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FAQs iFrame2020-01-08T15:27:00+00:00

We’re here to help

If you can’t find the answer you’re looking for in our FAQs, please contact us directly on 020 7100 9744 or email us at help@cogress.co.uk

When was Cogress launched and who founded it?2019-12-20T00:25:37+00:00

Cogress was launched in the UK in 2014, following the success of the model at its sister company, Keren Hagshama in Israel. Cogress was founded by Tal Orly, a former solicitor and developer with over 20 years’ experience. Since 2014, Cogress has committed £175m+ for over 55 UK property development projects and has an investor community of more than 7,000 registered investors who qualify.

Read more

Are you regulated?2020-01-03T12:12:09+00:00

Yes. Cogress Limited is authorised and regulated by the Financial Conduct Authority (FCA) (no. 696171) as a Small Alternative Investment Fund Manager (Small-AIFM). The products are not authorised or recognised Collective Investment Schemes and are considered Unregulated Collective Investment Schemes (“UCIS”)

FCA regulation is designed to protect consumers, enhance market integrity, and promote competition. We are bound by law and regulation to meet the FCA’s required standards at all times, and readily comply with its rules and principles.

Cogress conducts both regulated and unregulated business. Business activities described in the ‘developer’ section of this website are not authorised and regulated by the Financial Conduct Authority (“FCA”).

Who is my Investor Relations Manager?2019-12-20T09:51:12+00:00

Every Cogress investor is introduced to an Investor Relations Manager (IRM) who will act as their main point of contact. They will provide information about live investment opportunities and answer any questions an investor may have about their Cogress investment portfolio. If you are not sure who your IRM is, please get in touch with us on: 020 7100 9744. Read more

Who can invest?2020-01-08T15:23:27+00:00

Cogress investment opportunities are open to investors who qualify as either a high net worth investor or a sophisticated investor.

If you earn over £100K a year or have net assets (excluding your primary residence or pension) of over £250K, you qualify as high net worth. Read more.

A sophisticated investor is someone who has previous experience of these or other alternative investments. Read more.

Cogress investments are open to UK & EEA member state residents. If you live elsewhere in the world and wish to invest, please enquire with us as restrictions vary from country to country.

Unfortunately, US citizens cannot currently invest with us.

Do you reward people for referring friends or family?2019-12-20T09:58:58+00:00

Over 30% of our new investors come from the personal recommendations of existing clients. We really appreciate these referrals and have a referral programme that rewards people every time someone they have recommended invests with us. Further information can be found here.

How does the Cogress model work?2020-01-08T11:26:20+00:00

Cogress takes a new approach to property development investment. We connect property developers and investors and unlock previously inaccessible investment opportunities.

Investors get access to both private equity and mezzanine loan investment opportunities that help fund carefully vetted property development projects.

We regularly meet developers and always carry out a thorough due diligence process on them and the projects they present to us. Only if a project passes our rigorous feasibility analysis do we present it to our community of investors, who can pick and choose the projects that most appeal to them.

Investors can invest from £20K upwards. Once invested, they receive regularly quarterly reports and status updates on the project’s progress.

Any returns are paid upon exit.

Learn about our model.

How does the Cogress model differ to crowdfunding?2019-12-20T10:02:52+00:00

The main differences between our model and crowdfunding are:

  • Our investment opportunities are offered only to investors who qualify – i.e. those who self-certify as sophisticated investors or high-net-worth individuals
  • Cogress acts as the General Partner for investors, acting as their single voice and representing their best interests throughout the life of the project
  • Cogress oversees the project through to exit, regularly visiting sites, assessing the budgets and timescales and providing investors with regular and comprehensive updates.
What is Cogress’ current investment strategy?2020-01-03T13:36:14+00:00

Our current investment strategy for property development projects typically focuses on multi-unit projects in London and key growth hubs throughout the UK, with capital values below c. £1m per unit and a price per square foot below c. £1,000. These can be residential, mixed-use or commercial properties.

