One Square Metre By Casafina Capital Limited | Project Type
Managing Risk

How we manage risks

Technical Risks
The security and the protection of investments is a primary concern in the design and operation of the ONESQM™ projects from conception to closure. We mitigate risk in the following way:

  1. Asset Backed Investment:
    All investments are secured by the underlying assets and the underlying assets are secured via series of insurance and guarantees.

  2. Professional Trustee & Custodian:
    All funds deposited in the purchase of fractional real estate on ONESQM™ are managed by independent, Security Exchange Commission (SEC) licensed fund managers and Trustees. The fund manager manages distribution, investment decisions relating to funds. The trustees hold on behalf of investors, all title and assets and manage in partnership with the fund managers, the distribution of rental income. In case of liquidation or bankruptcy of any of the parties, all funds remain protected

  3. Verifiable Title:
    All land designated for ONESQM™ developments, whether direct purchase or via joint venture, must fulfill key criteria including a verifiable certificate of occupancy (CofO), verifiable absence of any encumbrance, zoning approval must permit the type, size and structure of the proposed project.

  4. Cost Management:
    All projects are estimated by qualified quantity surveyors to prevent cost overrun and project stagnation and a 5-10% reserve is allocated to cover unforeseen contingencies.

  5. Adequate Funding Strategy:
    The building construction will not commence until the funding goal is achieved, thereby minimizing the risk due to non-completion of project. Where funding goal is not reached, the investors are refunded with an interest payment calculated at prevailing call deposit rate.
  1. Dedicated & Pre-Qualified Contractors:
    At the point of development, ONESQM™ will work through a dedicated team of pre-qualified construction contractors, quantity surveyors, architects, Lawyers and specialists. All partners will be required to provide insurance bond that guarantee the completion of the project in accordance to schedule and specification.

  2. Premium Location:
    All our projects are located within urban, high rental value environments, the potential cash flow is suitable and can service possible mortgage should that be required to buy back the asset from the purchasing asset owners. This is not envisaged however.

  3. Asset Insurance & Protection:
    All assets from near completion are insured to 100% of the value of the property with the investors in ONESQMTM listed as the preferred/first beneficiary. Essentially, until after complete payment and investor sign off, the project/building is owned by the investors.

  4. Bankruptcy Protection:
    All assets are owned by investors via a deed held by trustee in favor of the investor. This guarantees that should ONESQM™ or the sponsors go into bankruptcy, investors assets and ongoing returns are guaranteed
  1. Available Off-Takers:
    All units are pre-sold from the commencement of construction via a well-coordinated multimedia and multiplatform marketing campaign.

  2. Discounted Offering:
    The properties are sold at significantly discounted price via the RTO schemes to facilitate uptake/absorption.

  3. Guaranteed Returns:
    The return on investment is guaranteed as the projected return is a conservative return well below the traditional return on real estate investment.

  4. Co-Investment & Common Goal:
    The sponsor of this project will not earn profit until the minimum guaranteed return is paid to investors ensuring commitment to common objectives of profitability and cost control.

  5. Independent Audit:
    Our independent auditors will vet and audit all transactions, project timelines and budget vis-a-vis project schedule/time table to ensure that there is no cost overrun, and guarantee efficiency in the utilization of member’s fund.

Investment Risks

Prepayment Risk
The risk that a subscriber pays off the entire payment on the house before the projected leasehold denying the investor the expected rental cash flow over the project time period. To mitigate this risk, the sponsors will hold at least 15% of investment in any unit built or acquired on the scheme, this will absorb the prepayment risk on the scheme.
Default Risk
A reserve fund equivalent to projected one year rental payment for any project will be created at inception. This will absorb cash flow shortfalls on the scheme and during the leasehold period.
Interest Rate Risk
When prevailing interest rate rises above the fixed rental repayment. While, the risk may be that you will not be able to earn at the prevailing interest, this does not affect investor cash flow in anyway.

Earn up to 25% ROI

Secured Asset-Backed Real Estate Investments

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We work with

casafina consultant
Project Consultant
Casafina Capital Limited Fund Manager
Keystone Bank Platform Banker
Mazar Auditor