Capital at Risk

No FSCS protection

Whilst The HIP Plc ISA is managed by Northern Provident Investments, an ISA plan manager, the Loan Notes that you will invest in are issued by Holmes Investment Properties Plc (‘HIP’ or ‘the Company’), which is unregulated. Any losses incurred by the failure of the Loan Notes would not be protected by the Financial Services Compensation Scheme (‘FSCS’). If HIP Plc ceases to exist or goes into liquidation you would not be able to put in a complaint through the FSCS for any compensation.

Exposure to external events

The trading and assets of the Group could be affected by unforeseen events outside its control, including economic, social and political events and trends. These include changes in economic, political, administrative, taxation or other legal or regulatory regimes, terrorist or other attacks, inflation, deflation or other currency exchange fluctuations.

Diversification

Diversification means spreading your investments across different asset classes and sectors. All investments through The HIP Plc ISA Bond will be in Loan Notes, you should be aware that all monies invested will be in the same sector and through the same asset class. You should consider spreading your investment risk and seek independent advice when you are not sure if an investment is suitable. You are not able to invest more than 10% of your net assets through The Holmes Investment Properties ISA in the bond unless you are a high net worth investor, a certified sophisticated investor or a self-certified sophisticated investor.

Non-ready realisable investment

Investors should be aware that the Loan Notes you will invest in are non-readily realisable investments. Investment through the HIP Plc ISA should be viewed as a long-term investment. It may be possible for the Loan Notes to be sold but it may be difficult to sell the Loan Notes held through the HIP Plc ISA.

Risks associated with an investment into the HIP Plc Loan Notes

An investment in the Notes involves a high degree of risk. Accordingly, prospective investors in the Loan Notes should consider carefully all of the information set out in the Information Memorandum document and the risks associated with an investment in the Company prior to making any investment decision.

The information set out in the Information Memorandum document does not purport to be an exhaustive list or summary of the risks which the Company may encounter and is not set out in any particular order of priority. Prior to making an investment decision, prospective Note holders should consider carefully all of the information set out in the Information Memorandum and should consider whether an investment in the Company through the Loan Notes constitutes a suitable investment in light of their personal circumstances, tax position and the financial resources available to them. If you are in any doubt as to the action you should take, you should consult a person authorised under the FSMA before making any decision to invest in the Notes.

Past performance

Past performance of financing is not necessarily a guide to future performance. Past events, experience derived from these, or assumptions derived from any of these, do not predetermine the future.

The Company’s business strategy

The Company’s business plan is based on assumptions about market performance and predicted future trading of its current and proposed business activities, which are supported by research undertaken and the Operating Company’s team’s experience to date. The Company considers these assumptions to be reasonable but is inherently subject to variation and uncertainty. There is no certainty that all or any of the elements of its business plan will be fulfilled, that the outcome of the Company’s strategy will be as anticipated or that the Company will achieve the required level of profitability or sufficient cash flow to achieve its stated objectives.

Inflation risk

You should be aware that if the return on the bond fails to pay a return that beats inflation, especially the real value of your savings could fall.

Other risk

Prospective investors in the Loan Notes should consider carefully all of the information set out in the Information Memorandum document including matters such as risks relating to the Company’s business, including dependency on key personnel, competition, the leisure sector, property development, adequacy of insurance cover, land costs and availability, increases in the costs of materials, suppliers and contractors, advance contracts, contractual malfunction, additional leisure partners and competitors, corporate strategy, future funding, debt financing, currency fluctuation, the UK’s membership of the EU,