What are the typical target returns and when do they get paid?2020-01-08T12:28:48+00:00

Full details of target returns can be found on individual investment presentations for our live opportunities.  These can be viewed once you register on our site as a High Net Worth or Self-Certified Sophisticated Investor.  Please click here to register.

What is an equity investment vs a mezzanine investment?2020-01-08T12:27:22+00:00

When investing in an equity opportunity, investors are taking an equity stake in a project and share any profits* with the developer upon exit (typically in a 50/50 split). The investment is secured* against the title deeds of the property and a personal guarantee from the developer. Equity is subordinate to senior debt and to any mezzanine debt.

When investing in a mezzanine loan opportunity, investors are lending money to the development vehicle and earn returns* on the project in the form of interest, payable upon exit. The investment is secured* with a 2nd or 3rd charge against a property alongside a personal guarantee from the developer. Mezzanine debt ranks below senior debt but above equity holders in the case of insolvency.

*Profit is not guaranteed in any way. Capital at risk. Past performance is not a reliable indicator of future results.

How is the investment structured?2019-12-20T10:07:37+00:00

When investing in a project, investors become a partner in a UK Limited Partnership that is established for that specific development. Cogress acts as the General Partner of the Limited Partnership, representing the best interests of investors.

In an equity investment, a joint venture is established between the developer and the investors’ Limited Partnership (LP). This joint venture agreement (JVA) establishes the relationship between the two parties and outlines the responsibilities of the developer. Each JVA is investment-specific. Cogress ensures that the JVA terms protect investors’ best interests by incorporating mechanisms that mitigate some of the risks of property development, such as delays or cost over-runs.

A special purpose vehicle in the form of an LLP is then established. This LLP is typically 90% controlled by the LP (i.e. Cogress investors) and owns 100% of the property title.

In a mezzanine investment, a special purpose vehicle in the form of an LLP or Ltd company is established which lends to the developing entity.

Learn more

Is it a fund?2020-01-08T11:24:56+00:00

No. Projects are not grouped together in a unique fund structure. Each project is set up and managed as a standalone UK Limited Partnership, and as such investors have complete control over which project(s) they want to invest in.

What proportion of total project funding do Cogress investors provide?2019-12-17T12:53:56+00:00

Typically, the total cost of a development is funded by three sources; c.70% of the total project cost is funded by senior debt (e.g.: a loan from a bank or specialist lender). Of the remaining 30%, c. 90% is funded by Cogress investors in the form of a mezzanine loan or private equity, and the developer funds the rest. Cogress underwrites the full amount provided by its investors, giving the developer and investors the comfort that the project will definitely go ahead.

What are the project timescales?2019-12-17T12:51:47+00:00

Each project has its own target timescale, which is laid out in the business plan before you invest. The average project duration is 18-36 months (estimated and it may take longer).

How does Cogress select developers and projects?2020-01-09T12:20:11+00:00

We are extremely selective when choosing our investment opportunities, typically proceeding with a very small proportion of those presented to us by developers.

Our analysts conduct rigorous due diligence on each property development, including scrutiny of everything from market conditions to the developer’s expertise and track record.

This research is then distilled and provided to investors in a unique investment presentation. Learn more

What information is provided to investors about each project?2019-12-17T12:55:03+00:00

Investors receive a detailed Investment Presentation when each project launches, allowing them to make an informed decision about whether to invest.

Investors can also view the following documents (relevant to each investment) via the online Investor Portal:

  • Limited Partnership Agreement
  • Joint Venture Agreement or Mezzanine Finance Agreement
  • Investment Arrangement Agreement
  • Key Information Document
How am I updated on my project’s progress once I’ve invested?2019-12-17T13:06:49+00:00

Investors receive comprehensive quarterly reports on a project’s progress, prepared by Cogress’ portfolio management team who visit the site on a monthly basis and are in regular communication with the developer.

