Risk Disclosure Statement – Slice Realty

Investing in opportunities listed on the Slice Realty platform involves risks. Before participating in any offering, users should carefully assess their financial capacity, investment objectives, and risk tolerance. The information below highlights key risks associated with fractional real estate investments. This list is not exhaustive, and additional risks may exist based on market conditions, regulatory changes, or the specific nature of an opportunity.

 

Investors should be prepared for limited liquidity, potential delays in exit, and the possibility of partial or total loss of capital. Units or securities issued by the SPV holding the underlying property are not publicly traded, and no active secondary market exists.

 

Investment decisions should be made only after reviewing all relevant documents for the specific opportunity and conducting independent analysis, including consulting personal legal, tax, and financial advisers.

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Key Risk Considerations

1. Reliability of Market Data and Forecasts

Any market data, projections, or industry insights presented in opportunity documents are based on information believed to be reliable. However, such data is often derived from publicly available reports or external research, which may contain inaccuracies. Forecasts are inherently uncertain, and actual outcomes may differ significantly from estimates.

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2. Forward-Looking Assumptions

Performance expectations rely on multiple assumptions, including economic trends, tenant stability, real estate valuations, and broader market conditions. Unexpected events such as regulatory changes, shifts in the Indian economy, or delays in property sale may materially affect projected outcomes. Forward-looking statements are not guarantees of future performance.

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3. Real Estate-Specific Risks

Real estate investments are subject to risks such as:

• Fluctuations in property values

• Changes in rental demand

• Tenant vacancies or defaults

• Maintenance, repair, and operational expenses

• Local market cycles that may impact appreciation or yield

Adverse conditions may reduce returns or result in capital loss.

 

4. Use of Leverage

While current Slice Realty opportunities may not employ leverage, future offerings may utilise debt financing. Leverage amplifies both potential returns and potential losses.

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5. Long-Term Nature of Investment

Fractional real estate investments are designed to be held for multi-year durations. Although each opportunity may specify a minimum lock-in period, achieving optimal returns generally requires staying invested until the planned exit timeline. Early exit options may be limited or unavailable.

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6. Limited Liquidity / No Public Market

Units or securities issued by the SPV are not listed on stock exchanges.
Selling your units depends on finding a buyer through a private transaction or secondary facilitation (if provided). Liquidity is not guaranteed, and sale pricing may differ from projected values. Investors who require near-term liquidity should not participate.

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7. Minority Ownership / Limited Control

Investors typically hold a minority stake in the SPV and do not exercise managerial control. Decisions relating to operations, financing, leasing, and exit are generally made collectively or by the asset manager under the governing agreements. Investors may not be able to influence certain strategic decisions.

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8. Macroeconomic & Market Conditions

Broader economic factors such as inflation, interest rate movements, credit availability, currency fluctuations, geopolitical developments, and changes in government policy can affect property values, rental growth, and exit conditions.

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9. Regulatory Changes

Changes in Indian real estate, tax, company law, or investment regulations may impact the operations of the SPV, property valuation, holding structure, or expected returns. Regulatory uncertainty can create additional investment risk.

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10. Performance Fee Influence

Where applicable, performance-linked fees may incentivize asset managers to pursue strategies aimed at higher returns, which may also involve higher risk. Investors should review fee structures carefully before investing.

 

11. Dependence on Asset Manager

The performance of the investment depends significantly on the expertise and operational capabilities of the appointed asset manager, including accounting, compliance, and administrative functions. While the asset manager endeavours to act prudently, limitations of liability and the involvement of third-party service providers can influence outcomes.

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12. Operational & System-Related Risks

Asset management involves reliance on internal systems, technology platforms, and external service providers. Operational failures, technology disruptions, cyber-security incidents, or human errors could affect transaction processing, reporting accuracy, or investor communication.

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13. Professional Advice Requirement

Slice Realty, its affiliates, and asset managers do not provide personalised investment, tax, or legal advice. Investors must rely on their own due diligence and consult qualified advisers to determine suitability. All investment decisions are the sole responsibility of the investor.

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14. Impact of Natural or Unforeseen Events

Events such as pandemics, natural disasters, fires, earthquakes, floods, acts of terrorism, war, or other emergencies can disrupt economic activity and negatively affect real estate markets, property operations, or exit timelines.

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Final Note

The risks listed above are intended to provide a general understanding of the types of uncertainties associated with fractional real estate investments. Investors should read all opportunity-related documents fully and ensure they understand the terms, structure, and risk profile before subscribing. Participating in any opportunity through Slice Realty implies that the investor has evaluated the relevant risks and is financially capable of bearing potential losses.