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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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

Borrow - Why us

Next level funding.

We support borrowers at every step of the journey, from acquisition through to development and exit.

Tailored funding

We specialise in funding mid-market opportunities

We support UK based developers who operate within the living sector and undertake schemes ranging between £10m - £70m in value. Due to the level of capital requirements in this part of the market, junior finance is often required to take on new opportunities as equity is locked in existing assets.

 

Despite this, junior finance is not readily available when undertaking schemes of this size. We're here to change that and provide simple, accessible solutions that enable you to scale.

 

Shojin can lend up to 80% LTGDV or 97% LTC, and can assist with releasing existing equity or funding new schemes.

 

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Midmarket
We support professional developers with a proven track record within the mid-market space. Junior finance is often required to expand by increasing the size or number of schemes undertaken.
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Residential focus
We focus on unlocking value within the living sectors. Our specialisms include Residential, PRS, PBSA, Retirement and Assisted Living. Other use classes are supported on a case by case basis.
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Creative solutions
We have an innate understanding of the market which allows us to think outside the box and stay receptive to new ideas.
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Get up to 97% funding
When combined with senior debt, we can fund up to 97% of project costs, allowing you focus on scaling or taking on larger schemes.
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Built on partnerships
We partner with you throughout the project lifecycle to tackle any challenges that may arise and enable a successful delivery.
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In-house expertise
Starting as developers ourselves, we have the in-house skill set and financial expertise to help build the perfect partnership.
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Proven track record
Since inception, we have provided £70m of junior finance supporting £615m of development value.