Risk warning:

The terms in this document – in particular those beginning with a capital letter – have the same meaning as the terms defined in the General Terms and Conditions.

The User alone assumes the risks associated with any subscription. By subscribing, the User expressly declares that he/she is aware that he/she is participating in the raising of funds for a Project, which involves a certain number of risks. SIPA crowd immo does not verify whether the subscription made by the User is relevant or appropriate to the User’s experience, knowledge, financial situation or investment objectives.

Users considering subscribing to a Project must take into account the risk factors mentioned below. Each risk factor may have a negative impact on the Project, the activity and financial situation of the Project (including financial income) and the investment made by the User.

The list of risk factors below is not exhaustive. SIPA crowd immo does not provide any tax, financial or legal advice to the User. With regard to the tax regulations that apply in Switzerland, a natural person carrying out real estate transactions may be considered as carrying out an independent gainful activity, which implies in particular a different tax treatment. SIPA crowd immo expressly recommends that Users consult a financial and/or tax or legal advisor in their tax jurisdiction before subscribing to a Project.

In addition, SIPA crowd immo expressly reserves the risks described in any documentation or other risk factors relating specifically to the Project in question.

All the Projects mentioned on the Website relate to real estate and therefore involve risks in connection with an investment in real estate (see the non-exhaustive list set out in point B.1 below), while some specific Projects are structured using an investment instrument, which may involve additional risks (see the non-exhaustive list set out in point B.2 below). Insofar as the Website and some of the Projects are distributed over the Internet, specific risks may also exist when using the Website and communicating with SIPA crowd immo by electronic means (see the non-exhaustive list in point B.3 below).

1. General

In the case of existing buildings, the User is exposed to the risks associated with an investment in real estate such as the attractiveness of the location, the drop in rental income, the fluctuation of the real estate market, the fluctuations in interest rates interest, at the local, Swiss and international levels as well as changes in Swiss regulations and taxation.

2. Rental income

The User’s periodic income on existing properties consists mainly of rental income. These may decrease in the future, depending on several factors such as the vacancy rate, non-payment of rent by a tenant, invalidity of the lease contract (or specific clauses), decrease in rent due to changes in supply and demand, decrease in interest rate, requests for rent reduction or other factors. The non-payment by one or more tenants of the rent provided for in the lease contract for one or more months as well as the vacancy rate may have an impact on the User’s ability to pay interest and/or repay a mortgage to the bank (or other mortgage provider). Wording used in lease agreements – including that relating to rent escalation – may be subject to interpretation such that the delegated property manager’s ability to enforce the claim of rental income (or part thereof last) under the lease contract may be hindered.

3. Valuation of the property

The valuation of a property depends on many factors and is carried out by assumption on the basis of past values ​​and performance as well as market observations which are subject in particular to subjectivity in their valuation. Therefore, the valuation of a property can be changed. The valuation is made on a specific date while the sale price of the property is set according to supply and demand at the time of a proposed sale. Therefore, it must be taken into account that the estimated value on a specific date does not correspond to the sale price of the property.

4. Force majeure

Force majeure events or natural disasters, acts of war, terrorism or the like can negatively impact the value of an existing property. In the case of an existing building, these events may impact the User’s ability to pay interest and/or repay a mortgage to the Bank.

5. Environmental Protection Law

Swiss law provides for a specific regime on polluted sites according to the Law on the Protection of the Environment of October 7, 1983, and its implementing ordinance on polluted sites of August 26, 1998, which provides that specific measures be implemented. in place, in the presence of a polluted site. In such circumstances, capital outlays may be required, which may impact the performance and creditworthiness of a Project and the ability to pay interest and/or repay principal to Users.

6. Renovations

Renovations or other repairs to the property may impact rental income and the User’s ability to pay interest and/or repay the mortgage to the Bank.

7. Maintenance and repairs

Regular maintenance, repair and renovation costs may occur and impact the return on an investment. Specific repairs and renovations may require large investments, which would delay returns on investment. It is not excluded that, depending on the type of repair or renovation, no income (i.e. return) will be distributed to the User. Once he owns the property, the User bears the financial risks associated with its acquisition and may be required to pay these maintenance and repair works, as well as other invoices relating to the property.

8. Legislative developments and reclassification

In Switzerland, real estate investment is governed by federal, cantonal and municipal laws and regulations regarding rental, land planning, construction, environment, purchase, taxation and the purchase of a property. real estate by persons domiciled abroad (Federal Law of 16 December 1983 on the acquisition of real estate by persons abroad), which may change in the future.

In particular, the State may have to modify its territorial planning, which may have an impact on the value of the property. Real estate may also be subject to forced expropriation if specific conditions are met.

Investing in real estate through the acquisition of shares in a limited company involves certain risks mentioned in section B.1 above. In addition, the User is exposed to the risks described below.

1. Credit and default risks

The company whose shares the user has acquired may experience financial difficulties, including bankruptcy proceedings, rendering it unable to pay dividends or interest.
The User may lose all his investment.

2. Limited liquidity

Unlisted company shares are markets with reduced liquidity. Company shares are not subject to an organized secondary market. Therefore, there is no guarantee that the User who has acquired shares will find an investor interested in purchasing one or more of these shares.

3. Market volatility

The price at which company shares can be sold is subject to several factors – such as the volatility of the interest rate or the financial situation of the company, which can impact it negatively.

4. No Warranty

The shares of a company have no collateral or any other kind of guarantee whatsoever, except if this is indicated in the documentation provided. In particular, there is no mortgage or other guarantee on the property in favor of the Users.

1.Internet and accessibility of the Website

There are specific characteristics, constraints and risks associated with the use of the Internet that may result in an inability to access the Website, in particular due to disruption by network operators or Internet service providers. SIPA crowd immo shall not be liable for any damage resulting from such an inability to access the Website.

The use of the Internet may also imply a lack of confidentiality and the User’s attention is drawn to the confidentiality policy which forms an integral part of the General Terms and Conditions of SIPA crowd immo and which explains the manner in which the User’s personal data is processed on the Website.

Our team is at your disposal to discuss the existing risks in more detail.