Following the revisions to the fire safety regulations as a result of the tragic Grenfell Tower Fire, we were advised that two property investments on our platform no longer met these regulations: Premier House, Edgware and The Picture Works, Nottingham.
Due to the level of uncertainty around the cost of the works required to comply with the new regulations, who will bear these costs, and the potential impact on an investor’s assessment of the value of the property, we decided to suspend trading and dividend payments on both investments in June 2018.
Since the suspensions we have issued regular updates to investors in these properties. You can view each update issued below. Both properties were revalued 31 March 2019, and you can view the recent valuations on the respective property detail pages.
We feel there is now enough information available about the cost of the remedial works required on each of the properties for the trading suspensions to be lifted when the Resale Market opens at 11am on 10 April 2019. Due to the significant changes to the valuations, all historic bids and offers on the properties have been cancelled.
A comprehensive and professional due diligence process is at the heart of every property acquisition we make, and both properties were compliant with fire safety regulations at the time they were acquired. However, ultimately, the best planned and managed property investments are not risk free. Premier House, Edgware and The Picture Works, Nottingham represent less than 2% of the value of properties on our platform. These unexpected events demonstrate why diversification across a portfolio of properties is so important.
Premier House, Edgware:
1) See update 7 June 2018 here
2) See update 28 June 2018 here
3) See update 31 July 2018 here
4) See update 27 September 2018 here
5) See update 20 December 2018 here
6) See most recent update 5 April 2019 here
The Picture Works, Nottingham
1) See update 28 June 2018 here
2) See update 31 July 2018 here
3) See update 27 September 2018 here
4) See update 20 December 2018 here
5) See most recent update 5 April 2019 here
To go back to the CEO update click here.
Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however, the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Past performance is not a reliable indicator of future performance. Forecasts, if stated, are not a reliable indicator of future performance. Interest and capital returned may be lower than expected. Gross rent, dividends, and capital growth may be lower than estimated. 5 yearly exit protection, exit on platform, exit in line with a specific investment case or fund strategy, subject to price and demand. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary. Financial promotion by London House Exchange Limited (No. 8820870); authorised and regulated by the Financial Conduct Authority (No. 613499). See Key Risks for further information.