Risks

Legal disputes risk

Legal proceedings and disputes may occur and arise as "BOSQUECOLINA" is party to. The risk is that such disputes fall to thedisadvantage of "BOSQUE COLINA" with significant costs as a result.

Assessmentrisk

The value of one or more properties or projects in "BOSQUECOLINA" s portfolio may decline in value as a result of, for example,variations in the market value or impairments related to the condition of theproperty. If the value drops, it can be difficult for "BOSQUE COLINA"to sell the property at a profit or to raise new financing if the property cannot be used as collateral, which could potentially degrade both "BOSQUECOLINA 's financial position as the investor's security.

Liabilityrisk

Properties owned by "BOSQUE COLINA" can be destroyed byfire, water damage, or the like. "BOSQUE COLINA" can additionally,through negligence cause damage to person or other person's property of anotherand cause environmental damage for which "BOSQUE COLINA" becomesresponsible.

Inadequate insurance coverage can additionally lead to unforeseencosts. Liability and compensation for the resulting damage can also occur forpersonal injuries and damage to property of others and for the remediation ofenvironmental damage. Each of these risks could have a material adverse effecton "BOSQUE COLINA 's operations, performance, and financial condition.

Interestrate risk

Developments in the financial markets may affect the interestrates on the market, which means that interest costs could affect "BOSQUECOLINA 's return opportunities and financial situation.

Foreignexchange risk

Fluctuations in currencies exchange rates may affect "BOSQUECOLINA" earnings and financial position.

Risksassociated with the early stages

Many projects are in the early stages, which increases the levelof risk in that uncertainties are more and more apparent.Examples of suchuncertainties are the lack of (a) credit decisions by bank or other financiers;(b) short, medium and long term financing; (c) statutory building permits; (d)contracted contractors, (f) contracts (acquisition agreements, leaseagreements, booking agreements, etc.) that are legally binding and / or have apractical financial value; (g) take up property or tenant-owner rights, (h)overview of how the market will look or develop when the project in question tobe sold, completed, refinance, etc.

Economicand divestment risk

Some projects are dependent on the increase in value to reach thetargeted returns, there is a risk that the fluctuations in the economy reducesthe overall demand in the market, which means that the price level of realestate and condominiums may decline or that the number of potential buyers islimited. In addition, there is a risk that "BOSQUE COLINA" will notfind buyers due to misjudgements, infrastructural changes, political decisionsetc., regardless of the business cycle.

Liquidityrisk

"BOSQUE COLINA 's payment obligations related to investmentsand amortization and interest expense, require good liquidity. If "BOSQUECOLINA" does not have sufficient liquidity to meet its obligations, it canhave a negative effect on the project's ongoing operations, financial conditionand results. Regardless of the property and the quality and status of theproject, a liquidity shortage can lead to insolvency and bankruptcy.

Investmentrisk

“BOSQUE COLINA” can, when acquiring land or projects, take over acompany or a property that can impose obligations or contain assets with anegative impact on “BOSQUE COLINA ”'s financial position.

Politicalrisk

Changing laws and regulations (tax law, property law, orotherwise) may affect "BOSQUE COLINA"'s ability to continue tooperate according to the same conditions as before, and can significantlyaffect its financial condition and ability to complete projects and refunds.