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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2 min read

Shojin launches joint venture in the UAE

 
Shojin has formed a partnership with Smart Crowd Holding LTD (SmartCrowd), parent company of the first regulated  real estate crowdfunding platform that enables people to grow their wealth by collectively investing in income-generating properties, based in the United Arab Emirates.

The joint ventures mark another milestone for Shojin’s expansion plans as it lowers the barriers to entry for high net worth investors looking to invest in institutional-grade real estate globally, with Australia and South Africa likely to follow. 
 
With this partnership SmartCrowd looks to expand its offering beyond single family homes by securing additional licenses to unlock the asset class further. SmartCrowd is in the process of obtaining a license that will allow them to tap into a mass affluent market to offer development and commercial real estate opportunities.   
 
The new partnership will boost the investment firepower at Shojin’s disposal, as the company originates an increasing number of exciting UK development projects requiring funds. Investors using SmartCrowd’s platform will be able to back Shojin’s UK real estate opportunities, with the goal in the near future for Shojin’s global investor pool to also access projects in the United Arab Emirates in the near future. Shojin recently completed its first overseas investment in Penang, Malaysia, known as the ‘Silicon Valley of the East’, where it raised over £850,000 for a luxury 20-apartment development.
 
Jatin Ondhia, CEO of Shojin, said: “We already know that the online real estate market is set to boom over the coming years, and our partnership with SmartCrowd in the United Arab Emirates is part of ensuring Shojin remains at the forefront. There is a great deal of demand in the Middle Eastern market, both from locals and expats and Dubai’s property sector is going from strength to strength, owing to various measures and regulations aimed at promoting transparency in the real estate space. We look forward to working together towards the common goal of unlocking lucrative real estate opportunities for mass affluent investors and helping to spread wealth globally.”
 
Siddiq Farid Founder & CEO, SmartCrowd, said: “With this partnership we are one step close to realising our vision to unlock the real estate asset class and allow masses to invest beyond the traditional asset classes. We had set out to make alternative investments accessible to the masses so they can construct diversified portfolios like the wealthy. Partnering with firms like Shojin that are regulated and have a strong history and track record allows us to expand our offerings to our investor base in the region. Technology enables us all to think and act beyond our borders.”
 
Shojin is an FCA-regulated online real estate investment platform enabling high net worth investors across the globe to invest in institutional-grade real estate developments and make superior returns. 
 
Primarily focusing on funding UK mid-market residential, PRS (private rented sector), senior, and student accommodation developments, Shojin has a unique model of co-investing into every project and shares profits at the end, creating a perfect alignment of interest with investors.
 
Intelligent investors from over 40 countries are able can simply invest in lucrative real estate investments from as little as £5,000 and enjoy superior risk-adjusted returns. To date, Shojin has raised over £41m across 30 projects. 
 
About SmartCrowd
 
SmartCrowd looks to offer investors a better way to invest in Real Estate by making it accessible to the masses through its software, education, and community. Founded in 2018, SmartCrowd, secured the first license to operate a regulated (by the Dubai Financial Services Authority) digital platform for real estate investments in the MENA region in 2019. SmartCrowd is expanding its license offering within the United Arab Emirates and the region to offer more opportunities to its growing investor base. 
 
 
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