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Student Co-op Homes

Student Co-op Homes Shares

£50/£250 minimum

Risk factors

All investment and commercial activities carry risk, and investors should consider whether Student Co-op Homes is a suitable investment for them in light of their own personal circumstances.

You should remember that your investment is primarily for the purpose of supporting the society rather than making an investment return. As a Society, the maximum return offered to investors will always be limited.

This offer is not covered by the Financial Services Compensation Scheme.

General investment risks

It is important that you understand the following general points about holding community shares in Student Co-op Homes:

  • As a Registered Society under the Co-operatives and Community Benefit Societies Act 2014, Student Co-op Homes is registered with, but not authorised or regulated by, the Financial Conduct Authority. Any money you pay for shares is not safeguarded by any depositor protection or dispute resolution scheme. In particular, you have no right of complaint to the Financial Ombudsman Service, nor any access or entitlement to the Financial Services Compensation Scheme.
  • An investment in community shares is an at-risk investment in a trading business, not a loan or a deposit, and rates of return are not guaranteed. This investment should be considered as a medium to long term investment with a primarily social objective. Your shares may not be readily convertible to cash should you need to withdraw them.
  • As a member and shareholder of Student Co-op Homes you could, if the business is unable to meet its debts or other liabilities, lose some or all of your investment held in shares. However, your liability is limited to the amount that you have paid for your shares. Whilst it is the Society’s intention to pay interest on shares at the rate advertised in this offer, community shares do not enjoy any capital growth.

Failure to secure properties

Existing student housing co-operative groups are already in the process of sourcing properties. SCH consider it unlikely that they will not be able to find suitable properties but even if that did happen, the uninvested funds would be held by us which is not a high risk outcome. Ultimately it could be returned to investors.

Individual student housing co-operatives fail

SCH will provide support to its member co-operatives to ensure they are well run. In the event of a failure, SCH will still own the properties that were leased to the student housing co-op in question, and could either support the formation of a new co-op to take on the lease, or lease them to another operator, or sell them.

Student housing co-operatives default on lease payments

SCH will provide support to its member co-operatives to ensure they are well run. In the event of lease payments not being made, SCH will work with them to regularise the position. Ultimately it will still own the properties that were leased to the student housing co-op in question, placing it in a strong position.

House prices fall

House prices can of course rise and fall over time, but SCH see their investments as being very much for the long-term and consider a long term drop in value to be unlikely. In the event that this were to happen, SCH would still be able to cover loan and share interest payments through the income from lease rental, so envisage they would be able to work through such a situation until prices rose again.

Interest rates rise sharply

Given the number of borrowers who would be impacted by such a rise in rates SCH consider this to be unlikely. They do plan for a moderate increase in rates in their business plan. They will also seek, where practicable and commercially advantageous, to fix rates for a reasonable period. Other mitigations would include raising additional share capital at a more modest rate, and increasing lease rentals over time to cover the higher interest charges.

Offer Closed

As of the 5th February this offer is closed.

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