Being 99.56% accurate is not enough

On Monday, we paid our investors the last money from the Gotthard Yard 2 project. Although we subjected this project to standard risk scoring, the developer failed to sell the project within the expected deadline due to the market situation and there were delays. We understand that this situation has been uncomfortable for you as an investor. However, thanks to perseverance and hard work, we managed to pay you off over 26% appreciation p.a. We hope that despite the delay, such an above-standard return is an excuse enough.
‍

What actually happened? Historically, more than 1000 deals have passed through our risk model and 0.44% of projects are currently delayed with interest payments. The probability is low, but not zero.
‍

Unfortunately, less than half a percent of the delayed projects fell into Gotthard Yard 2, a project with huge potential, which unfortunately ran into the current market situation. The developer found himself in a situation where he could not repay the loan on time, but we actively dealt with the situation personally with him. Once again, we found that even if things don't go according to plan, they can be resolved through intense personal negotiations. We would like to thank the developer for their excellent cooperation and for your patience.
‍

The Gotthard Yard 2 project has once again reminded us why it is important to constantly innovate. Our risk model should constantly minimize delays in development projects. At Investown, however, we think 99.56% accuracy is not enough. That's why we started to develop The New Scoring Modelwhich brings the risk of delay even closer to zero. For old loans, the original rating will be maintained, after the implementation of revisions of existing loans, individual loans will be gradually reassessed according to the current scoring model. Starting next Monday (March 25, 2024), we start using a new model with higher data granularity.
‍

On behalf of the entire Investown team, we thank you for your trust and favour.