KEY RISKS, REGULATORY DISCLOSURE AND RISK WARNINGS

WeProperties Technologies Limited ("WeProperties") is fully regulated by the Dubai Financial Services Authority ("DFSA")

RISK WARNING: Investments in property and unlisted shares carry a risk. Your capital may be at risk, and you may not receive the anticipated returns. You may lose all or part of your money that you invest via our Platform. You may experience delays in being paid a return on all or part of the money you invest via our Platform.

No direct Ownership of Property

Investors will not own the property; rather the investor will have an interest in another legal entity (a Special Purpose Vehicle SPV) that owns the property. As the investor’s interest in that entity is not listed or traded, it may be difficult to sell the interest because of a lack of investors willing to buy such an interest. So, the investor must be prepared to commit to investing for the full investment period.

Investment Risks

Investment in real estate is speculative, the market value of property can fall, and rental income is not guaranteed;

WeProperties does not remove any of the risks that you may experience should you acquire a property directly and outright (i.e., without a mortgage). Some additional risks are introduced by virtue of shared ownership and timing of your exit.

The real estate market can experience downturn effecting your property valuation. Forecasts and past performance are not a reliable indicator of future performance.

If for any reason the operator ceases to carry on its business, investors may lose their capital money, incur costs or experience delays in the investment being wound up.

Advice

WeProperties does not provide any investment advice and no assessment is made to determine if an investment is suitable for investors. All information is provided to help you make your own informed decisions. You must rely on your own due diligence before investing, if in doubt, please seek the advice of an independent financial adviser.

Variable Income

Whilst WeProperties provides gross rental income estimates based on information from third parties, these are not guaranteed. It may be that lower rents are secured. Furthermore, rental income could cease completely for certain periods. In the event of a tenant failing to meet its obligations to the owner of the property, investors will experience a fall in the cash receipts and cash available for distribution to them. From time to time, vacancies can be expected to arise in the operation of real estate assets. In some cases, sizable vacancies may mean there is less cash available for distribution to investors.

The value of your WeProperties investment can go down as well as up and historic performance is not a guide to future performance. Achievement of rental and capital returns will depend on a range of factors including the property asset as well as the wider economy. A fall in the value of your investment may be due to a number of reasons, such as a fall in the underlying value of the property or a problem with the property that will need to be funded from future rental income. Economic, political, and legal issues can affect values as they would other asset classes. Any future downturn in the real estate market could materially adversely affect the value and income generated from a property investment. Investors are to individually assess and establish their level of comfort with this risk from the outset.

Liquidity

As real estate is an asset that cannot always be easily sold, it may be difficult to sell the property at the end of the investment term, resulting in a delay in investors receiving their capital or in the property being sold at a loss.

Once the transfer facility is operational, you may be able to advertise your investment for sale to other WeProperties users at any point. However, there may not be anyone willing to buy your investment at a price that you deem reasonable (or buy it at all). In that event you will be required to wait until the end of the investment term for an exit. Even at this point, the timing and ability to exit will depend on completion of a transaction to sell the underlying property. This transaction could take several months.

Client Money

Clients of WeProperties are subject to the protection conferred by the DFSA’s Client Money Provisions.

Client Money will be held separate from Money belonging to WeProperties; and in the event of the Authorised Firm’s insolvency, winding up or other Distribution Event stipulated by the DFSA, the Client’s Money will be subject to the DFSA’s Client Money Distribution Rules. Interest on Client Money is not payable to you as a Client of WeProperties.

Custodian Account

Client Money is held by WeProperties in a segregated Client Account with First Abu Dhabi Bank PJSC (FAB) and are fully regulated to hold client money for the purpose of investment. Whilst First Abu Dhabi Bank PJSC (FAB) is accountable to WeProperties for the safe keeping of its Client Money, First Abu Dhabi Bank PJSC (FAB) does not have a relationship with WeProperties’s clients directly. Therefore, WeProperties is wholly accountable for our investors “Client Money”. WeProperties has undertaken due diligence of Banks’s custodial systems and controls and deemed fit and proper to hold Client Money on WeProperties’s behalf.

Government Restrictions

Investments may be subject to government restrictions that can impact their availability, liquidity, and value. Such restrictions may arise from changes in laws, regulations, or policies imposed by governmental authorities, which can affect market conditions and investment performance. 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.