Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.
Risk information

Risk summary for investments in speculative illiquid securities which are arranged by a firm by way of an online platform.

 

Estimated reading time: 2 min

 

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be very complex and high risk.

 

What are the key risks?

 

  1. You could lose all the money you invest
    • By investing into a real estate project through Shojin you will be investing in a Bond instrument issued by Special Purpose Vehicles (SPV’s) which provide a funding facility for the purpose of real estate development. If the project fails, Investors can lose some or all of the money they invested.
    • Advertised rates of return aren’t guaranteed. This is not a savings account. If the project doesn’t pay the SPV back as agreed, you could earn less money than expected or nothing at all. A higher advertised rate of return means a higher project risk with an increased probability of losing your money.
    • Due Diligence and project oversight is carried out by the platform on each Shojin project that you are investing into to assess how well they are expected to perform. However, you should always also do your own research before investing.
    • These investments are sometimes held in an Innovative Finance ISA (IFISA). While any potential gains from your investment will be tax free, you can still lose all your money. An IFISA does not reduce the risk of the investment or protect you from losses.

  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.

  3. You are unlikely to get your money back quickly
    • This type of property investment could face delays that can delay payments. These investments could also fail altogether and be unable to repay investors their money.
    • You have the opportunity to sell your investment early through the secondary market but there is no guarantee you will be able to find someone willing to buy.

  4. This is a complex investment
    • This investment has a complex structure to ensure the interest of investors is protected. Investments are made into each designated project SPV and are ringfenced from other project SPV's to ensure full transparency of each investment made.
    • You may wish to get financial advice to understand how the structure works before deciding to invest.

  5. Don’t put all your eggs in one basket

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

For further information about minibonds, visit the FCA’s website here.

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Our company
Shojin is an FCA-regulated fractional investing platform enabling global investors to build their wealth from UK-based real estate investment opportunities.
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Learn more
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About us
Our mission, vision and purpose
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Team
We're an experienced team of real estate and investment professionals
 
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Careers
Take your career to the next level
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Partnerships
Partner with us to increase access to real estate investing

Borrow - Products - Whole Loans

A one stop solution for experienced borrowers

Shojin will provide a combination of senior and junior debt to fund the bulk of the funding required to acquire an asset, refinance a recently completed scheme, or fund a development.

What is a whole loan?

Your complete funding solution.

By combining products, we can provide facilities up to 80% LTV, or 75% LTGDV/95% LTC in the form of a whole loan solution for any of the following:

  • Acquiring / refinancing existing income producing assets
  • Conversion / refurbishment of an existing property
  • Development
  • Finish and exit loans
  • Pre-stabilisation
  • Post-stabilisation

 

Risk-factors---location

Our whole loan funding criteria

Minimum Facility £5,000,000
Maximum Facility £50,000,000
Minimum Period 12-months
Maximum Period 24-months
Maximum LTGDV 75%
Maximum LTC 95%
Use class Residential-led, PRS, PBSA
Location Urban and suburban areas with strong communications
Planning Granted
Minimum profit on cost 20% (Post finance)
Standard security Including but not limited to: First charge, PG, debenture over SPV.

How does a whole loan work?

Fund up to 95% of project costs

While historically Shojin specialised in providing junior finance, we now offer full development financing for mid-market opportunities ranging in value between £5m - £100m. When combining junior and senior debt, we can fund up to 95% of project costs, allowing you to focus on scaling your business or taking on larger schemes.

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Apply for funding
Our team of experts will review your proposal and determine whether it fits Shojin or our preferred lenders criteria. Once approved, we will submit an indicative offer letter. Upon acceptance and payment of the commitment fee, we will undertake due diligence, instruct a valuer and project monitoring surveyor as well as engage with solicitors.
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Draw down
Upon receipt of all the required reports and completing all internal checks, legal documents will be signed and funds released within 5 business days.
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Repayment
Once the scheme concludes, the loan will be repaid through an agreed exit strategy which can include unit sales or refinancing.

FAQs

If you would like to find out more about our flexible funding solutions, please get in touch with a member of the team. 
Contact us
What is the minimum/maximum ticket size? caret-down-light
We provide between £5,00,000 - £50,000,000 per transaction.
What are your whole loan product parameters? caret-down-light
Our whole loans go up to 70% LTGDV and a maximum LTS of 95%. We lend to residential-led, PRS and PBSA schemes in urban and suburban locations with planning permission granted.
Do you take any security? caret-down-light
As standard, all whole loans require a first legal charge, personal guarantee and a debenture over the borrowing SPV. Additional security may be required on a case by case basis.
What are your typical terms? caret-down-light
Our typical terms last between 12 - 24 months.

Go further with Shojin

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More opportunity
No management fees. Smaller sums to take part. Lowered barriers for access.
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Shared risk
Shojin puts own funds into projects. We share in the risk and rewards together
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Knowledge
We use our thorough due diligence and expertise to ensure the best outcome – and you’re not left out the loop.
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Wealth
You get paid out before we do. You’re more likely to gain higher returns than traditional, inflexible investing routes.