Bambucorn Ltd (“Bambucorn”) holds a restricted Innovation Testing Licence issued by the Dubai Financial Services Authority (“DFSA”).
Investment in property is speculative as the market value of the property can fall rental income is not guaranteed. This my lead to investors losing all or part of their money and/or experiencing a delay in getting paid.
Investors shall not own the property outright, rather they shall be awarded shares (in the form of tokens) of a legal entity that shall hold legal title to the property.
Although the platform intends to establish a secondary trading facility for the tokens issued on the platform, there is no guarantee that it may do so, and investors’ interest in the SPV is likely to remain an ‘illiquid’ investment. That is, it may be difficult to sell the interest because of a lack of investors willing to buy such an interest. Hence, the investor must be prepared to commit to investing for the full investment period.
Furthermore, due to the inherent illiquid nature of real-estate investments, it may be difficult to sell the property at the end of the investment period (or at all), resulting in the investor experiencing a delay in receiving their capital or the property being sold at a loss.
In some cases, there may be government restrictions on the sale of a property to foreign owners, which may restrict the range of potential buyers.
If for any reason Bambucorn ceases to carry on its business, notwithstanding the exit plan in place, investors may lose their money, incur costs or experience delays in being paid.
The use of credit or borrowed monies to invest or on the platform creates greater risk. For example, even if the Investment declines in value, the investor will still need to meet their repayment obligations.