Investment Risk Statement
Important disclosures regarding fractional real estate development and co-investment in Nigeria
This document is published as an operational working draft for client review, architectural preview, and legal counsel consultation. It is not presented as a finalized or binding legal document, nor does it constitute formal legal advice. All operational policies, indemnification clauses, dispute mechanisms, and warranties remain subject to revision, statutory customization, and execution by authorized corporate legal counsel under the laws of the Federal Republic of Nigeria.
1. Projected vs. Guaranteed Returns
Target internal rate of return (IRR) figures (e.g. 18% – 32% annual return) displayed across AGS project showcases are based on conservative underwriting, historical rental yield comps in Abuja and Lagos, and certified quantity surveyor cost models. They represent projected performance, not fixed or guaranteed bank returns.
2. Illiquidity & Holding Lock-in Periods
Real estate developments require committed capital for structural construction, interior fitting, and regulatory title perfection. Co-investment units cannot be redeemed prior to scheduled maturity windows (typically 12 to 24 months) except via secondary marketplace listing where buyer demand permits.
3. Special Purpose Vehicle (SPV) Asset Ring-Fencing
To safeguard co-investors, each development is ring-fenced within a dedicated corporate Special Purpose Vehicle (SPV). The underlying real property (C of O, Governor's Consent, or registered Deed) is held on behalf of fractional investors to ensure that parent company liabilities cannot encumber the development.
4. Macroeconomic & Inflationary Variables
Nigerian macroeconomic conditions—including exchange rate fluctuations affecting imported MEP (mechanical, electrical, and plumbing) fittings, sovereign interest rate variations, and state property taxation adjustments—may impact net yield distributions and project delivery timelines.
5. Independent Financial & Legal Advice
AGS Property & Investment does not act as your personal financial advisor. Prospective co-investors must evaluate whether real estate equity crowdfunding aligns with their net worth, liquidity needs, and risk profile. We strongly advise consulting an accredited financial planner or legal counsel before committing capital.