VH | OPCI, risks
16640
page-template,page-template-full_width,page-template-full_width-php,page,page-id-16640,page-child,parent-pageid-16544,ajax_fade,page_not_loaded,,qode-theme-ver-12.1,qode-theme-bridge,wpb-js-composer js-comp-ver-5.3,vc_responsive
 

OPCI, risks

Each OPCI prospectus will provide investors with an overview of the attached risks. When it comes to properties or real-estate securities, they are mainly of four types:

Risks
linked to properties

These are mainly twofold:

  • Risk on capital: risk of loss of all, or a part, of the equity, due to changes in the economic environment, real estate market trends, or specific features of each real estate asset held by the OPCI.
  • Risk on the return: the rental income may fall significantly below forecast, or be completely erased for a period of time that could last until the maturity of the OPCI. This risk is also related to changes in the economic environment, real estate market trends, or to specific features of each real estate asset held by the OPCI.
Risks
linked to the investment strategy

Those are mainly:

risks related to the investment strategy, asset allocation choices, and targeted assets

 

risks linked to financial leverage

Liquidity risks

These are essentially risks that market conditions make it impossible to be sold in reasonable conditions within the planned time frame, and risks to bear a significant discount on a firesale.

Risks linked to services
provided by suppliers
and sub-contractors

As far as OPCI bank deposits are concerned, the risk is essentially a bank’s risk of default beyond the legal deposit guarantees. As regards the financial instruments of the OPCI, the risks are mainly those related to the market risk and the liquidity risk, inherent to any listed or traded securities.

As of January 2016, this last risk is remote as Victoires Haussmann has elected to keep such instruments out of the scope of its license.

Powered by WishList Member - Membership Software