Updates to Investment Documents - Effective 5 August 2019

1. Updated Investor Terms & Conditions

New Investor Terms & Conditions - come into effect on 5 August 2019.

We’ve made some changes to our Investor Terms & Conditions.

The key changes are summarised below, and we encourage you to review the full, updated Investor Terms & Conditions here.

• Update to our investment products: the terms have been updated to better reflect the products we offer today. We have included reference to our development loan investments and different property asset classes, as well as removing outdated descriptions of product offerings.
• Fee structure: the terms have been updated to include reference to Property Partner’s new fee structure, including the introduction of an assets under management (AUM) fee and an account fee. A detailed summary of our new fee structure can be found here.
• Resale Market: since January 2018, Property Partner’s Resale Market has been authorised and regulated by the FCA as a multilateral trading facility. Our terms have been updated to better reflect our Resale Market status. 
• Readability: while still a legal document, we’ve done our best to make the terms clearer and easier to understand by including subheadings and shorter, more concise explanations of our product offerings and the operations of our platform.

What do I need to do?

The updated Investor Terms & Conditions will apply from 5 August 2019. Please review them carefully.

You will be deemed to have accepted these new terms by continuing to use our platform on and after 5 August 2019.

2. Updated Management Services Agreement

New Management Services Agreement - comes into effect on 5 August 2019.

We’ve made some changes to our Management Services Agreement (MSA). This is an agreement that is entered into between Property Partner and each property SPV (the template of which is stored in the ‘Investment Docs’ section accessible via your account Dashboard) to govern the property management and other services undertaken by Property Partner on behalf of each SPV.

The key changes are summarised below, and we encourage you to review the full, updated MSA here.

• SPV central fund: the MSA notes that all property SPVs will contribute 1% of their purchase price to a ring-fenced central fund.  When an individual property experiences a shortfall, this will be covered by the central fund extending a short-term, interest-free loan to the SPV.  To ensure that “strong” properties are not subsidising properties with management issues, we will then reduce the dividend of the borrowing SPV to create the surplus required to repay the loan over a reasonable period e.g. 6-12 months.  The central fund benefits investors, as long-term property management decisions should not be determined solely by the immediate availability of cash within a single property SPV. It also avoids the severe volatility that would result if we were to suspend dividends every time an unexpected bill was received.

• Assets under management (AUM) Fee: the MSA has been updated to note that Property Partner charges each SPV an AUM fee of 1.2% per annum based on the latest value of an SPV’s shares determined by an independent chartered surveyor in respect of all property equity investments held by an investor. Please click here for more information about our fees. 

• Services: we have updated the schedule to the MSA to better reflect the full range of services undertaken by Property Partner on behalf of the property SPVs. Services include property management, corporate governance, accounting & tax and sales & marketing.

What do I need to do?

There is nothing for you, as an investor, to do. The MSA is entered into between Property Partner and each SPV. The updated MSA will govern the management services relationship between these parties from 5 August 2019.