What is the max/min investment?2020-01-03T13:34:57+00:00

The minimum investment is £10,000. There is no defined maximum investment, however, each investment will have a limited amount of funding being raised, which means there is an upper limit to how much can be invested in a single project.

Can I take my money out early?2019-12-17T13:07:48+00:00

No, it is a non-liquid investment and as an investor you commit to the project for the full duration. You must consider whether such illiquidity might hinder your lifestyle and finances taking into account relevant factors including age. Target Project Duration is only a guide and duration may be longer.

What are Cogress’ fees?2020-01-03T13:28:27+00:00

Development Investment Projects

Cogress charges an up-front Set up and Monitoring Fee for each project (typically 6-7%) to cover the costs of due diligence, legal fees and the ongoing monitoring and management of the project.

Where profits have yielded a return of 10% per annum or more for investors, Cogress also retains a proportion of those profits (the Success Fees) depending upon the level of investment, for example:

  • £20,000 – £50,000 investment: 20% success fee
  • £60,000 + investment: 15% success fee

Note that in all our correspondence with investors, projected returns are quoted net of all fees but not taxes.

 

Selina Hotel Investments

Cogress charges an up-front Set up and Monitoring Fee to each portfolio to cover the costs of due diligence, legal fees and the ongoing monitoring and management of the project.

No success fees are charged. Cogress instead receives a percentage of EBITDA of all hotels in the portfolio and retains any surplus as profit once investors’ interest and capital is repaid.

Where is my money held?2019-12-17T13:05:17+00:00

Any money invested with Cogress is held in a client account in accordance with the FCA Client Money rules up to the point of completion on the purchase of the property. After deduction of the Set up and Monitoring fee, the money is then passed on to the seller’s solicitors to complete the purchase.

Can I meet other investors?2019-12-20T00:27:37+00:00

Cogress runs regular events on a variety of topics including ‘meet the developer’ sessions, allowing our investors to meet each other and hear directly from the developer of their project. For more information on our upcoming events, click here

Can I visit the site?2019-12-17T12:59:08+00:00

Investors are welcome to visit the site before deciding to invest, or once they have invested and a project is underway.

Please simply contact your IRM to arrange a site visit.

How often do you launch new projects?2019-12-17T12:50:29+00:00

Typically, 1 or 2 new projects per month. Cogress focuses on quality over quantity.

How do I invest?2020-01-09T10:35:23+00:00

If you would like to find out more about our investment opportunities and qualify as a High Net Worth individual or Self-Certified Sophisticated investor, please register on our site and one of our Investor Relations Managers will be in touch with further information.

If you decide to invest, we will start our client on-boarding process and contact you to request certified proof of identification and of address.

How do my investment returns get taxed?2019-12-17T13:04:32+00:00

The tax treatment of returns differs per project and is detailed in each investor presentation.

However, this information is provided for information purposes only. Investors remain fully responsible for their tax affairs. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.

Please note that Cogress is not qualified to provide tax advice. If required, we recommend that you seek advice from a qualified accountant or tax advisor on this matter.

Who are Selina?2019-12-20T11:08:46+00:00

Selina was founded in 2014 by Daniel Rudasevski and Rafi Museri and is a global hospitality brand with 128 properties across 19 different countries. They focus on the millennial market and are creating environments where people can come together to work, stay and enjoy themselves. By combining co-working areas with hotel rooms as well as bars, restaurants and activities/events (such as yoga, live music etc), Selina properties attract both locals and tourists and are designed to allow visitors to experience and become part of the local community. Find out more.

Who are Selina’s Target Market2019-11-11T08:42:14+00:00

In general, Selina targets the millennial market (also known as ‘Generation Y’). Millennials are people who were born roughly between 1980 and the year 1996. They account for 31% of the world’s population and they love to travel and to work remotely. By 2035 it’s predicted there’ll be one billion digital nomads (people who can work and travel at the same time) globally with 60% of them aged 26-36.

