Real Estate APAC

The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested.

The risk factors listed below are not exhaustive.

General Real Estate Risk: The investments will be subject to risks incidental to owning and operating real estate projects, including risks associated with the general economic climate, geographic or market concentration. There is no guarantee in respect of the repayment of principal or the value of investments, and the income derived therefrom may fall as well as rise. Investors therefore may not recoup the original amount invested. In particular, the value of investments may be affected by political and economic news, government policy, changes in technology and business practices, changes in demographics, cultures and populations, natural or human-caused disasters, pandemics, weather and climate patterns, scientific or investigative discoveries, costs and availability of energy, commodities and natural resources. The effects of market risk can be immediate or gradual, short-term or long-term, narrow or broad.

Liquidity Risk: Private real estate, including investments made directly or through corporate or fund structures, is an illiquid asset class. Investors should be warned that there may not be a secondary market for their shares or interest in the fund or partnership. Liquidity risk may arise due to challenges in selling assets quickly, and it may require a substantial length of time to liquidate.

Tenure Risk: Institutional direct real estate investments are typically underwritten with a long holding period and are only suitable for investors who have a long-term investment horizon.

Economic Conditions: The economic cycle and prevailing interest rates will impact the fundamentals of the underlying investments. Economic activity and sentiment also impacts the performance of underlying companies and could have a direct bearing on the ability of companies to keep up with interest and principal repayments.

Risks Associated with Certain Types of Real Estate: In addition to the general real estate risks described above, other factors that may adversely affect the value and successful operation of, and income generated from, certain types of real estate investments includes the following: the physical attributes of a building used to generate income, location of the property , ability of management to provide adequate maintenance and insurance, the types of services or amenities that the property provides, the property's reputation, competition from other real estate investors, the level of mortgage interest rates, presence or construction of competing properties, the quality of tenants and tenant mix and adverse local, regional or national economic conditions. This list is not exhaustive and there could be other factors could have a material adverse effect on the performance of an investment.

This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment nor should it be regarded as investment research. This document has not been reviewed by The Monetary Authority of Singapore (the “MAS”).

HSBC Global Asset Management (Singapore) Limited (“AMSG”) has based this document on information obtained from sources it reasonably believes to be reliable. However, AMSG does not warrant, guarantee or represent, expressly or by implication, the accuracy, validity or completeness of such information. Any views and opinions expressed in this document are subject to change without notice. It does not have regard to the specific investment objectives, financial situation, or needs of any specific person. Investors and potential investors should not make any investment solely based on the information provided in this document and should read the offering documents (including the risk warnings), before investing. Investors should seek advice from an independent financial adviser. Investment involves risk. Past performance and any forecasts on the economy, stock or bond market, or economic trends are not indicative of future performance. The value of investments and income accruing to them, if any, may fall or rise and investor may not get back the original sum invested. Changes in rates of currency exchange may affect significantly the value of the investment.

This document is provided upon request for information only.

In Singapore, this document is issued by AMSG who is licensed by MAS to conduct Fund Management Regulated Activity in Singapore. AMSG is not licensed to carry out asset or fund management activities outside of Singapore.

HSBC Global Asset Management (Singapore) Limited

10 Marina Boulevard, Marina Bay Financial Centre, Tower 2, #48-01, Singapore 018983

Telephone: (65) 6658 2900 Facsimile: (65) 6225 4324

Website: https://www.assetmanagement.hsbc.com.sg/

Company Registration No. 198602036R