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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1 min read

Luxury London rooftop development repays investors

Over £1.6m has been returned to Shojin investors following the successful completion of the Oakley Square development in Camden, London.

 

This project was launched in July 2023, with £1.5m in funding raised through the Shojin digital platform.

Investors were repaid over three instalments, each returning principal and interest, at a rate of 12% per annum (7% + BoE base rate).

 

Shojin and LINUS partnership

 

This project was a collaboration between Shojin and LINUS Digital Finance, a Berlin-based real estate investment platform focussing on institutional-quality assets. LINUS originated and managed the project, with Shojin offering it to investors through the Shojin digital platform.

 

Project highlights

 

Investors were given the chance to participate in a senior loan for a rooftop development of 8 residential units, with first charge security. Three tranches of £500k were released and funded within 6-weeks, with 51 investors participating.

 

The development is in Camden, Central London, a high-value residential area with extensive dining and shopping options and great transport links across the capital.

 

The developers, Echlin, are an award-winning practice of architects, interior designers and development managers. Since 2011, they have a track record of completed projects with a total GDV over £200m. Echlin specialise in this kind of development, partnering with freeholders of existing buildings to add value through additional luxury units.

 

This project was featured in The Times as a leading airspace development that “breathed new life into [residents’] ageing flats”. Wallpaper also had praise for the extension, describing it as "[a] rare treat of a combination - a slice of minimalist architecture and residential calm, while set within one of London's most popular corners."

 

CBRE Oakley Square

 

The investment

 

With construction approximately 75% complete at launch, investors were taking on relatively low risk, with most of the anticipated 9-month loan term covering the sales period. Practical completion was delayed slightly, achieving sign off in Q4 2023 before the units were fully completed in April 2024.

 

The sales process went to plan, with units marketed exclusively to overseas buyers. Several units were sold off plan, allowing for the following early redemptions:

 

  • January 2024: 22% capital and all interest accrued to January 2024
  • June 2024: 40% capital and all interest accrued between January and June 2024

The final units were sold in H1 2024, allowing full repayment on 1st August 2024, approximately 12-months after the first tranche was drawn down and slightly later than originally planned, although investors continued accruing interest during this extension.

 

 
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