Risk disclosure

UAE commercial property prices move with interest rates, supply, occupier demand and the wider economy. An independent valuation is an opinion at a point in time; the price achieved on an eventual sale may be materially lower. NAV can fall between quarterly revaluations.

Distributions depend on rent being paid. A tenant may default, renegotiate, exercise a break clause or vacate at lease end. Re-letting takes time and may be at a lower rent. During a void, distributions may be reduced or suspended entirely, and the reserve fund may be insufficient to bridge it.

This is a long-term, illiquid investment. The secondary market depends on another verified investor wanting your position at an acceptable price; there may be no buyer, and a sale may take weeks or not complete at all. Do not invest money you may need at short notice.

Each SPV holds a single building, frequently with a single tenant, in one city. There is no diversification within a holding. One asset's problems are borne entirely by its own shareholders.

You own shares in an SPV, not the deed personally, and you cannot direct the property individually. Decisions including a sale are taken by shareholder vote — a 75% majority by value can bind you to an outcome you did not choose. Changes to UAE property, corporate or regulatory rules may affect the structure or its costs.

Buildings need capital works. Service charges, district cooling, insurance premiums and statutory fees can rise faster than rent, compressing net yield. Defects may emerge that diligence did not detect, and insurance may not cover every loss.

Assets and distributions are denominated in AED. If your home currency is not pegged to the dirham, exchange movements will affect your returns. The UAE does not levy personal income tax on these distributions, but your own jurisdiction may tax foreign income or gains. Tax treatment can change. Take independent advice.

Strata administers the SPVs and the platform. Were Strata to cease operating, your shareholding would remain intact and the SPV would continue to hold the property, but administration, reporting and secondary-market access could be interrupted while an alternative administrator is appointed.