Investment safeguards

UK’s leading property investment platform and trading exchange

• £120m of property assets under management
• 90+ properties available for individual investment
• £55m of capital returned to clients through our unique Resale Market
• £10m paid out to clients in monthly cash dividends (rental income) 

Safeguards for your investments

Property Partner leads the industry in the steps taken to safeguard client investments.  

1. Investment structure

Each investment is structured through a Special Purpose Vehicle (SPV) that means your investments are ring-fenced from the assets and liabilities of Property Partner, as well as any other property investments on the platform. The client assets of the SPVs cannot be accessed by Property Partner or Property Partner's creditors. The nominee structure through which clients hold shares in the SPVs, means there is no risk of clients losing their shares.

2. Regulation

The Financial Conduct Authority (FCA) authorises and regulates Property Partner. Its explicit aims include protecting consumers and upholding the integrity of the market. The FCA requires us to maintain a specified level of regulatory capital to help absorb routine losses, meet any redress claims made against us, and meet the costs of an orderly wind-down. Our FCA reference number is 613499 and our registration details can be found on the FCA’s Financial Services Register. 

3. Independent auditors

BDO LLP performs an annual audit of Property Partner’s statutory financial accounts and Buzzacott LLP undertakes an audit of Property Partner’s client assets and client money processes (CASS) the results of which are reported to the FCA annually.

4. Financial Services Compensation Scheme

The FSCS protects the funds in your account. Funds in your account that are not invested in properties or development loans are held on trust in a segregated client money account at Barclays Bank. This is a separate bank account that is ring-fenced from the monies of Property Partner. In the event that you are unable to recover your uninvested funds from Property Partner, you are also protected by the FSCS, up to a limit of £85,000 .

5. PwC Managed Sale

In the unlikely event that Property Partner was facing financial difficulty and the decision was taken to wind down the platform, PricewaterhouseCoopers LLP has been pre-engaged to manage the sale of the property portfolio and return of capital to our clients. Under the pre-agreed terms of the engagement, PwC’s primary objective is to maximise the return to clients from the property portfolio.

PwC managed sale of the property portfolio

PwC is the largest restructuring business in the UK. Their Real Estate Deals Business employs over 100 staff focusing on Restructuring, Corporate Finance, Real Estate Advisory and Financial Due Diligence. 

PwC’s team is required to act in the interests of Property Partner’s clients rather than in the interests of Property Partner’s shareholders or creditors. PwC has been engaged to maximise the return to clients of the property SPV’s and will aim to achieve this by maximising the sale price of individual property assets. It is expected that the majority of sales would be concluded and client monies returned within a 12-month period. 

PwC’s appointment will see them assume responsibility for overseeing ongoing client communications, property management, property disposals and distribution of net proceeds to clients. 

The following functions will cease in the event that PwC is engaged:

1. Trading on the Resale Market. The ability to ensure complete, accurate and fair disclosure of price-sensitive information to all clients is not practical while the portfolio is being marketed for sale; and
2. Payment of monthly dividends. While the disposal process is ongoing, rental income will accumulate in the bank accounts of each SPV (rather than being paid monthly as dividends) and be included in the final distribution of proceeds to clients. 

PwC’s costs are divided into 2 categories:

1. Fixed cost of 12-month appointment – includes overseeing property management, property disposals and returning proceeds to clients; this cost will be covered by Property Partner directly and is accounted for in Property Partner’s regulatory capital requirements; and
2. Success-based fees for values achieved on property disposals – the fundamental objective of PwC’s engagement is that their interests are aligned with those of our clients. PwC will earn a success-based fee of between 0.0% and 3%, dependent on sale price achieved versus an independent RICS valuation, deducted from sale proceeds before distribution to clients (a straight-line scale applies between these points):
• Sold at 20% (or more) below Market Value 0% of gross sale proceeds 
•  Sold at 10% below Market Value 1.0% of gross sales proceeds 
• Sold at 5% below Market Value 1.5% of gross sale proceeds 
•  Sold at Market Value 2.0% of gross sale proceeds 
•  Sold at 5% above Market Value 2.5% of gross sale proceeds 
•  Sold at 10% (or more) above Market Value 3.0% of gross sale proceeds

All information correct as of 30 November 2022.