INVESTOR PROTECTIONS
Your Capital is
Structurally Protected
Groundz uses legally isolated Special Purpose Vehicles, registered collateral, escrow-controlled disbursements, and independent oversight — so your investment is protected by structure, not just promises.
Core Legal & Financial Protections
SPV Isolation
Every investment pool is housed in a separate Special Purpose Vehicle (SPV) registered in Cyprus. Your capital is legally ringfenced — problems in one project cannot affect another, and Groundz's corporate liabilities cannot touch pool assets.
- Separate legal entity per pool
- Cyprus company registration
- No cross-pool contamination
- Bankruptcy-remote structure
Registered Security Interest
Debt note and senior debt instruments include a registered charge over the underlying property or development asset. In the event of default, secured creditors have priority claim on the asset before unsecured parties.
- Charge registered with Land Registry
- Priority repayment on exit
- Asset value ≥ loan amount (LTV covenant)
Escrow-Controlled Disbursements
Funds raised into the SPV are held in a dedicated escrow account and released to the developer only upon hitting verified construction milestones. No milestone achieved — no funds released.
- Milestone-gated fund release
- Third-party escrow agent
- Digital evidence trail per disbursement
Developer Co-Investment
Groundz requires developers to co-invest their own capital in every pool. This aligns developer incentives with investor outcomes — they lose money first if the project underperforms.
- Minimum 10–20% developer co-invest
- Disclosed in every pool data room
- Verified before raise opens
Independent Audit & Reporting
SPV accounts are audited annually by an independent Cyprus-registered auditor. Construction progress is verified by a third-party quantity surveyor before each escrow release. Reports are available to all pool investors.
- Annual SPV audit
- QS sign-off per escrow draw
- Audit reports in investor data room
KYC & AML Compliance
All investors undergo Know Your Customer and Anti-Money Laundering screening before committing. This protects the pool from illicit funds and ensures regulatory compliance across all EU and FATF jurisdictions.
- Identity & address verification
- Proof of funds check
- EU AML directive compliance
Protection Level by Deal Type
| Protection | Equity | Debt Note | Rental Income | Club Deal |
|---|---|---|---|---|
| SPV Isolation | ✓ | ✓ | ✓ | ✓ |
| Registered Security | — | ✓ | — | ✓ |
| Escrow Disbursements | ✓ | ✓ | — | ✓ |
| Developer Co-invest | ✓ | ✓ | ✓ | ✓ |
| Priority Repayment | — | ✓ | — | — |
| Independent Audit | ✓ | ✓ | ✓ | ✓ |
Debt Note investors have the highest structural protection: registered security + priority repayment. Equity investors accept higher risk in exchange for higher IRR potential.
IMPORTANT NOTICE
All investments carry risk. Past performance is not indicative of future results. The value of your investment may go down as well as up. Capital invested in real estate development pools is illiquid for the agreed investment term and cannot be redeemed early. Please read the full Information Memorandum for each pool before committing capital. Groundz's investment products are intended for experienced investors who understand and can bear the risks of private real estate investment.
Ready to invest with confidence?
Apply as a qualified investor and get access to current pool data rooms.