UK’s leading property investment platform and trading exchange
- £120m of property assets under management
- 90+ properties available for individual investment
- £55m of capital returned to clients through our unique Exchange
- £10m paid out to clients in monthly cash dividends (rental income)
Safeguards for your investments
London House Exchange leads the industry in the steps taken to safeguard client investments.
1. Investment structure
Each investment is structured through a Special Purpose Vehicle (SPV) that means your investments are ring-fenced from the assets and liabilities of London House Exchange, as well as any other property investments on the platform. The client assets of the SPVs cannot be accessed by London House Exchange or London House Exchange's creditors. The nominee structure through which clients hold shares in the SPVs, means there is no risk of clients losing their shares.
The Financial Conduct Authority (FCA) authorises and regulates London House Exchange. Its explicit aims include protecting consumers and upholding the integrity of the market. The FCA requires us to maintain a specified level of regulatory capital to help absorb routine losses, meet any redress claims made against us, and meet the costs of an orderly wind-down. Our FCA reference number is 613499 and our registration details can be found on the FCA’s Financial Services Register.
3. Independent auditors
BDO LLP performs an annual audit of London House Exchange’s statutory financial accounts and Buzzacott LLP undertakes an audit of London House Exchange’s client assets and client money processes (CASS) the results of which are reported to the FCA annually.
4. PricewaterhouseCoopers LLP Managed Sale
In the unlikely event that London House Exchange was facing financial difficulty and the decision was taken to wind down the platform, PricewaterhouseCoopers LLP has been pre-engaged to manage the sale of the property portfolio and return of capital to our clients. Under the pre-agreed terms of the engagement, PwC’s primary objective is to maximise the return to clients from the property portfolio.
PricewaterhouseCoopers LLP managed sale of the property portfolio
PricewaterhouseCoopers LLP (PwC) is the largest restructuring business in the UK. Their Real Estate Deals Business employs over 100 staff focusing on Restructuring, Corporate Finance, Real Estate Advisory and Financial Due Diligence.
PwCs team is required to act in the interests of London House Exchange’s clients rather than in the interests of London House Exchange’s shareholders or creditors. PwC has been engaged to maximise the return to clients of the property SPV’s and will aim to achieve this by maximising the sale price of individual property assets. It is expected that the majority of sales would be concluded and client monies returned within a 12-month period.
PwC’s appointment will see them assume responsibility for overseeing ongoing client communications, property management, property disposals and distribution of net proceeds to clients.
The following functions will cease in the event that PricewaterhouseCoopers LLP is engaged:
- Trading on the Exchange. The ability to ensure complete, accurate and fair disclosure of price-sensitive information to all clients is not practical while the portfolio is being marketed for sale; and
- Payment of monthly dividends. While the disposal process is ongoing, rental income will accumulate in the bank accounts of each SPV (rather than being paid monthly as dividends) and be included in the final distribution of proceeds to clients.
PwC’s costs are divided into 2 categories:
- Fixed cost of 12-month appointment – includes overseeing property management, property disposals and returning proceeds to clients; this cost will be covered by London House Exchange directly and is accounted for in London House Exchange’s regulatory capital requirements; and
- Success-based fees for values achieved on property disposals – the fundamental objective of PwC’s engagement is that their interests are aligned with those of our clients. PwC will earn a success-based fee of between 0.0% and 3%, dependent on sale price achieved versus an independent RICS valuation, deducted from sale proceeds before distribution to clients (a straight-line scale applies between these points):
- Sold at 20% (or more) below Market Value 0% of gross sale proceeds
- Sold at 10% below Market Value 1.0% of gross sales proceeds
- Sold at 5% below Market Value 1.5% of gross sale proceeds
- Sold at Market Value 2.0% of gross sale proceeds
- Sold at 5% above Market Value 2.5% of gross sale proceeds
- Sold at 10% (or more) above Market Value 3.0% of gross sale proceeds
All information correct as of 30 November 2022.
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