What are Selina’s growth plans?2019-11-11T08:41:18+00:00

Their goal is to increase their revenue 550% to £2.6bn by 2023. They intend to quadruple the number of beds to 170,000, and be operational in 40 countries.

What is the relationship between Cogress, Arcstone and Selina?2019-12-17T12:17:49+00:00

Arcstone Developments Limited (“Arcstone”) is the new development arm of Cogress Limited. Both Cogress & Arcstone were founded by Tal Orly, a lawyer and veteran of the UK property market who boasts nearly three decades of experience as a property developer and financer.

Arcstone has recently entered into a joint venture agreement with Selina to provide £18m per annum to fund refurbishment and costs associated with transformation works for Selina hotels in the UK and Portugal. The joint venture agreement is for a period of 5 years during which Arcstone will provide a total of £80m to Selina hotels.

Cogress is arranging and marketing the investment opportunity which is provided exclusively to the Cogress investor community. Cogress will also provide services to Arcstone for the provision of analysis and monitoring.

How is the investment structured?2019-12-20T11:10:41+00:00

Individual investments will be pooled within a Limited Partnership, the funds from which will invest in a three year loan to an Arcstone SPV which will in turn lend the funds to a portfolio of Selina hotels.

How are returns paid?2020-01-09T10:36:40+00:00

Returns will take the form of interest with a proportion paid quarterly and the remainder on exit.  Full details of the returns can be viewed in the investment brochure which is accessible to High Net Worth or Self-Certified Sophisticated investors who register on the site.  Click here to register or Sign In if you are already registered.

How do my investment returns get taxed?2019-12-20T11:13:55+00:00

The tax treatment of returns is detailed in each investor presentation.

However, this information is provided for information purposes only. Investors remain fully responsible for their tax affairs. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.

Please note that Cogress is not qualified to provide tax advice. If required, we recommend that you seek advice from a qualified accountant or tax advisor on this matter.

What information is provided to investors about each hotel portfolio?2020-01-09T12:20:44+00:00

Investors receive a detailed Investment Presentation when each portfolio launches, allowing them to make an informed decision about whether to invest.

Investors can also view the following documents (relevant to each portfolio) via the online Investor Portal.

Can I take my money out early?2019-12-20T11:15:59+00:00

No, investment in Selina hotels is a non-liquid investment and as an investor you commit to the investment for the full duration. You must consider whether such illiquidity might hinder your lifestyle and finances taking into account relevant factors including age.

What’s the maximum and minimum investment amount?2019-12-20T11:20:45+00:00

The minimum investment is £10,000. There is no defined maximum investment, however each Selina hotels portfolio will have a limited amount of funding being raised, which means there is an upper limit to how much can be invested in a single portfolio.

What is the security on the investment?2019-12-20T11:38:49+00:00

Three tiers of security will be granted to the Arcstone SPV to which investors are lending funds.  Investors will benefit from these securities via a debenture and legal charge over the Arcstone SPV, to be executed as necessary by an independent security trustee.

This security includes a 1st charge over the Selina hotel lease(s) as well as both country-level and global level corporate guarantees from Selina.

Are there any fees to invest?2020-01-08T12:34:10+00:00

Cogress does not charge investors any fees for investment in the Selina Hotels.  A fee is charged by Arcstone to Selina and is detailed in full on each investment portfolio presentation.

How do I invest?2019-12-20T11:21:10+00:00

If you would like to find out more about our investment opportunities and you qualify as a High Net Worth individual or Self-Certified Sophisticated investor, please register on our site and one of our Investor Relations Managers will be in touch with further information.

If you decide to invest, we will start our client on-boarding process and contact you to request certified proof of identification and of address.

How am I updated on my project’s progress once I’ve invested?2020-01-09T12:01:20+00:00

Investors receive comprehensive reports on a portfolio’s progress every 6 months, prepared by Cogress’ portfolio management team who are in regular communication with Selina.

Any questions? Call the Cogress team on 020 7100 9744 or email help@cogress.co.uk