1.
Bambucorn provides vetted investment opportunities in real estate that are inaccessible to the public-at-large. By investing in real estate through Bambucorn, investors can:
2.
Please note by investing in a property deal on the Bambucorn platform, you shall be awarded shares of a Special Purpose Vehicle (SPV) that shall hold the legal title to the underlying property, i.e. your name shall be entered into the SPV’s register of shareholders thereby making you an ultimate beneficial owner of the property from a legal perspective. On the platform, these shares that you hold shall be represented by tokens. This has been done to enable the secondary transfer of tokens when Bambucorn establishes a secondary trading facility for the tokens issued on it. (Please note that we intend on establishing a secondary trading facility for tokens issued on the platform in the future. Currently, such a secondary trading facility does not exist).
3.
The tokens will carry the same rights that are associated with the ownership of the shares in the legal entity that you are a shareholder of. For more information, please refer to the Investment Subscription Agreement of the deal that you plan to invest in.
4.
5.
In all cases, any material change in a property’s circumstance shall be listed in this section. We expect that a material change during the offering period would occur very rarely (as the platform would conducted its due diligence prior to listing the offering on the platform) and in the event it does occur during the offering period (not including the cooling-off period), we shall ask you to reconfirm your investment (if you have invested) in the offering.
6.
We have a comprehensive methodology to evaluate each prospective investment. All properties are evaluated on the factors below by our in-house analysts. Furthermore, we have an investment committee that approves all offerings prior to them being listed on the platform. The factors considered include but are not limited to:
Furthermore, all properties are subject to an independent third-party valuation by a regulated real estate valuer, the result of which shall be included within the offering documents.
Bambucorn shall look to list offerings of properties that are residential in nature with the offering size below USD 5 mn.
7.
Bambucorn’s business model entails of charging the seller on the platform a fee. Hence, as an investor of the platform, you shall not be charged any fee at the time of making an investment in a property on the platform. However, as the administrator of the SPV, Bambucorn shall charge a yearly administration fee of approximately 1% of the funds raised on the platform.
8.
As the administrator of the SPV, Bambucorn’s functions would inter alia include:
9.
In simple terms no, we will not be managing the property. However, each property will be managed by an assigned property manager. Upon the completion of the offering, the SPV shall enter into a Services Agreement. As part of the offering documents, the proposed property manager and its compensation shall be disclosed to you.
10.
While we don’t expect you to make further contributions as the rent would cover all costs, in the unlikely scenario that the property is unoccupied, you may be required to invest funds to cover your share of the property’s expenses.
11.
In the unlikely event that Bambucorn, ceases to carry out its operations, the platform shall activate its business cessation plan and shall call a virtual meeting of all investors in a property. In the interim, the property manager shall become the administrator of the SPV you are a shareholder of. In the meeting, Bambucorn shall provide you (the investors) with the names of two administrator candidates (for the SPV) for your consideration. The candidate with the most votes shall be appointed the administrator of the SPV.
Please note that as all tokens issued on the platform are digital representations of the shares of the SPV, the cancelling of the tokens held by you on the platform shall have no effect on your legal status as a shareholder of the SPV.
12.
All property offerings on the platform come with a specified term. At the end of the term, the platform (in its role as the administrator of the SPV) shall call for a (virtual) meeting of all the shareholders of the SPV. In the meeting, the shareholders will be asked to vote on if they want to sell their investment. If the majority of the shareholders respond in the affirmative, the platform (in its role as the administrator of the SPV) shall instruct the property manager to search for buyers for the property. Once, the property manager finds a suitable buyer and the shareholders approve the terms, the property shall be sold, and all shareholders shall receive their share of the value of the property (pro-rata) less any fees and transaction costs.
In the interim, as a shareholder of the SPV, you (along with a specified percentage of shareholders) can call a vote of all shareholders whereby, a majority of the shareholders of the SPV can instruct the platform (in its role as the administrator of the SPV) to search for prospective buyers. Once such a resolution is passed the platform (in its role as the administrator of the SPV) shall instruct the property manager to search for buyers for the property. Once, the property manager finds a suitable buyer and the shareholders approve the terms, the property shall be sold, and all shareholders shall receive their share of the value of the property (pro-rata) less any fees and transaction costs.
13.
The frequency of returns (net rental receipts) shall be disclosed as part of the disclosures to the offering.
14.
In the event a deal does not raise its minimum target level of funding, you shall be refunded your subscription monies net of any transfer and currency fees.
15.
Yes, you can. You can cancel a commitment to invest (free of charge) in a particular deal up to 48 hours after the offering period has ended. Please note that you shall be responsible for bearing any transaction and currency charges affiliated with the transfer of money.
16.
The money is kept in a separate bank account (Client Money Account) and is subject to the Client Money Provisions of the DFSA Rulebook. Please refer to the Conduct of Business (COB) Module for more information. This money is kept separate from the platform’s own money and the platform is required to provide regular reports and commission independent audits on this account, the results of which are shared with the regulator.
17.
Please refer to the relevant sections of the Privacy and Security Policy.
18.
Bambucorn Ltd. has created its own AML program to ensure the Platform is not used for illicit activities including money laundering activities. Some of the highlights of the AML program include but are not limited to:
19.
Professional Client: A Professional Client will not be subject to any investment limits on the platform. A Professional Client who generally has a higher net worth and who has prior experience and understanding of the relevant financial markets. The criteria to be classified as a Professional Client can be found here
Retail Client: A Retail Client will be restricted to investing USD 50,000 on the platform in a calendar year. You will be classified as a Retail Client if you do not meet the criteria to be classified as a Professional Client or if you choose to be classified as a Retail Client. Please note that a Retail Clients are offered a higher level of protection vis-à-vis Professional Clients.
20.
Yes, you can change your client classification at any time by writing to us at compliance@bambucorn.com. Please note that we may request documentary evidence of any representations you make.
21.
Whilst the requirements would change depending on your risk-rating (calculated internally), all Clients would be expected to submit a picture of their passport and their proof of address. Documents accepted as proof of address include:
22.
In order to become an investor on Bambucorn, you will need to pass all AML checks and self-certify yourself as a Professional or Retail. As we have obtained an Innovation Testing Licence from the DFSA, we are only restricted to onboarding UAE residents for the time-being. Once we obtain an unrestricted licence, we shall be able to onboard residents from a majority of the countries across the globe. Get notified of any updates by registering over here