.5 % in market value, afall in market value could result in34investors losing some, or all, of theirinvestment. In addition, there is therisk that net rental income falls andbank repayments cannot be made.The bank concerned would then be ina position to enforce its security andsell the building to repay the debtowed to it.Property RiskProperty values are affected by suchfactors as interest rates, economicgrowth, fluctuations in yields, changesin legislation and tenant default. Therecan be no guarantee on the overallperformance of the German propertymarket over the coming years or thatany of the exit strategies outlined inthis Information Memorandum will beavailable or practicable at the time ofintended exit.Liquidity RiskThis is a medium - term investment andinvestors’ interests may be difficult totransfer. Investors should not considerthis Investment unless they areprepared to postpone receiving anyreturn on their equity until the end ofthe life of the Investment.Tax RisksThis document has been prepared onthe basis of current Irish and Germantaxation legislation and the currentinterpretation thereof. These factorsmay change in accordance withfuture amendments to the law orinterpretation of the law.Target Level of ReturnNo representation is made as to thefuture performance of the Investmentand there is no assurance given thatthe Investment will achieve the targetlevel of return.Exit RisksExit strategy is conditional onprevailing market conditions duringthe life of the Investment.Early Years RiskThe costs of purchasing the propertieswill be circa 10 % of the total purchaseprice. Once sufficient funds are raised,the cost of purchasing will be paidfrom the fund. An initial fall in thefund value will result.Political RisksGermany is a politically stable anddemocratic environment. Howeverthis position could change during theterm of this Investment, which couldhave an effect on market conditions .
The Next Step Section 1235
Page 2: Important Notice Section 1This docu
Page 6 and 7: Investment Summary• Minimum Inves
Page 8 and 9: Professional Team & Track Record Se
Page 10 and 11: Team - Background to Promoter10Gerr
Page 12 and 13: Target Portfolio Locations Section
Page 14 and 15: 5.2 Berlin - B5 Logistics and Solar
Page 16 and 17: 5.3 Bamberg - Student Apartments /
Page 18 and 19: 5.4 Munich - Office and Lab Complex
Page 20 and 21: 5.6 Berlin, Munich, Regensburg - Th
Page 22 and 23: 5.7 Kiel - Burger King (Under Contr
Page 24 and 25: Investment Structure Section 6The s
Page 26 and 27: The Board of Directors/Management S
Page 28 and 29: Taking account of the present marke
Page 30 and 31: It is planned to exit from the four
Page 34 and 35: The Next Step Section 12Terms and C

EPI 4 Investor plc - European Property Investments

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