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18.119. Construction risk

The targeted company may, in future, enter into construction agreements with building contractors to construct and develop its projects. The costs of these projects can vary due to:

1.  scope and design changes;

2.  increases in the rate of inflation of building materials;

3.  increases in taxes and other regulatory charges;

4.  changes in laws, regulations or government policies (including those relating to health and environmental compliance safety) which increase the costs of compliance with such laws, regulations or policies;

5.  unforeseen expenditure which arises as a result of defects affecting the existing buildings which form a part of the development project and which need to be rectified.

Any material increase in the costs of, or delay in completing, construction projects may adversely affect the profitability of the Investment Compartment and/or reduce its net asset value growth.